Moolenaar, Golden Introduce Bipartisan Bill to Block Biden Rule That Allows Tax Credits for Foreign Adversaries

Today, Congressmen John Moolenaar, and Jared Golden (D-ME) introduced bipartisan legislation to block the implementation of the Biden administration’s recently finalized Treasury rule on the section 45X advanced manufacturing production tax credit. The rule, as currently written, would allow CCP-affiliated companies like Gotion to receive American tax dollars for producing battery components. The legislation uses the Congressional Review Act, which gives Congress the authority to disapprove regulations from the executive branch. 

“Under no circumstance should the CCP be allowed to benefit from the tax dollars of hardworking American families. Unfortunately, the Biden administration's 45X rule has left the door open for CCP-affiliated companies, like Gotion, to reap billions in taxpayer funding. That’s wrong and the commonsense bipartisan legislation we are introducing today will stop it," said Moolenaar.

“America must be a nation of producers, not just consumers,” said Golden. “That’s the goal of domestic manufacturing credits: to support America’s production economy. But the Biden administration has consistently included loopholes in rulemaking that allow foreign-owned companies — including those with ties to adversarial foreign governments — to benefit from preferential tax treatment intended for American firms. The administration needs to go back to the drawing board and ensure they are not subsidizing our global competitors.”

If Moolenaar and Golden’s legislation is passed by the House of Representatives, the Senate, and signed by the President within 60 legislative days of the section 45X rule being released by the executive branch, the rule would be ended.

Moolenaar previously introduced the NO GOTION ACT, which would prevent companies based in China, Russia, Iran, or North Korea, and the subsidiaries of those companies, from qualifying for tax credits created by the Inflation Reduction Act, including 45X.

The text of Moolenaar and Golden’s resolution can be found here.