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Congress·In Committee·10 months ago

House Bill Would Boost Battery Manufacturing Tax Credit to 25%, Require Minerals From U.S. Allies

Also known as: Critical Minerals and Manufacturing Support Act

Legislative Progress

✓ Filed
Review
House
Senate
President

Key Points

  • Raises the tax credit for making key battery “active materials” from 10% to 25%, which could make more battery factories pencil out financially.
  • Counts more costs toward the credit, including raw materials and the cost to extract materials from the ground or recover them from waste.
  • Adds “buy-from-allies/North America” rules: to get the credit, battery minerals must meet 70% in 2026 and 80% after 2026 from the U.S., free-trade partners, or North American recycling.
  • Adds North America content rules for battery parts: 70% in 2026, 80% in 2027, 90% in 2028, and 100% after 2028, or the credit is not allowed.
  • Blocks the credit if minerals or parts are tied to certain “foreign entities of concern,” and expands the list of battery materials (including some silicon uses).
TaxesTradeEnergyInfrastructure

Milestones

2 milestones2 actions
May 5, 2025House

Referred to the House Committee on Ways and Means.

May 5, 2025

Introduced in House

What Happens Next

Projected impacts based on AI analysis

Likely before or during 2026 filing and compliance cycles

Treasury/IRS issues updated guidance and forms for how companies certify sourcing percentages and excluded-entity rules

The details of paperwork and proof (what counts, what records are needed) will affect how easily companies can claim the credit and how quickly projects move

Related News

4 articles
Axios·17 days ago

Bipartisan House Bill Seeks to Double Tax Credits for U.S. Battery Materials

Reps. Raul Ruiz and Gabe Evans introduced the Critical Minerals and Manufacturing Support Act 2.0 to double the 45X tax credit from 10% to 25% for domestic battery materials like lithium and silicon while tightening anti-China sourcing rules to ensure supply chain security.

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S&P Global·about 2 months ago

U.S. Renewables and Battery Sectors Prepare for Strict 2026 Supply Chain Rules

The battery industry is bracing for new Foreign Entity of Concern (FEOC) rules and sourcing requirements starting in 2026, as proposed in the Critical Minerals and Manufacturing Support Act, which mandates 70% domestic or allied sourcing for critical minerals.

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Politico·10 months ago

Morning Energy: UP TO BATT FOR BATTERIES

A new coalition is pushing to bolster government support for the U.S. battery minerals industry, coinciding with the introduction of the Critical Minerals and Manufacturing Support Act by Reps. Ruiz and Evans to expand the 45X credit and implement strict sourcing rules.

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Source Information

Document Type

Congressional Bill

Official Title

Critical Minerals and Manufacturing Support Act

Bill NumberHR 3200
Congress119th Congress
ChamberHouse of Representatives
Latest ActionReferred to the House Committee on Ways and Means.

Sponsor

Cosponsors

(2)
D: 1R: 1

Analysis generated by AI. While we strive for accuracy, this should not be considered legal or professional advice. Always verify information with official government sources.