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Bill Introduced in U.S. House that would Raise Restrictions on EV Tax Credit Qualifications

A bill was introduced in Congress by U.S. Representative Carol Miller (R-WV) that would make it harder for electric vehicles (EVs) to qualify for EV tax credits.

Under regulation set by Treasury under authority set in the Inflation Reduction Act, an EV is not eligible for the $7,500 tax credit if "25 percent or more of the entity’s voting interest, or board seats, or equity interest is held directly or indirectly by the government of a country of concern (China, Russia, North Korea, or Iran) or its officials." Rep. Miller's bill, the "End Chinese Dominance of Electric Vehicles in America Act (H.R. 7980)," would add "or by any person that is a citizen, national, or resident of such country," to the end of that condition. According to Rep. Miller, this change to the law is needed to close a loophole that allows Chinese citizens' unofficial ties to the Chinese Communist Party to slip under the radar.

H.R. 7980 would also expand the definition of a battery component to include components upstream of critical mineral extraction, processing, and recycling in the supply chain. Current law precludes an EV from qualifying for the tax credit if just critical minerals were extracted, processed, or recycled in a foreign country of concern. Rep. Miller argues that the current definition allows too much opportunity for Chinese manufacturers to bypass the requirements and benefit from taxpayer dollars.

Click here to read a summary of H.R. 7980. 

Click here to read the legislation in its entirety.