Wed, Sep 21, 2022 4:03 PM
By By Brent Addleman | The Center Square, The Center Square
(The Center Square) – Maryland’s governor has penned a letter to the White House asking for President Joe Biden to address the Inflation Reduction Act and its provisions.
Gov. Larry Hogan, whose time in office is coming to a close as he is term limited, wants the White House to address “protectionist provisions” within the act that he feels imposes trade barriers, drives up prices, and threatens more affordable access to electric vehicles, while not reverting to trade policies that were in place under President Donald Trump.
“I appreciate and share your priority to bring greater manufacturing capability and supply chain stability to the United States’ domestic market,” Hogan wrote in the letter. “However, I am troubled by your administration’s decision to double down on trade policies favored by former President Trump that threaten American jobs and ultimately raise prices for American consumers. While onshoring is rightly our priority, friendshoring is an essential component of strengthening economic ties among the free world and combating dependence on Chinese goods.”
The act, according to the release, gives tax credits to electric vehicle purchasers only, as long as they are assembled in North America, which would eliminate 70% of vehicles in the market, along with plug-in hybrids, that would no longer qualify under the act.
According to the release, the Alliance For Automotive Innovation has said the most “will surprise and disappoint customers in the market for a new vehicle. The provisions were a key topic with Hogan’s talks with Korean leaders in Asia.
Hogan, in his letter, calls for Biden to use executive action to make sure the provisions don’t halt widespread adoption of electric vehicles or harm renewable energy source development.
“I understand that the IRA was fast-tracked in an election year environment and there is unlikely to be any legislative changes with just seven weeks until the midterm election,” Hogan wrote. “However, I am confident that there are actions the executive branch can and should take to address our allies’ concerns including delayed implementation, regulatory modification and development of waivers.”
Ownership of electric vehicles in Maryland has increased nearly tenfold since 2015, according to the release, and the state is ranked higher than 42 other states for electric vehicle ownership in the country.