Denies the EV tax credit for cars whose batteries use parts from certain foreign entities

§1What it does

Why this matters: A plain-English description of the bill as it was voted on, written by us from the official summary and text.

✎ Drafted by AI from the public sources cited. Each sentence links to its source.

The bill would deny the federal tax credit for new clean vehicles, such as electric cars, if any component of the vehicle's drive battery, or any material in such a component, was mined, processed, recycled, made or assembled by a prohibited foreign entity.^2,3,4 A vehicle would also be ineligible if its battery was made using a process licensed from such an entity under an agreement worth more than $5 million.⁴ Prohibited entities would include those already defined in law as foreign entities of concern, those whose top officers the government of China, Russia, Iran or North Korea can appoint or approve, and those at least 25% owned by those countries or by their citizens, residents or companies.^3,4 The change would apply to vehicles placed in service after the bill became law.⁴

§2Status

§3How Congress voted

Why this matters: The official count.