[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3200 Introduced in House (IH)]

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119th CONGRESS
  1st Session
                                H. R. 3200

   To amend the Internal Revenue Code of 1986 to modify the advanced 
    manufacturing credit with respect to the production of battery 
                              components.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                              May 5, 2025

    Mr. Ruiz (for himself and Mr. Evans of Colorado) introduced the 
 following bill; which was referred to the Committee on Ways and Means

_______________________________________________________________________

                                 A BILL


 
   To amend the Internal Revenue Code of 1986 to modify the advanced 
    manufacturing credit with respect to the production of battery 
                              components.

    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 ``Critical Minerals and Manufacturing 
Support Act''.

SEC. 2. MODIFICATION OF ADVANCED MANUFACTURING PRODUCTION CREDIT 
              RELATING TO BATTERY PRODUCTION.

    (a) Increase in Credit Amount for Electrode Active Materials.--
Section 45X(b)(1)(J) of the Internal Revenue Code of 1986 is amended by 
striking ``10 percent'' and inserting ``25 percent''.
    (b) Special Rules Relating to Production of Electrode Active 
Materials.--Section 45X(b) of such Code is amended by adding at the end 
the following new paragraph:
            ``(5) Special rules relating to electrode active 
        materials.--
                    ``(A) Production costs.--The production of 
                electrode active materials shall include the cost of 
                raw materials, including material extraction from 
                geological sources or waste products.''.
    (c) Sourcing Requirements With Respect to Qualifying Battery 
Components and Applicable Critical Minerals.--Section 45X of such Code 
is amended by adding at the end the following new subsection:
    ``(e) Critical Mineral and Battery Component Sourcing 
Requirements.--
            ``(1) Applicable critical minerals.--
                    ``(A) In general.--No credit shall be allowed under 
                this section with respect to a qualifying battery 
                component unless the percentage of the value of the 
                applicable critical minerals contained therein that 
                were--
                            ``(i) extracted or processed--
                                    ``(I) in the United States, or
                                    ``(II) in any country with which 
                                the United States has a free trade 
                                agreement in effect, or
                            ``(ii) recycled, and reintegrated into the 
                        supply chain, in North America,
                is at least equal to the applicable percentage (as 
                certified by the taxpayer in such form or manner as 
                prescribed by the Secretary).
                    ``(B) Applicable percentage.--For purposes of 
                subparagraph (A), the applicable percentage shall be--
                            ``(i) in the case of any qualifying battery 
                        component sold to an unrelated person during 
                        calendar year 2026, 70 percent, and
                            ``(ii) in the case of any qualifying 
                        battery component sold to an unrelated person 
                        after December 31, 2026, 80 percent.
            ``(2) Qualifying battery components.--
                    ``(A) In general.--No credit shall be allowed under 
                this section with respect to a qualifying battery 
                component unless the percentage of the value of the 
                constituent elements, materials, and subcomponents 
                contained therein that were produced, manufactured, or 
                assembled in North America is at least equal to the 
                applicable percentage (as certified by the taxpayer, in 
                such form or manner as prescribed by the Secretary).
                    ``(B) Applicable percentage.--For purposes of 
                subparagraph (A), the applicable percentage shall be--
                            ``(i) in the case of qualifying battery 
                        components sold to an unrelated person during 
                        calendar year 2026, 70 percent,
                            ``(ii) in the case of qualifying battery 
                        components sold to an unrelated person during 
                        calendar year 2027, 80 percent,
                            ``(iii) in the case of qualifying battery 
                        components sold to an unrelated person during 
                        calendar year 2028, 90 percent, and
                            ``(iv) in the case of qualifying battery 
                        components sold to an unrelated person after 
                        December 31, 2028, 100 percent.
            ``(3) Regulations.--The Secretary shall, to the extent 
        practicable, prescribe regulations similar to regulations 
        prescribed under section 30D(e) to carry out the purposes of 
        this subsection.''.
    (d) Excluded Entities.--Section 45X(c)(1) of such Code is amended 
by adding at the end the following new subparagraph:
                    ``(C) Excluded entities.--The term `eligible 
                component' shall not include any qualifying battery 
                component with respect to which--
                            ``(i) any of the applicable critical 
                        minerals contained therein were extracted, 
                        processed, or recycled by a foreign entity of 
                        concern (as defined in section 40207(a)(5) of 
                        the Infrastructure Investment and Jobs Act (42 
                        U.S.C. 18741(a)(5))), and
                            ``(ii) any of the constituent elements, 
                        materials, or subcomponents contained therein 
                        were produced, manufactured, or assembled by a 
                        foreign entity of concern (as so defined).
                The term `foreign entity of concern' shall include any 
                entity that is directly or indirectly owned by a 
                foreign entity of concern described in subparagraph (C) 
                of section 40207(a)(5) of such Act.''.
    (e) Modification of Electrode Active Material Definition.--
            (1) In general.--Section 45X(c)(5)(B)(i) of such Code is 
        amended--
                    (A) by inserting ``electrode active precursor 
                materials used in the production of cathode and anode 
                materials,'' after ``anode materials,'',
                    (B) by inserting ``binders,'' after ``anode 
                foils,'', and
                    (C) by inserting ``solid state electrolytes,'' 
                after ``including''.
            (2) Electrode active precursor materials.--Section 
        45X(c)(5)(B)(i) of such Code is amended--
                    (A) by striking ``material.--The term'' and 
                inserting the following: ``material.--
                                    ``(I) In general.--The term'', and
                    (B) by adding at the end the following new 
                subclause:
                                    ``(II) Electrode active precursor 
                                material.--The term `electrode active 
                                precursor material' means any of the 
                                following materials which are of a 
                                sufficient grade to meet the purity 
                                specifications to supply the electrode 
                                active materials market: Cobalt 
                                sulfate, manganese sulfate, iron 
                                sulfate, lithium hydroxide, 
                                metallurgical silicon, phosphoric acid, 
                                iron phosphate, nickel manganese cobalt 
                                oxide, graphene, sulfur, synthetic or 
                                natural graphite pitch, or lithium 
                                carbonate.''.
    (f) Certain Silicon Treated as Applicable Critical Material.--
Section 45X(c)(6) of such Code is amended by redesignating 
subparagraphs (T) through (Z) as subparagraphs (U) through (AA), 
respectively, and by inserting after subparagraph (S) the following new 
subparagraph:
                    ``(T) Silicon.--Silicon which is silicon or silicon 
                composite used as an electrode active material in 
                battery anodes.''.
    (g) Effective Date.--The amendments made by this section shall 
apply to components produced and sold after December 31, 2025.
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