119-hr3200

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

    (IH) ]

<DOC>

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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