WASHINGTON, D.C. – U.S. Congressman Max Miller (OH-07) introduced legislation that would prevent American taxpayer-funded subsidies from benefitting Chinese companies. Since the Biden-Harris Inflation Reduction Act (IRA) passed into law, the 45X “Advanced Manufacturing Production Credit” has the potential to be abused by companies controlled by China if they have a presence in the United States. 

The Inflation Reduction Act (IRA) included a new “Advanced Manufacturing Production Credit” to support solar, wind, and battery component manufacturers and to foster the development of a domestic supply chain for new energy technologies and energy storage. This credit as currently written would allow battery makers controlled by China to take advantage of tax credits if they have a presence in the U.S. Thus, Chinese battery makers could be subsidized by both China and the U.S. taxpayer, creating an unfair advantage and putting U.S. companies and jobs at risk. 

In July, Congressman Miller penned an opinion editorial in Crain’s Cleveland Business on this issue. In part, Congressman Miller wrote, “If we are serious about protecting and promoting American manufacturing, our tax code should support American manufacturing and American workers – not enrich companies controlled by the Chinese Communist Party. The growth of high-tech industries has the potential to create thousands of jobs in manufacturing, R&D, and related sectors but we must not allow American manufacturers to be left behind.”  

Specifically, the legislation will: 

• Restrict the advanced manufacturing production credit (45X(d) of the Internal Revenue Code of 1986) with respect to foreign entities of concern. This credit can be used for Solar Components, Solar Tracker Components, Wind Energy Components, Inverters, Battery Components, and Critical Mineral Production.  
• Restrict the advanced manufacturing production credit (45X(c)(5) of the Internal Revenue Code of 1986) to ensure “qualifying battery component” cannot include any battery component produced, using technology designed, developed, manufactured, licensed, or supplied by a foreign entity of concern.  

  

The full bill text is available here.
  
Editor’s note regarding Congressman Miller:    

Congressman Max Miller represents Ohio’s Seventh District which includes Medina and Wayne counties as well as parts of Cuyahoga and Holmes counties. Miller serves on the House Agriculture Committee and the House Committee on Science, Space, and Technology, for which he is also Chairman of the Environment Subcommittee. The Republican freshmen members selected Miller as their representative to the Republican Steering Committee.  He is a member of the Republican Study Committee, Main Street Caucus, and the Congressional Jewish Caucus. Before joining Congress, Miller spent six years in the Marine Corps Reserves and served in several senior positions for President Donald Trump. Please visit http://maxmiller.house.gov for more information.     

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