H.R. 7473 modifies federal tax credits to encourage domestic production of battery components and critical minerals used in electric vehicle and energy storage batteries. The bill increases the advanced manufacturing tax credit for electrode active materials from 10 percent to 25 percent, expands the definition of qualifying battery materials to include precursor materials and solid-state electrolytes, and adds silicon to the list of critical minerals eligible for the credit. The legislation also restricts credits for components containing critical minerals sourced from prohibited foreign entities after 2026 and extends the phaseout schedule for critical minerals credits, delaying reductions until 2041-2044 instead of 2030-2033. These changes take effect for battery components produced and sold after December 31, 2026, and are intended to boost domestic battery manufacturing and reduce dependence on foreign supply chains for critical mineral processing.
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