What This Bill Does
This bill expands rules for the clean vehicle credit (a tax benefit for buying electric vehicles) by blocking battery components made by certain foreign-connected companies. It also blocks tax credits for advanced energy manufacturing projects that use technology licensed from those same foreign-connected companies.
Who It Affects
Electric vehicle buyers who claim the clean vehicle credit. Companies that manufacture or assemble vehicle batteries. Companies seeking tax credits for advanced energy manufacturing projects.
Key Provisions
• Battery components cannot come from a domestic corporation controlled by or substantially influenced by a foreign entity of concern, or from a domestic corporation that uses technology licensed from such a foreign entity (Sec. 2(a))
• Battery components cannot come from a foreign corporation created outside approved countries that is controlled by a foreign entity of concern, relies on technology licensed from one, or is more than 20 percent owned by one or more foreign entities of concern (Sec. 2(a))
• Battery components cannot come from any member of a joint venture or partnership that includes at least one foreign entity of concern as a partner (Sec. 2(a))
• Advanced energy manufacturing projects cannot use technology licensed from the foreign-connected corporations listed above (Sec. 3(a))
What Changes
If this becomes law, electric vehicles with battery components made by the prohibited companies would not qualify for the clean vehicle credit. Projects seeking advanced energy manufacturing tax credits cannot license technology from the prohibited companies.
Important Definitions
"Foreign entity of concern": Not explicitly defined in this bill text. The bill refers to the definition in another law (Infrastructure Investment and Jobs Act).
Effective Date
The vehicle credit changes apply to vehicles sold after the bill becomes law (Sec. 2(b)). The manufacturing project credit changes apply to certifications awarded after the bill becomes law (Sec. 3(b)).
II
118TH CONGRESS
1ST SESSION
S. 756
To amend the Internal Revenue Code of 1986 to expand prohibitions under
the clean vehicle credit on battery components manufactured or assem-
bled by corporations associated with foreign entities of concern, and
for other purposes.
IN THE SENATE OF THE UNITED STATES
MARCH 9, 2023
Mr. RUBIO introduced the following bill; which was read twice and referred
to the Committee on Finance
A BILL
To amend the Internal Revenue Code of 1986 to expand
prohibitions under the clean vehicle credit on battery
components manufactured or assembled by corporations
associated with foreign entities of concern, and for other
purposes.
Be it enacted by the Senate and House of Representa-
1
tives of the United States of America in Congress assembled,
2
SECTION 1. SHORT TITLE.
3
This Act may be cited as the ‘‘Restricting Electric
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Vehicle Outlays from Kleptomaniac Enemies Act of 2023’’
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or the ‘‘REVOKE Act of 2023’’.
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•S 756 IS
SEC. 2. PROHIBITION ON BATTERY COMPONENTS MANU-
1
FACTURED OR ASSEMBLED BY CORPORA-
2
TIONS ASSOCIATED WITH FOREIGN ENTITIES
3
OF CONCERN.
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(a) IN GENERAL.—Subparagraph (B) of section
5
30D(d)(7) of the Internal Revenue Code of 1986 is
6
amended by striking ‘‘manufactured or assembled by a
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foreign entity of concern (as so defined).’’ and inserting
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the following: ‘‘manufactured or assembled by—
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‘‘(i) a foreign entity of concern (as so
10
defined),
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‘‘(ii) a domestic corporation which—
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‘‘(I) is controlled by, operated by,
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or under the substantial influence of a
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foreign entity of concern, or
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‘‘(II) relies on technology pro-
16
vided through a licensing agreement
17
with a foreign entity of concern,
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‘‘(iii) a foreign corporation—
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‘‘(I) which is created or orga-
20
nized in a country which is not de-
21
scribed in section 40207(a)(5)(C) of
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the Infrastructure Investment and
23
Jobs Act (42 U.S.C. 18741(a)(5)(C)),
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and
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‘‘(II) which—
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•S 756 IS
‘‘(aa) is controlled by, oper-
1
ated by, or under the substantial
2
influence of a foreign entity of
3
concern,
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‘‘(bb) relies on technology
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provided
through
a
licensing
6
agreement with a foreign entity
7
of concern, or
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‘‘(cc) is owned more than 20
9
percent by 1 or more foreign en-
10
tities of concern, or
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‘‘(iv) any member or partner of a
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joint venture or partnership in which at
13
least 1 other member or partner is a for-
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eign entity of concern.’’.
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(b) EFFECTIVE DATE.—The amendment made by
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this section shall apply to vehicles sold after the date of
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enactment of this Act.
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SEC. 3. PROHIBITION ON TECHNOLOGY LICENSED FROM
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CORPORATIONS ASSOCIATED WITH FOREIGN
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ENTITIES OF CONCERN.
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(a) IN GENERAL.—Subparagraph (B) of section
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48C(c)(1) of the Internal Revenue Code of 1986 is amend-
23
ed to read as follows:
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•S 756 IS
‘‘(B) EXCEPTION.—Such term shall not in-
1
clude—
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‘‘(i) any portion of a project for the
3
production of any property which is used
4
in the refining or blending of any transpor-
5
tation fuel (other than renewable fuels), or
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‘‘(ii) any project which incorporates or
7
utilizes technology provided through a li-
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censing agreement with an entity described
9
in clauses (i) through (iv) of section
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30D(d)(7)(B).’’.
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(b) EFFECTIVE DATE.—The amendment made by
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this section shall apply to certifications awarded under
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section 48C of the Internal Revenue Code of 1986 after
14
the date of enactment of this Act.
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Æ
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