[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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