Proposed EV tax credit rules spark mixed reactions from manufacturers, lawmakers, and critics over foreign ownership concerns.

The proposed rules for electric vehicle tax credits have been welcomed by manufacturers, environmentalists, and some lawmakers, with some believing they will allow some cars and trucks to qualify for rebates. However, the Treasury Department’s proposal has been met with criticism from Republicans, some mining companies, and Senate Energy and Natural Resources Chair Joe Manchin (D-W.Va), who helped write the tax credit provisions in the Inflation Reduction Act. The Act requires the Department of Energy to determine if a company is owned or controlled by a foreign entity, and the Treasury Dept. administers the tax credits. An auto industry trade group, the Alliance for Automotive Innovation, stated that only about 20 out of more than 100 EV models for sale in the U.S. currently qualify for the incentives.