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HR 2871
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Safeguarding U.S. Supply Chains Act

To amend the Internal Revenue Code of 1986 to restrict the advanced manufacturing production credit with respect to components produced by, or in connection with, foreign entities of concern.

Introduced Apr 10, 2025

Latest action (Apr 10, 2025) Referred to the House Committee on Ways and Means.

Policy area
Issues
Economy & Taxes

Summary

This bill would restrict the advanced manufacturing production tax credit to exclude components produced by foreign entities of concern. The bill defines foreign entities of concern according to the National Defense Authorization Act for Fiscal Year 2021. For battery components specifically, the bill also prohibits the tax credit for components produced using technology designed, developed, manufactured, licensed, or supplied by foreign entities of concern. The restrictions apply to components produced and sold after the bill's enactment. The goal is to ensure that the tax credit supports advanced manufacturing in the United States without involvement of specified foreign entities.

AI-generated plain-language summary of the bill text — neutral, and may be imperfect. See the full text below for the exact wording.

Sponsor (1)

Actions (2)

  1. Apr 10, 2025 Referred to the House Committee on Ways and Means. · house
  2. Apr 10, 2025 Introduced in House

Similar bills (6)

Bills with similar text or summary — includes reintroductions across Congresses. Ranked by semantic similarity of the bill text (computed locally); a neutral discovery aid, not a claim the bills are duplicates.

Text versions (1)

  • Introduced in House · Apr 10, 2025

Only one text version is on file, so there’s no earlier version to compare against yet.

Full text

IN THE HOUSE OF REPRESENTATIVES

April 10, 2025

Mr. Miller of Ohio 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 restrict the advanced manufacturing production credit with respect to components produced by, or in connection with, foreign entities of concern.

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 “Safeguarding U.S. Supply Chains Act”.

SEC. 2. RESTRICTION ON ADVANCED MANUFACTURING PRODUCTION CREDIT WITH RESPECT TO FOREIGN ENTITIES OF CONCERN.

(a) Credit Not Allowed for Components Produced by Foreign Entities of Concern.—Section 45X(d) of the Internal Revenue Code of 1986 is amended by adding at the end the following new paragraph:

“(5) Credit not allowed for components produced by foreign entities of concern.—No credit shall be allowed under this section with respect to any eligible component which is produced by a foreign entity of concern (as defined in section 9901(8) of the William M. Mac Thornberry National Defense Authorization Act for Fiscal Year 2021 (15 U.S.C. 4651(8))).”.

(b) Additional Restrictions With Respect to Qualifying Battery Components.—Section 45X(c)(5) of such Code is amended by adding at the end the following new subparagraph:

“(C) Prohibition on certain involvement of foreign entities of concern.—The term ‘qualifying battery component’ shall not include any battery component produced using technology designed, developed, manufactured, licensed, or supplied by a foreign entity of concern (as defined in section 9901(8) of the William M. Mac Thornberry National Defense Authorization Act for Fiscal Year 2021 (15 U.S.C. 4651(8))).”.

(c) Effective Date.—The amendments made by this section shall apply to components produced and sold after the date of the enactment of this Act. <all>

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