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U.S. Lawmakers Propose 25% Battery Tax Credit to Cut Foreign Reliance

May 5, 2025 – February 10, 2026

Lawmakers are pushing to increase battery manufacturing tax credits to 25% while implementing strict North American sourcing requirements. These legislative efforts aim to extend incentives through 2041 and eliminate dependency on prohibited foreign entities by the late 2020s.

Policies— 2 policys

Congress Proposes 25% Tax Credit to Boost U.S. Battery Production and Cut Foreign Reliance

H.R. 7473

Congress Proposes Bigger Battery Manufacturing Tax Credit, With Tougher U.S./Ally Sourcing Rules

H.R. 3200

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