[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[H.R. 7980 Referred in Senate (RFS)]

<DOC>
118th CONGRESS
  2d Session
                                H. R. 7980


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                           September 16, 2024

     Received; read twice and referred to the Committee on Finance

_______________________________________________________________________

                                 AN ACT


 
  To amend the Internal Revenue Code of 1986 to exclude vehicles the 
 batteries of which contain materials sourced from prohibited foreign 
                entities from the clean vehicle credit.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``End Chinese Dominance of Electric 
Vehicles in America Act of 2024''.

SEC. 2. EXCLUSION FROM CLEAN VEHICLE CREDIT OF VEHICLES CONTAINING 
              MATERIALS SOURCED FROM PROHIBITED FOREIGN ENTITIES.

    (a) In General.--Section 30D(d)(7) of the Internal Revenue Code of 
1986 is amended to read as follows:
            ``(7) Excluded entities.--
                    ``(A) In general.--For purposes of this section, 
                the term `new clean vehicle' shall not include any 
                vehicle--
                            ``(i) with respect to which any of the 
                        components contained in the drive battery or 
                        any material contained in such a component was 
                        extracted, processed, recycled, manufactured, 
                        or assembled by a prohibited foreign entity, or
                            ``(ii) the drive battery of which is 
                        designed, manufactured, or produced using any 
                        process attributable to any licensing, royalty, 
                        service, or similar agreement with a prohibited 
                        foreign entity the estimated total contract 
                        cost, including variable, contingent, or sales-
                        based payments, of which exceeds $5,000,000.
                    ``(B) Prohibited foreign entity.--For purposes of 
                subparagraph (A), the term `prohibited foreign entity' 
                means--
                            ``(i) any foreign entity of concern (as 
                        defined in section 40207(a)(5) of the 
                        Infrastructure Investment and Jobs Act),
                            ``(ii) any entity with respect to which the 
                        government of a covered nation has the right or 
                        power (directly or indirectly) to appoint or 
                        approve the appointment of a covered officer, 
                        or
                            ``(iii) any entity 25 percent or more of 
                        the capital or profits interests of which are 
                        owned (directly or indirectly) in the aggregate 
                        by 1 or more of the following:
                                    ``(I) A covered nation or an entity 
                                described in clause (i) or (ii).
                                    ``(II) A citizen, national, or 
                                resident of a covered nation.
                                    ``(III) An entity organized under 
                                the laws of a covered nation.
                    ``(C) Covered officer.--For purposes of this 
                paragraph, the term `covered officer' means--
                            ``(i) any member of the board of directors, 
                        board of supervisors, or an equivalent 
                        governing body,
                            ``(ii) the president, senior vice 
                        president, chief executive officer, chief 
                        operating officer, chief financial officer, or 
                        general counsel, or
                            ``(iii) any individual who performs duties 
                        usually associated with a title listed in 
                        clause (i) or (ii).
                    ``(D) Covered nation.--For purposes of this 
                paragraph, the term `covered nation' has the meaning 
                given such term in section 4872(d) of title 10, United 
                States Code.
                    ``(E) Drive battery.--For purposes of this 
                paragraph, the term `drive battery' means, with respect 
                to a vehicle, the battery from which the electric motor 
                of such vehicle draws electricity.''.
    (b) Effective Date.--The amendment made by this section shall apply 
to vehicles placed in service after the date of enactment of this Act.

            Passed the House of Representatives September 12, 2024.

            Attest:

                                             KEVIN F. MCCUMBER,

                                                                 Clerk.