This bill restricts tax credits for advanced manufacturing by preventing companies from claiming federal tax incentives for components produced by or involving foreign entities considered a threat to U.S. national security. Specifically, it targets the advanced manufacturing production credit (Section 45X of the tax code) by blocking credits for components made by these foreign entities and for battery components that use technology designed or supplied by them. The restrictions apply to manufacturing done after the bill becomes law and are intended to ensure that federal tax dollars only support domestic production that doesn't rely on technology or involvement from countries or companies the government deems a security risk. This measure affects manufacturers in industries like semiconductors and batteries who receive federal tax credits for domestic production. The bill uses existing national security definitions from the 2021 defense authorization law to identify which foreign entities are excluded from the credit program.
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