H.R. 3200

119th CONGRESS 1st Session

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 · Sponsor: Mr. Ruiz · Committee: Committee on Ways and Means

Table of contents

• H.R. 3200
  • SEC. 1. Short title
  • SEC. 2. Modification of advanced manufacturing production credit relating to battery production

SEC. 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
  • of the Internal Revenue Code of 1986 is amended by striking 10 percentand inserting 25 percent. Section 45X(b)(1)(J)
• (b) Special rules relating to production of electrode active materials
  • (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.
  • Section 45X(b) of such Code is amended by adding at the end the following new paragraph:
• (c) Sourcing requirements with respect to qualifying battery components and applicable critical minerals
  • (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—
          • in the United States, or
          • 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.
  • Section 45X of such Code is amended by adding at the end the following new subsection:
• (d) Excluded entities
  • (C) Excluded entities
    • The term shall not include any qualifying battery component with respect to which— eligible component
      • (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 ()), and 42 U.S.C. 18741(a)(5)
      • (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 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. foreign entity of concern
  • Section 45X(c)(1) of such Code is amended by adding at the end the following new subparagraph:
• (e) Modification of electrode active material definition
  • Section 45X(c)(5)(B)(i) of such Code is amended—
• (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.