S.Amdt. 2734

Mr. Heinrich submitted amendment SA 2734 to change section 70514 of the bill. The purpose of this amendment is to place phase-outs, restrictions, and modifications on the advanced manufacturing production credit.

Here is what the amendment aims to change or add to the bill:

• Sale of integrated components: It updates the rules for when a person is treated as having sold an eligible component to an unrelated person. This includes when a primary component is built into a secondary component in the same facility, and the secondary component is sold. It also adds a requirement that at least 65 percent of the direct material costs for the secondary component must come from primary components mined, produced, or manufactured in the United States.

• Phase out and termination: It adds a phase-out schedule for applicable critical minerals produced after December 31, 2030, reducing the credit amount down to 0 percent after December 31, 2033. It also adds a termination for wind energy components, making the section not apply to any wind energy component produced and sold after December 31, 2027.

• Restrictions on foreign entities: It excludes any property that includes material assistance from a prohibited foreign entity from being considered an eligible component. It also blocks taxpayers who are specified foreign entities or foreign-influenced entities from receiving any credit.

• Battery module definition: It expands the definition of a battery module to include essential equipment needed for battery functionality, such as current collector assemblies, voltage sense harnesses, and thermal collection assemblies.