Miller’s bill aims to end China’s dominance over electric vehicles

U.S. Rep. Carol Miller (R-WV) on Monday sponsored legislation that would exclude electric vehicles (EVs) having batteries that contain materials sourced from prohibited foreign entities from receiving the clean vehicle credit.

“Congress must lead when Joe Biden refuses to,” Rep. Miller said, noting that the bill “will close key loopholes in Treasury’s EV credit guidance to ensure American tax dollars are kept here at home, and not in the pockets of our strategic adversaries.”

If enacted, the End Chinese Dominance of Electric Vehicles in America Act of 2024, H.R. 7980, would tighten the Foreign Entity of Concern definition for the 30D EV tax credit and prohibit Chinese companies from accessing U.S. tax dollars, according to a bill summary provided by Rep. Miller’s staff.

“China, or any adversary for that matter, should not have any access to American tax credits,” said Rep. Miller. “Narrowing the definition of the Foreign Entity of Concern expands opportunities for American manufacturing while protecting our resources and our people.”

Specifically, H.R. 7980 would close the so-called “billionaire loophole,” which would allow wealthy Chinese business owners to directly receive American tax dollars if they invest in American EV projects, the summary says.

The bill also would close 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.

On April 16, H.R. 7980 gained four cosponsors, including U.S. Rep. Mike Kelly (R-PA).