CMMSA 2.0

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.