Lawmakers sparred on Capitol Hill before passing a bill that would prevent banned foreign companies from receiving U.S. tax credits on electric vehicles.
The Republican-introduced “Bill to End Chinese Companies' Dominance in Electric Vehicles” was debated in the House of Representatives on Thursday and passed with seven Democrats voting in favor.
This bill: The Internal Revenue Code of 1986 excludes electric vehicle batteries sourced from foreign entities of concern (FEOCs), such as China, from the clean vehicle tax credit. This law tightens the FEOC definition for the 30D electric vehicle (EV) tax credit, preventing companies that partner with these entities from benefiting from the tax credit.
Ahead of the vote on the bill, Republican backers of the bill urged their fellow senators to “choose American taxpayers over Chinese billionaires.”
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Rep. Carol Miller introduced the “Ending Chinese Dominance in Electric Vehicles Act” in April 2024. (Bill Clark/Getty Images)
Rep. Carol Miller (D-Va.), who introduced the bill in April, said the bill would “close the Chinese loophole” by denying wealthy Chinese citizens access to EV subsidies. The bill passed with a vote of 217 to 192.
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Rep. Jason Smith (R-Mo.) pointed to Vice President Kamala Harris' tiebreaking runoff vote on a 2022 inflation-fighting bill that would have provided tax incentives for electric vehicles.
“For years, the Chinese Communist Party has done everything in its power to dominate the electric vehicle market,” Smith said on the House floor. “Now, using American taxpayer dollars, the Harris-Biden Administration is seeking to further China's dominance in the EV market.”
A Chevrolet Bolt charges at a gas station on Tuesday, Sept. 3, 2024, in Hudson, New York. (Angus Mordaunt/Getty Images)
Smith has clashed sharply with the bill's Democratic critics, calling a fiery speech by Rep. Debbie Dingell (D-Mich.) opposing the bill “bullshit.”
Democrat Rep. Judy Chu of California called the bill “another Republican pretense to weaken the Anti-Inflation Act,” while Democrat Rep. Dan Kildee of Michigan argued that “this bill will make it harder to compete with China.”
Senator Dingell made a motion to reconsider the bill. (Al Drago)
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Senator Dingell made a motion to recommit the bill to the Committee on Ways and Means, but it was not passed by a yea-nay vote.
Fox News' Morgan Phillips contributed to this report.
