No EV Credits for Idle Allies Act

II 118TH CONGRESS 1ST SESSION S. 1242 To exclude critical minerals that were extracted or processed in certain coun- tries that are providing insufficient levels of assistance to Ukraine from being included for purposes of determining the amount of the clean vehicle tax credit. IN THE SENATE OF THE UNITED STATES APRIL 20, 2023 Mr. COTTON (for himself, Mr. RUBIO, Mr. VANCE, and Mr. HAGERTY) intro- duced the following bill; which was read twice and referred to the Com- mittee on Finance A BILL To exclude critical minerals that were extracted or processed in certain countries that are providing insufficient levels of assistance to Ukraine from being included for pur- poses of determining the amount of the clean vehicle tax credit. 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 ‘‘No EV Credits for 4 Idle Allies Act’’. 5 VerDate Sep 11 2014 00:57 Apr 22, 2023 Jkt 039200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\S1242.IS S1242 kjohnson on DSK79L0C42PROD with BILLS 2 •S 1242 IS SEC. 2. SENSE OF CONGRESS. 1 It is the sense of Congress that the United States 2 does not have any free trade agreement in effect with the 3 European Union or any member country of the European 4 Union. 5 SEC. 3. EXCLUSION OF CRITICAL MINERALS EXTRACTED 6 OR PROCESSED IN CERTAIN COUNTRIES. 7 (a) EXCLUSION.—For purposes of determining the 8 credit under section 30D of the Internal Revenue Code 9 of 1986 with respect to any new clean vehicle (as defined 10 in section 30D(d)(1) of such Code), any applicable critical 11 minerals contained in the battery of such vehicle which 12 were extracted or processed in Germany or France shall 13 not be included for purposes of any determination under 14 section 30D(e)(1)(A) of such Code with respect to such 15 vehicle unless the Secretary of State certifies that the 16 country has, since February 24, 2022, directly provided 17 a cumulative amount of humanitarian, financial, and mili- 18 tary aid to Ukraine which is not less than the cumulative 19 amount of the United States direct commitment of hu- 20 manitarian, financial, and military aid to Ukraine, as 21 measured as a percent of GDP. 22 (b) RECERTIFICATION REQUIREMENT.— 23 (1) IN GENERAL.—If the Secretary of State 24 certifies that Germany or France satisfies the re- 25 quirements under subsection (a), a review of such 26 VerDate Sep 11 2014 00:57 Apr 22, 2023 Jkt 039200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\S1242.IS S1242 kjohnson on DSK79L0C42PROD with BILLS 3 •S 1242 IS certification shall be made not less than annually 1 thereafter for purposes of determining the inclusion 2 or exclusion of applicable critical minerals extracted 3 or processed in France or Germany in the credit cal- 4 culation described in such subsection. 5 (2) FAILURE TO RECERTIFY.—With respect to 6 the review described in paragraph (1), if the Sec- 7 retary of State determines that France or Germany 8 has failed to satisfy the requirements under sub- 9 section (a), the exclusion described in such sub- 10 section with respect to applicable critical minerals 11 which were extracted or processed in such country 12 shall apply for the 12-month period subsequent to 13 such determination, at which time the Secretary of 14 State shall reassess the levels of aid described in 15 such subsection that have been provided. 16 (c) FAILURE TO ATTAIN CERTIFICATION FOR DURA- 17 TION OF WAR IN UKRAINE.—If the Secretary of State 18 cannot make the certification described under subsection 19 (a) with respect to France or Germany for the duration 20 of the Russian war in Ukraine (as determined by the Sec- 21 retary pursuant to subsection (d)), the exclusion described 22 in subsection (a) with respect to applicable critical min- 23 erals which were extracted or processed in such country 24 VerDate Sep 11 2014 00:57 Apr 22, 2023 Jkt 039200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\S1242.IS S1242 kjohnson on DSK79L0C42PROD with BILLS 4 •S 1242 IS shall apply until such time as the government of that 1 country— 2 (1) spends not less than 2 percent of its GDP 3 on defense spending; and 4 (2) with respect to the 2 most recently com- 5 pleted calendar years, has maintained that level of 6 funding. 7 (d) DETERMINATION.—For purposes of subsection 8 (c), the Secretary of State shall, upon determining that 9 the Russian war in Ukraine has concluded, submit a noti- 10 fication to that effect to Congress. 11 (e) DEFINITIONS.—In this section— 12 (1) AID TO UKRAINE.—The term ‘‘aid to 13 Ukraine’’ shall only apply to assistance provided to 14 the Government of Ukraine or for the assistance of 15 individuals within the borders of Ukraine. 16 (2) APPLICABLE CRITICAL MINERALS.—The 17 term ‘‘applicable critical minerals’’ has the same 18 meaning given such term in section 45Z(c)(6) of the 19 Internal Revenue Code of 1986. 20 (3) DIRECTLY PROVIDED.—The term ‘‘directly 21 provided’’, with respect to aid, shall not include any 22 contributions made to the European Union and sub- 23 sequently provided to support Ukraine. 24 VerDate Sep 11 2014 00:57 Apr 22, 2023 Jkt 039200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\S1242.IS S1242 kjohnson on DSK79L0C42PROD with BILLS 5 •S 1242 IS (f) EFFECTIVE DATE.—This section shall apply to 1 vehicles placed in service after the date of enactment of 2 this Act. 3 Æ VerDate Sep 11 2014 00:57 Apr 22, 2023 Jkt 039200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6301 E:\BILLS\S1242.IS S1242 kjohnson on DSK79L0C42PROD with BILLS