“To amend the Internal Revenue Code of 1986 to modify the advanced manufacturing credit with respect to the production of battery components.”
No CRS summary available for this bill.
This section modifies the advanced manufacturing production credit under IRC §45X for battery production, effective for components produced and sold after December 31, 2026, as follows: (1) increases the credit amount for electrode active materials to 25% (from 10%); (2) excludes from qualifying battery components any materials, cells, or modules containing applicable critical minerals extracted, processed, or recycled after December 31, 2026, by a prohibited foreign entity (as defined in new IRC §7701(a)(51)); (3) expands the definition of electrode active material to include electrode active precursor materials (i.e., cobalt sulfate, manganese sulfate, iron sulfate, lithium hydroxide, silicon, phosphoric acid, iron phosphate, nickel manganese cobalt oxide, silane, synthetic or natural graphite pitch, or lithium carbonate, if of sufficient purity for the electrode active materials market) and solid state electrolytes; (4) designates silicon or silicon composites used as electrode active materials in battery anodes as applicable critical materials; and (5) extends the phase-out of the credit for applicable critical minerals (other than metallurgical coal) to 2041 (from 2030), with phase-out percentages beginning in 2042 (from 2031), 2043 (from 2032), and 2044 (from 2033). (As background, IRC §45X provides tax credits to U.S. manufacturers for producing eligible clean energy components after 2022, including battery cell components and critical minerals, to promote domestic advanced manufacturing.)