Bill > HR2871

This bill, called the "Safeguarding U.S. Supply Chains Act", amends the Internal Revenue Code to restrict the advanced manufacturing production credit (a tax incentive designed to encourage domestic manufacturing) for components produced by or connected to "foreign entities of concern" - a term defined in a previous defense authorization act that typically refers to countries like China that are considered strategic competitors. Specifically, the bill prohibits manufacturers from receiving tax credits for eligible components (particularly battery components) that are produced by or use technology from these foreign entities. The restrictions apply to components produced and sold after the date the Act is enacted, effectively creating a disincentive for U.S. companies to rely on manufacturing or technology from certain foreign countries. This legislation aims to strengthen domestic supply chains and reduce dependence on potentially adversarial nations in critical manufacturing sectors like clean energy and battery production.

Budget and Finance

https://www.congress.gov/bill/119th-congress/house-bill/2871/all-info