,i #aaith ,,congress #ast ,session ,h4 ,r4 #cbjj ,,in ,,the ,,house ,,of ,,representatives ,may #e1 #bjbe,mr4 ,ruiz 7for himself and ,mr4 ,evans of ,colorado7 introduced the following bill2 which was referred to the ,committee on ,ways and ,means ,a ,,bill ,to amend the ,internal ,revenue ,code of #aihf to modify the advanced manufacturing credit with respect to the production of battery components4 #a4 ,short title ,this ,act may be cited as the ,critical ,minerals and ,manufacturing ,support ,act4 #b4 ,modification of advanced manufacturing production credit relating to battery production 7a7 ,increase in credit amount for electrode active materials ,section #de,x7b77#a77;,j7 of the ,internal ,revenue ,code of #aihf is amended by striking #aj percent and inserting #be percent4 7b7 ,special rules relating to production of electrode active materials ,section #de,x7b7 of such ,code is amended by adding at the end the following new paragraph3 7#e7 ,special rules relating to electrode active materials 7,a7 ,production costs ,the production of electrode active materials shall include the cost of raw materials1 including material extraction from geological sources or waste products4 4 7c7 ,sourcing requirements with respect to qualifying battery components and applicable critical minerals ,section #de,x of such ,code is amended by adding at the end the following new subsection3 7e7 ,critical mineral and battery component sourcing requirements 7#a7 ,applicable critical minerals 7,a7 ,in general ,no credit shall be allowed under this section with respect to a qualifying battery component unless the percentage of the value of the applicable critical minerals contained therein that were-- 7i7 extracted or processed-- 7,i7 in the ,united ,states1 or 7,,ii7 in any country with which the ,united ,states has a free trade agreement in effect1 or 7ii7 recycled1 and reintegrated into the supply chain1 in ,north ,america1 is at least equal to the applicable percentage 7as certified by the taxpayer in such form or manner as prescribed by the ,secretary74 7,b7 ,applicable percentage ,for purposes of subparagraph 7,a71 the applicable percentage shall be-- 7i7 in the case of any qualifying battery component sold to an unrelated person during calendar year #bjbf1 #gj percent1 and 7ii7 in the case of any qualifying battery component sold to an unrelated person after ,december #ca1 #bjbf1 #hj percent4 7#b7 ,qualifying battery components 7,a7 ,in general ,no credit shall be allowed under this section with respect to a qualifying battery component unless the percentage of the value of the constituent elements1 materials1 and subcomponents contained therein that were produced1 manufactured1 or assembled in ,north ,america is at least equal to the applicable percentage 7as certified by the taxpayer1 in such form or manner as prescribed by the ,secretary74 7,b7 ,applicable percentage ,for purposes of subparagraph 7,a71 the applicable percentage shall be-- 7i7 in the case of qualifying battery components sold to an unrelated person during calendar year #bjbf1 #gj percent1 7ii7 in the case of qualifying battery components sold to an unrelated person during calendar year #bjbg1 #hj percent1 7iii7 in the case of qualifying battery components sold to an unrelated person during calendar year #bjbh1 #ij percent1 and 7iv7 in the case of qualifying battery components sold to an unrelated person after ,december #ca1 #bjbh1 #ajj percent4 7#c7 ,regulations ,the ,secretary shall1 to the extent practicable1 prescribe regulations similar to regulations prescribed under section #cj;,d7e7 to carry out the purposes of this subsection4 4 7d7 ,excluded entities ,section #de,x7c77#a7 of such ,code is amended by adding at the end the following new subparagraph3 7,c7 ,excluded entities ,the term eligible component shall not include any qualifying battery component with respect to which-- 7i7 any of the applicable critical minerals contained therein were extracted1 processed1 or recycled by a foreign entity of concern 7as defined in section #djbjg7;a77#e7 of the ,infrastructure ,investment and ,jobs ,act 7#db ,u4,s4,c4 #ahgda7;a77#e7771 and 7ii7 any of the constituent elements1 materials1 or subcomponents contained therein were produced1 manufactured1 or assembled by a foreign entity of concern 7as so defined74 ,the term foreign entity of concern shall include any entity that is directly or indirectly owned by a foreign entity of concern described in subparagraph 7,c7 of section #djbjg7;a77#e7 of such ,act4 4 7e7 ,modification of electrode active material definition 7#a7 ,in general ,section #de,x7c77#e77;,b77i7 of such ,code is amended-- 7,a7 by inserting electrode active precursor materials used in the production of cathode and anode materials1 after anode materials11 7,b7 by inserting binders1 after anode foils11 and 7,c7 by inserting solid state electrolytes1 after including4 7#b7 ,electrode active precursor materials ,section #de,x7c77#e77;,b77i7 of such ,code is amended-- 7,a7 by striking material4--,the term and inserting the following3 material4-- 7,i7 ,in general ,the term 1 and 7,b7 by adding at the end the following new subclause3 7,,ii7 ,electrode active precursor material ,the term electrode active precursor material means any of the following materials which are of a sufficient grade to meet the purity specifications to supply the electrode active materials market3 ,cobalt sulfate1 manganese sulfate1 iron sulfate1 lithium hydroxide1 metallurgical silicon1 phosphoric acid1 iron phosphate1 nickel manganese cobalt oxide1 graphene1 sulfur1 synthetic or natural graphite pitch1 or lithium carbonate4 4 7f7 ,certain silicon treated as applicable critical material ,section #de,x7c77#f7 of such ,code is amended by redesignating subparagraphs 7,t7 through 7,z7 as subparagraphs 7,u7 through 7,,aa71 respectively1 and by inserting after subparagraph 7,s7 the following new subparagraph3 7,t7 ,silicon ,silicon which is silicon or silicon composite used as an electrode active material in battery anodes4 4 7g7 ,effective date ,the amendments made by this section shall apply to components produced and sold after ,december #ca1 #bjbe4