"“Totally unworkable” rules could kill manufacturing and clean energy investment by restricting tax credits for any project remotely tied to China, experts warn."
"Tucked into the House Republicans’ 389-page tax bill released on Monday is a poison pill for U.S. clean energy developers and manufacturers, one that energy and tax policy experts say would essentially repeal the hundreds of billions of dollars of tax credits now flowing to energy projects and solar, battery, and EV factories across the country.
The provision at issue prohibits tax credits for any project associated with “foreign entities of concern,” a category that includes companies and individuals linked to China as well as any “material assistance” from Chinese companies, their subsidiaries, or even non-Chinese companies that happen to have executives who are Chinese citizens. Its scope is so sweeping, and China’s dominance of clean-energy supply chains so vast, that virtually all clean power projects or factories being built today could be implicated.
If passed into law, this piece of the House Ways and Means Committee proposal would undermine investor confidence in financing the buildout of new clean-energy projects and factories, experts say. It could also erode the tax-credit eligibility of solar, wind, battery, geothermal, nuclear, and other zero-carbon energy developments under construction, and the eligibility of factories that are already online and churning out batteries, solar panels, and other clean energy products."
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