US Sen. Warnock: Electric car tax credit needs 'flexibility'

SAVANNAH, Ga. (AP) — U.S. Sen. Raphael Warnock urged the U.S. Treasury secretary Friday to use “maximum flexibility” in implementing a revised tax credit for Americans buying

electric vehicles, a perk that Hyundai stands to lose as the automaker invests billions of dollars to open its first American EV plant in the Democratic senator's home state of

Georgia. Warnock sent a letter to Treasury Secretary Janet Yellen raising concerns that the revised tax credit President Joe Biden signed last month as part of a sweeping

climate and health law could place some automakers at a competitive disadvantage. That's because the new law says the credit of up to $7,500 only applies if the EVs and their

batteries are manufactured in North America. That means vehicles made by South Korea-based Hyundai would no longer qualify for the credit until the company starts producing

EVs in Georgia, which isn’t expected until 2025. “I urge you to offer maximum flexibility for vehicle manufacturers and consumers to take full advantage of the electric

vehicle tax credits available under the law,” Warnock's letter said. The U.S. Treasury Department is responsible for adopting regulations to carry out revisions to the EV

tax credit approved by Congress. Warnock’s letter doesn’t request any specific remedy from the department. In an interview, Warnock said he hopes to see Treasury officials

interpret Congress' revisions in a way that "we don’t end up punishing the very companies, like Hyundai, that are helping us bring this clean energy future.”