Direct File’s Future and EV Regs
Sen. Crapo suggests Loper Bright decision opens door to blocking IRS’ Direct File. The Senate Finance Committee’s top Republican, Sen. Mike Crapo (R-ID), said last week that the Supreme Court’s overturning of Chevron deference in the Loper Bright Enterprises Inc. v. Raimondo case increases the chances of blocking the IRS effort to make Direct File permanent, reports TaxNotes (paywall). Direct File is the IRS’s free online filing program, piloted this spring and set to be national and permanent next year. Crapo has argued the IRS lacks statutory authority to build and run such a program. Chevron had required the courts to defer to government agencies’ interpretations of ambiguous statutes.
EV manufacturer sues Treasury over treatment of low-speed vehicles. A California-based electric vehicle (EV) manufacturer, Waev, makes EVs with a maximum speed of 25 miles per hour, which are currently excluded from the EV tax credits established by the Inflation Reduction Act (IRA). Waev has filed suit in the US District Court for the District of Columbia, arguing that Treasury’s rule misinterprets the intentof Congress to promote increased EV sales. “Not all EVs need to travel more than 200 miles or operate at highway speeds,” said Waev’s chief legal and policy officer.
Speaking of EVs… Chilean-mined lithium used for EV batteries will be eligible for US tax benefits under the IRA. The law requires a certain share of critical metals in EV batteries come from the US or a country with which the US has a free trade agreement. Chile has such an agreement with the US and is the world’s second-largest lithium producer.
West Virginia hits revenue target for tax rate trigger. Republican Gov. Jim Justice announced that the West Virginia Department of Revenue determined a 4 percent cut in personal income tax rates will go into effect in January 2025. The state ended its fiscal year on June 30 with over $5.7 billion in tax collections for the general revenue fund, resulting in an $826 million surplus.
Kenyan president fires his cabinet after deadly tax protests. President William Ruto dismissed with “immediate effect” all of his cabinet ministers and attorney general. He made the move after deadly protests of his tax bill, which he withdrew after “reflection, listening to Kenyans, and after holistic appraisal of my cabinet,” reports BBC. Ruto said he plans to establish a broad-based government.
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