CMMSA 2.0
House Bill Would More Than Double Battery Manufacturing Tax Credit to 25%, Bar Chinese Materials
Legislative Progress
Key Points
- Congress is proposing a bill to help companies that make batteries in the United States. It would more than double a tax credit—from 10% to 25%—for companies that produce the specific materials used inside batteries, such as those for electric cars and home energy storage.
- To keep the supply chain secure, the bill says companies cannot get this tax break if they use minerals or parts from prohibited foreign entities after 2026. This is meant to encourage companies to find or mine their materials in the U.S. or from friendly countries instead of relying on rivals.
- The bill adds more items to the list of things that qualify for the tax credit. This includes raw ingredients like lithium hydroxide, cobalt sulfate, and silicon. By including these materials, the government hopes to support every step of the manufacturing process from the mine to the finished battery.
- The bill would keep these tax breaks around much longer than originally planned. Instead of starting to disappear in 2030, the full tax credits would stay in place until 2041. This gives companies more certainty to build expensive new factories knowing the financial help will last for many years.
- If passed, these new rules and higher tax credits would start applying to battery parts made and sold after December 31, 2026.
Impact Analysis
Personal Impact
Some rural landowners in areas with critical mineral deposits like lithium or graphite could see new economic activity from expanded mining operations driven by higher tax credits. However, the impact is indirect and limited to a very small number of landowners near potential mining sites.
Milestones
Referred to the House Committee on Ways and Means.
Introduced in House
The bill was officially filed and given a number. It now enters the legislative queue.
Votes
No votes have been recorded for this legislation yet.
Related News
2 articlesBipartisan House Bill Seeks to Double Tax Credits for U.S. Battery Materials
Reps. Raul Ruiz (D-CA) and Gabe Evans (R-CO) have introduced the Critical Minerals and Manufacturing Support Act 2.0 (CMMSA 2.0). The bill aims to more than double the 45X tax credit from 10% to 25% for domestic battery materials like lithium and silicon while tightening anti-China sourcing rules.
US battery production could beat China on cost due to IRA tax credits
Analysis shows that the 45X manufacturing production tax credit is making U.S. battery producers the cheapest in the world, with potential to underprice Chinese competitors by the end of the decade as domestic capacity ramps up.
Source Information
Document Type
Congressional Bill
Official Title
CMMSA 2.0
Data Sources
Sponsor
Cosponsors
(1)Analysis generated by AI. Always verify with official sources.