Recently, US Congressmen John Moolenaar and Jared Golden planned to prevent the implementation of the 45X advanced manufacturing production tax credit through legislation of both parties, to prevent Chinese companies from getting these tax credit subsidies.

It is reported that as part of the inflation Reduction Act (IRA), article 45X was first promulgated in 2022, which is photovoltaic and wind power components, inverter, battery module in energy storage system, american manufacturing such as key minerals provides production tax credits. Clean energy equipment manufacturers in the United States have the right to obtain incentives linked to production in accordance with ACT 45X. Generally speaking, the tax credit will gradually decrease from 2030 to 2032, except for key minerals. The specific subsidy credit line varies according to the product field produced and sold.

On October 24, 2024, the U.S. Treasury Department and the U.S. Internal Revenue Service issued the final rules of Article 45X of the domestic tax code on the credit for advanced manufacturing.

There have been previous comments that require policies to clarify the limits of energy storage cell, energy storage battery pack, and energy storage system. Some comments point out that energy storage products must be installed on site, therefore, there is some controversy on the boundary of tax relief. In addition, some comments raised objections to the benefits of tax relief and subsidies for energy storage materials. The U.S. Treasury Department and the Internal Revenue Service rejected the suggestion that although electrode active materials must be used in energy storage batteries, however, if these materials can also be used in other fields such as hydrogen fuel cells, they are still eligible for the credit of article 45X.

However, the kWh conversion cannot exceed Hot <a href = "https://power-ing.com/Product-Center.html"> Battery the total installed capacity of the module is directly converted to kWh (the capacity sold to consumers). Taxpayers applying for the article 45X credit must consistently use the same method and comply with any updated standards of the same method and test, battery Modules (with or without batteries) sold in taxpayer trade or business. The final regulation incorporated these clarification into & Section; 1.45X-3(e)(4)(ii), involving the testing and methods of battery modules. At present, the 45X rule will allow all Chinese enterprises produced in the United States to obtain American taxes, including those similar to Ningde era and Guoxuan Gaoke.

According to relevant regulations, the final regulations will take effect 60 days after they are published. However, recently, members of the United States Congress raised another objection to this.

U.S. Congressmen John Moolenaar and Jared Golden believe that this policy means that Chinese companies that produce battery components will be allowed to obtain U.S. taxes.

Before Moolenaar, NO GOTION ACT was introduced, which plans to prevent companies headquartered in China, Russia, Iran or North Korea and their subsidiaries from obtaining the inflation Reduction ACT (IRA). Any tax credit qualification under, including Bill 45X. Moolenaar said, "the 45X rule of the Biden government opens the door for Chinese companies like Guoxuan Gaoke to get billions of dollars from taxpayers, which is wrong, the legislation we proposed today will prevent it."