Should vehicles with battery components sourced from prohibited foreign entities be excluded from receiving tax credits?
H.R. 7980 amends the Internal Revenue Code of 1986 to modify clean vehicle tax credit criteria. Specifically, it seeks to exclude vehicles whose batteries contain materials sourced from certain foreign entities identified as prohibited. These prohibitions focus on entities from nations considered to pose security or economic threats and include any company where foreign government entities have appointment rights over key executives or substantial ownership. The intent of the bill is to encourage the use of domestically sourced materials in electric vehicle production, thereby reducing U.S. dependence on foreign supply chains perceived as hostile or competitive.
Sponsor: Rep. Carol Miller (Republican, West Virginia, District 1)
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Opponents say
• "If enacted, this bill would materially slow the EV transition and set us back on meeting our climate goals, without doing much, if anything, to encourage additional domestic manufacturing. Pulling the rug out from under the broader EV ecosystem by enacting this draconian measure will not hurt China--we will only hurt ourselves. I urge my colleagues to oppose this bill." Source: Rep. Donald Beyer
(Democrat, Virginia, District 8)
Proponents say
• "China, or any adversary for that matter, should not have any access to American tax credits. Narrowing the definition of the Foreign Entity of Concern expands opportunities for American manufacturing while protecting our resources and our people. The Biden Administration’s dedication to the Chinese Communist Party embarrasses the United States, and Congress must lead when Joe Biden refuses to. The End Chinese Dominance of Electric Vehicles in America Act will close key loopholes in Treasury's EV credit guidance to ensure American tax dollars are kept here at home, and not in the pockets of our strategic adversaries." Source: Rep. Carol Miller (Republican, West Virginia, District 1)
