Safeguarding U.S. Supply Chains Act

This bill would tighten who can get the federal “advanced manufacturing” tax credit for making components in the U.S. It blocks the credit for any component made by a “foreign entity of concern,” and it also blocks the credit for battery parts made using technology that was designed, developed, made, licensed, or supplied by such an entity. These terms come from existing law; the goal is to keep taxpayer support away from supply chains tied to certain foreign governments or companies.

It would take effect for components produced and sold after the bill becomes law.

• Who is affected: Manufacturers seeking the Section 45X advanced manufacturing production credit, especially battery makers.
• What changes: No credit for components produced by foreign entities of concern; no credit for battery components if their tech comes from such entities.
• When: Applies to components produced and sold after enactment.