Referred to the House Committee on Ways and Means.
The bill amends Section 45X of the Internal Revenue Code to raise the production tax credit for electrode active materials from 10% to 25%, expand eligible production costs, and broaden the definition of electrode materials and precursors (including certain silicon). It creates phased domestic sourcing rules for applicable critical minerals and qualifying battery components (70%–100% thresholds through 2026–2028+), excludes components tied to "foreign entities of concern," and requires taxpayer certification and related regulations.
Liberals focus on climate jobs and securing supply chains; conservatives stress market distortion.
Relative to its intended legislative type, this bill is a concrete substantive amendment to the Internal Revenue Code that is reasonably well-specified in its core changes (credit percentage, phased sourcing thresholds, definitional additions, and an effective date) while leaving implementation details to the administering agency.
The bill amends Section 45X of the Internal Revenue Code to raise the production tax credit for electrode active materials from 10% to 25%, expand eligible production costs, and broaden the definition of electrode materials and precursors (including certain silicon).
It creates phased domestic sourcing rules for applicable critical minerals and qualifying battery components (70%–100% thresholds through 2026–2028+), excludes components tied to "foreign entities of concern," and requires taxpayer certification and related regulations.
The amendments apply to components produced and sold after December 31, 2025.
Technocratic industrial policy with clear constituency benefits improves prospects, but fiscal cost, trade implications, and Senate thresholds lower overall odds.
Relative to its intended legislative type, this bill is a concrete substantive amendment to the Internal Revenue Code that is reasonably well-specified in its core changes (credit percentage, phased sourcing thresholds, definitional additions, and an effective date) while leaving implementation details to the administering agency.
Liberals focus on climate jobs and securing supply chains; conservatives stress market distortion.
These are examples from the analysis, not a ranked list of the most-affected groups.
Liberals focus on climate jobs and securing supply chains; conservatives stress market distortion.
Likely supportive overall because the bill strengthens domestic clean-energy supply chains, boosts recycling incentives, and restricts reliance on problematic foreign actors.
Would seek stronger labor, environmental, and community protections tied to the incentives.
Some concern about higher domestic-content mandates raising short-term costs and the environmental impacts of expanded domestic extraction.
Viewed as pragmatic industrial policy to secure critical mineral supply chains and grow domestic manufacturing, but judged on cost, implementation feasibility, and trade consequences.
Supportive if regulations are clear and fiscal impacts contained; cautious about rapid content targets creating price shocks or enforcement problems.
Mixed to skeptical: supports supply‑chain security and blocking adversarial actors, but opposes large tax credits and strict domestic-content mandates that distort markets.
Concerned about corporate subsidies, protectionism, and new regulatory burdens on businesses.
Reached or meaningfully advanced
Reached or meaningfully advanced
Still ahead
Still ahead
Still ahead
Technocratic industrial policy with clear constituency benefits improves prospects, but fiscal cost, trade implications, and Senate thresholds lower overall odds.
The bill has not accumulated any surfaced votes yet.
Liberals focus on climate jobs and securing supply chains; conservatives stress market distortion.
Technocratic industrial policy with clear constituency benefits improves prospects, but fiscal cost, trade implications, and Senate thresho…
Relative to its intended legislative type, this bill is a concrete substantive amendment to the Internal Revenue Code that is reasonably well-specified in its core changes (credit percentage, phased sourcing thresholds,…
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