Biden Harris Let CCP Affiliated Companies Rob Michigan Families and Receive Tax Credits

Biden-Harris Let CCP-Affiliated Companies Rob Michigan Families and Receive Tax Credits

Congressman John Moolenaar today made the following statement after the Treasury Department released final IRS rules on the Advanced Manufacturing Production Credit under Section 45X of the Internal Revenue Code. These tax credits were created by the so-called Inflation Reduction Act, which was partisan legislation that passed in 2022 with no Republican votes. Chinese companies like Gotion which make battery components for electric vehicles would qualify for the tax credit.

"Today's announcement by the Treasury Department leaves the door wide open for Gotion and other Chinese companies to receive federal tax credits. It is a disgraceful policy that will take money from hardworking Michigan families and funnel it straight to Beijing while forcing our Michigan automakers to become more dependent on supply chains controlled by China. Democrats in Lansing have given Gotion $715 million in taxpayer support and now this Biden-Harris policy will let Chinese companies collect billions more from hardworking Michigan families."

Electric vehicle supply chains are dominated by China, as "Chinese companies supply 80 percent of the world's battery cells and account for nearly 60 percent of the EV battery market."