The Inflation Reduction Act of 2022 created an Advanced Manufacturing Production Tax Credit (45X) to bolster domestic production of equipment, components and critical materials related to clean and renewable energy. These tax credits have contributed to the largest investments in factory production in nearly 100 years. But without action from Congress, it is estimated that Chinese-controlled companies could collect more than $100 billion in federal tax credits that were instead designed to support US clean-energy manufacturers.
The American Tax Dollars for American Solar Manufacturing Act, introduced today by Sens. Sherrod Brown (D-OH), Bill Cassidy (R-LA), Jon Ossoff (D-GA) and Rick Scott (R-FL), would ensure that companies controlled by China and other unfriendly foreign countries (known as “foreign entities of concern”) would not be able to receive the 45X tax credits.
“We shouldn’t be in the business of rewarding China at the expense of our domestic solar industry” said US Army General John Adams (retired), and Board Member of the Defend Solar USA Alliance. “The bipartisan bill would ensure that Americans’ taxpayer dollars stay right here at home rather than help subsidise a foreign government’s efforts to put domestic manufacturers out of work. By building a successful domestic solar industry, the US can break from its reliance on foreign energy sources, strengthen our supply chain and reduce our vulnerability to geopolitical conflicts.”
The Alliance also believes that Congress and the Biden-Harris Administration must also take decisive action to stop China from violating US trade laws by dumping solar panels often made with forced labour into the American market at depressed prices, making it nearly impossible for US manufacturers to compete.
In addition to passing this legislation, the Commerce Department and US International Trade Commission must continue their investigation without undue interference into the antidumping cases filed by the American Alliance for Solar Manufacturing Trade Committee.
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