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Friday, September 20, 2024

House passes act targeting China's influence on U.S. electric vehicle market

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Rep. Carol Miller, U.S. Representative for West Virginia 1st District | Official U.S. House headshot

Rep. Carol Miller, U.S. Representative for West Virginia 1st District | Official U.S. House headshot

Today, Congresswoman Carol Miller’s (R-WV) bill, the End Chinese Dominance of Electric Vehicles in America Act of 2024, passed the House of Representatives. Congresswoman Miller introduced this bill to tighten the Foreign Entity of Concern (FEOC) definition for the 30D electric vehicle (EV) tax credit and prohibit Chinese companies from accessing U.S. tax dollars.

“The End Chinese Dominance of Electric Vehicles in America Act takes steps to ensure that Chinese companies can no longer benefit from Electric Vehicles tax credits meant for U.S. manufacturers. The Biden-Harris administration has put out regulations on the electric vehicle tax credit that have excluded some of the inputs used to make EVs, giving China unlimited access to the U.S. supply chain. This is devastating for American manufacturers and our national security. I'm thrilled this bill has passed in the House of Representatives to stop Chinese influence in our supply chain,” said Congresswoman Carol Miller.

“American taxpayer dollars should not be used for an electric vehicle credit in an industry propped up by China. I commend Congresswoman Miller’s leadership in keeping China out of American electric vehicle production,” said Speaker Mike Johnson.

In April, Congresswoman Miller introduced the End Chinese Dominance of Electric Vehicles in America Act of 2024.

In September 2023, the Commerce Department issued rules that defined a Foreign Entity of Concern (FEOC) when it comes to the semiconductor supply chain. In December 2023, The Department of Treasury issued similar FEOC guidance for the EV tax credit but left glaring loopholes that would allow Chinese entities to capture American tax dollars.

Specifically, the bill closes the ‘Billionaire Loophole,’ which would allow wealthy Chinese business owners to directly receive American tax dollars if they invest in American EV projects and closes the ‘Chinese Manufacturing Loophole,’ which would prevent China from leveraging its battery supply chain dominance to produce upstream materials, parts, and intellectual properties that are eligible for the 30D credit.

The bill is a continuation of Congresswoman Miller’s efforts to protect American advanced manufacturing to ensure that nations who aim to weaken the United States, including China, do not receive American tax credits.

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