CMMSA 2.0
Summary
What This Bill Does
The bill modifies the advanced manufacturing production credit for battery-related critical minerals and components. It raises the section 45X percentage for the affected category from 10 percent to 25 percent, excludes materials, cells, or modules containing critical minerals extracted, processed, or recycled by a prohibited foreign entity after December 31, 2026, expands covered materials to include electrode active precursor materials such as cobalt sulfate, lithium hydroxide, graphite pitch, lithium carbonate, and others, adds silicon used in battery anodes, and extends phaseout dates from the early 2030s to 2041 through 2044.
Who Benefits and How
Domestic battery manufacturers, critical mineral processors, electrode active material producers, silicon anode suppliers, and U.S. clean-energy supply chains benefit from a larger and longer-lived production credit. Firms using non-prohibited supply chains receive a stronger incentive to source eligible critical minerals domestically or from trusted partners. Manufacturing communities may benefit if the higher credit supports more battery-material production and processing capacity.
Who Bears the Burden and How
Treasury and IRS must administer a broader and longer section 45X credit, define and verify electrode active precursor materials, and police the prohibited foreign entity exclusion after 2026. Battery manufacturers and critical mineral processors must document supply chains to avoid prohibited foreign entity inputs. Prohibited foreign entity suppliers lose access to credit-supported demand for covered materials, cells, or modules.
Key Provisions
- Raises the affected section 45X advanced manufacturing production credit percentage from 10 percent to 25 percent.
- Excludes battery materials, cells, and modules containing critical minerals from prohibited foreign entities after December 31, 2026.
- Adds electrode active precursor materials including lithium hydroxide, cobalt sulfate, graphite pitch, and lithium carbonate.
- Adds silicon used as battery-anode electrode active material.
- Extends section 45X phaseout years to 2041 through 2044 for covered components.
Evidence Chain:
This summary is generated from the full bill text using AI analysis. Expand "Detailed Analysis" below for identified beneficiaries/burden bearers with clause-level evidence links.
At a Glance
What This Bill Does
Expands the section 45X advanced manufacturing production credit for battery and critical-mineral supply chains by raising the critical-mineral percentage from 10 percent to 25 percent, adding precursor and silicon materials, excluding prohibited foreign entity inputs after 2026, and extending phaseout dates to 2041-2044.
Key Policy Areas
tax, manufacturing, critical_minerals, energy
Primary Purpose
Expands the section 45X advanced manufacturing production credit for battery and critical-mineral supply chains by raising the critical-mineral percentage from 10 percent to 25 percent, adding precursor and silicon materials, excluding prohibited foreign entity inputs after 2026, and extending phaseout dates to 2041-2044.
Policy Domains
Substantive provisions
Identified Gains
- Domestic battery manufacturers
- Critical mineral processors
- Electrode active material producers
- Silicon anode suppliers
- Manufacturing workers
Identified Costs
- Treasury Department
- Internal Revenue Service
- Battery manufacturers
- Critical mineral processors
- Prohibited foreign entity suppliers
Sponsors
Raul Ruiz
D-CA | Primary Sponsor
Legislative Progress
In CommitteeReferred to the House Committee on Ways and Means.
Introduced in House
Mr. Ruiz (for himself and Mr. Evans of Colorado) introduced …
Stakeholder Effects
cui bono?How this legislation distributes effects. Mention counts reflect frequency, not effect magnitude.
Domestic battery manufacturers, Electrode active material producers, Silicon anode suppliers
Bill Structure & Actor Mappings
Who is "The Secretary" in each section?
- "agencies"
- → ['Treasury Department', 'Internal Revenue Service']
- "beneficiaries"
- → ['Domestic battery manufacturers', 'Critical mineral processors', 'Manufacturing workers']
Key Definitions
Terms defined in this bill
We use a combination of our own taxonomy and classification in addition to large language models to assess meaning and potential beneficiaries. High confidence means strong textual evidence. Always verify with the original bill text.
Learn more about our methodology