By David Shepardson

WASHINGTON, (Reuters) – A Democratic Senator has questioned whether tax credits for electric vehicles should be extended in light of high consumer demand and Chinese battery production.

Senator Joe Manchin is an important vote in an evenly divided Senate. He raised concern about the tax credit during a Senate hearing where he was joined by Transportation Secretary Pete Buttigieg.

There is a wait list right now for EVs, with fuel prices at $4. They want $5,000, $7,000, or $12,000 in credit for electric cars. Manchin claimed that this makes no sense. I find it absurd that when we don’t have enough product to satisfy the demand of those who want it, we still pay them for it.

Automobile manufacturers are spending tens to billions to increase EV production. Some fear Congress may not be able to provide EV tax credits as Republicans could retake one or both of the Houses next year.

Many Democrats in Congress and President Joe Biden suggested last year that EV tax credits be increased to as much as $12,500, with a special $4,500 incentive to union-made, U.S.-assembled cars. Manchin had previously opposed the only union incentive.

Biden also supported a 30% credit on commercial electric vehicles as well as an $4,000 tax credit for used EVs. This credit would make the credit available at the time of purchase and be refundable.

Biden is also seeking to eliminate the automaker tax credit practice. Once they have sold 200,000 vehicles, that would mean Tesla Inc (NASDAQ) will be eligible for the $7500 credit.

In April 2020, tax credits for General Motors vehicles (NYSE:) expired. Toyota Motor (NYSE:), said that it expects its credit to expire in 2022, after hitting the cap. Ford Motor (NYSE ) had sold more than 160,000 EVs to the end 2021. It could reach the cap this year.