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

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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