Congresswoman Carol Miller (R-WV) and Senator Marco Rubio (R-FL) introduced the “Protecting American Advanced Manufacturing Act” aimed at preventing nations, particularly Communist China, from accessing American tax credits that could undermine U.S. interests.
The legislation responds to concerns about foreign entities, including China, taking advantage of tax credits under the Biden Administration’s Inflation Reduction Act. The Act includes the 45X tax credit, where currently, Chinese solar companies, responsible for 97% of all solar wafers, can claim these credits, potentially harming American manufacturers.
Congresswoman Miller criticized the Biden Administration for allowing China access to American tax credits, stating that weak guardrails on the 45X credits give China an unfair advantage, harming American jobs and innovation. She emphasized the need for strategic decoupling from China.
Senator Rubio echoed these concerns, highlighting the prioritization of a climate agenda over national security. The Protecting American Advanced Manufacturing Act aims to ensure that benefits intended for American companies do not inadvertently support adversaries.
Key Points of the Legislation:
– Prevents 45X tax credits from supporting companies owned, controlled, or operated by foreign adversaries like China, Russia, North Korea, and Iran.
– Addresses companies whose management and operations are directly controlled by a foreign adversary.
– Targets entities controlled by foreign adversaries through debt, lease agreements, and contract manufacturing arrangements.
– Takes action against companies controlled by foreign adversaries through shell companies.
Senator Rubio introduced companion legislation in the Senate. The legislation underscores the lawmakers’ commitment to safeguarding U.S. advanced manufacturing from potential exploitation by adversarial nations.
