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What we're watching: 45X tweaks

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Mar 13, 2024
Sen. Sherrod Brown

Brown last week. Photo: Al Drago/Bloomberg via Getty Images

Simmering concern on the Hill about implementation of the IRA's advanced manufacturing incentive could turn into a real legislative push — but not immediately.

Why it matters: Sen. Sherrod Brown wants to block companies associated with "foreign entities of concern" — namely China — from getting the 45X credit, as we wrote yesterday.

  • It's the kind of policy we could see a lame duck or future Republican Congress pursue in lieu of full IRA repeal.

Zoom in: From a hallway chat with Brown and his staff yesterday, it doesn't sound as if he has his own legislation ready for prime time yet.

  • "We want these companies that are getting tax incentives to actually produce here, not just assemble here, not just import from 12 countries and get a tax break when they do the assembly here," Brown told reporters.
  • Sen. Marco Rubio and Rep. Carol Miller floated a GOP bill in December that would disqualify companies who have 10% or more of their equity interests controlled by a foreign adversary.
  • It also includes broad language that would block companies "directly or indirectly controlled, directed, or materially influenced" by foreign adversaries from getting the 45X credit.

The bottom line: This 45X maneuvering is worth your attention, especially considering the Hill hubbub about China lately (see: the TikTok bill).

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