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House Passes Bill to Tighten EV Tax Credit Rules Targeting Chinese Components

The legislation aims to prevent foreign entities of concern from benefiting from U.S. electric vehicle subsidies.

A man wipes the floor near the Toyota Prius PHEV and Toyota BZ4X during the Indonesia International Auto Show in Tangerang, Indonesia, July 18, 2024. REUTERS/Ajeng Dinar Ulfiana/File Photo
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(Chip Somodevilla/Getty Images)

Overview

  • The U.S. House of Representatives approved the End Chinese Dominance of Electric Vehicles Act with a 217-192 vote.
  • The bill seeks to exclude EV batteries sourced from foreign entities of concern, like China, from U.S. tax credits.
  • Seven Democrats joined Republicans in supporting the bill, which now awaits Senate consideration.
  • Critics argue the bill could reduce the number of vehicles eligible for tax credits and impact emission targets.
  • The Biden administration opposes the bill, claiming it would raise taxes, threaten jobs, and undermine efforts to combat climate change.