H.R.3200 - Critical Minerals and Manufacturing Support Act (119th Congress)
Summary
H.R. 3200, the Critical Minerals and Manufacturing Support Act, aims to modify the advanced manufacturing credit in the Internal Revenue Code of 1986, specifically concerning the production of battery components. The bill seeks to incentivize domestic and free trade agreement-based sourcing of critical minerals and battery components by increasing the advanced manufacturing production credit for electrode active materials from 10% to 25%. It also introduces sourcing requirements for qualifying battery components and applicable critical minerals to be eligible for the credit.
Expected Effects
The likely effect of this bill is to stimulate domestic production and recycling of critical minerals and battery components. It will also encourage manufacturers to source materials from the United States or countries with which the U.S. has free trade agreements. This could lead to a more secure and resilient supply chain for battery production, reducing reliance on foreign entities of concern.
Potential Benefits
- Increased domestic production of battery components and critical minerals.
- Creation of jobs in the manufacturing and recycling sectors.
- Reduced reliance on foreign entities of concern for critical minerals.
- Strengthened supply chains through sourcing from the U.S. and free trade partners.
- Incentivizes innovation in battery technology and manufacturing processes.
Potential Disadvantages
- Increased costs for manufacturers due to sourcing requirements, potentially leading to higher prices for consumers.
- Potential trade disputes with countries that are not free trade partners of the U.S.
- Complexity in tracking and certifying the origin of critical minerals and battery components.
- Possible delays in battery production due to sourcing constraints.
- The regulations may be difficult to implement and enforce effectively.
Constitutional Alignment
The bill appears to align with the Commerce Clause (Article I, Section 8, Clause 3) of the U.S. Constitution, which grants Congress the power to regulate commerce with foreign nations and among the several states. By incentivizing domestic production and trade with free trade partners, the bill seeks to promote economic activity within the U.S. and with its allies. The bill does not appear to infringe upon any individual liberties or rights protected by the Bill of Rights.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).