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US lawmakers propose a new bill to prevent Chinese companies from enjoying EV tax benefits

Publish Date: 2024.04.19

  According to foreign media reports, US House of Representatives Congressman Carol Miller announced a new bill on April 15th - End Chinese Dominance of Electric Vehicles in America Act of 2024. According to a press release, the bill aims to standardize the definition of 30D electric vehicle tax credits for foreign entities and prevent Chinese companies from obtaining US tax benefits.


  Last September, the US Department of Commerce issued rules defining foreign entities in the semiconductor supply chain. Last December, the US Treasury Department issued a similar electric vehicle tax credit guideline, but the US believes that the legislation has loopholes that allow Chinese entities to enjoy tax benefits in the US. Miller's bill has blocked these loopholes and prevented Chinese companies from receiving US taxes when investing in US electric vehicle projects.


  Miller stated in a press release that "neither China nor any of its competitors should receive tax breaks from the United States." The press release shows that the bill is a continuation of Miller's efforts to protect advanced manufacturing in the United States and US tax incentives.


  Image source: Reuters


  Chinese electric vehicles are seen by the United States as a threat to the country's automotive industry. Last week, Sherrod Brown, Chairman of the Senate Banking Committee and Ohio Senator, pleaded with President Joe Biden to prevent Chinese made cars from entering the US market.


  Sherrod called for "prompt" action, stating that "China's electric vehicles pose a life-threatening threat to the US automotive industry." He wrote, "I earnestly request that you take bold and proactive action to permanently ban electric vehicles produced by Chinese companies or any subsidiary established to cover up their origin."


  In March of this year, the US Department of Commerce began investigating whether cars imported from China posed a threat to US national security. In addition, two Republican senators have proposed legislation to raise tariffs on Chinese cars. Last November, a bipartisan group of lawmakers urged US Trade Representative Katherine Tai to raise tariffs on Chinese cars.


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