HR 9338: To amend the Internal Revenue Code of 1986 to restrict the advanced manufacturing production credit with respect to components produced by, or in connection with, foreign entities of concern.

HR 9338 in plain English: This bill is early in the legislative process and detailed text is not yet available. Sponsor: Rep. Miller, Max L. [R-OH-7] (R) · Status: Referred to the House Committee on Ways and Means.

Stated purpose

This bill aims to prevent companies from receiving the advanced manufacturing production tax credit if their components are produced by, or involve technology from, foreign entities of concern (such as terrorist organizations or adversarial foreign companies).

Arguments supporters make

• Taxpayer money should not subsidize companies that rely on foreign adversaries or terrorist-linked organizations in their supply chains.
• Blocking these credits encourages American manufacturers to build supply chains that are independent from potentially hostile foreign powers, making the country more secure.
• The advanced manufacturing credit was meant to strengthen U.S. industry, and allowing foreign entities of concern to benefit undermines that goal.

Arguments opponents make

• Some U.S. manufacturers may struggle to quickly find alternative suppliers, making it harder to claim credits and slowing down domestic manufacturing growth the original credit was designed to support.
• The definition of 'foreign entity of concern' is broad and could sweep in companies that pose little real national security risk, creating compliance uncertainty for businesses.
• Restricting these credits could raise production costs for American companies, potentially making U.S.-made products less competitive and harming the industries the credit was intended to help.

Tradeoffs

Tightening national security requirements around the tax credit may reduce foreign adversary influence in U.S. supply chains, but could also make it harder or more expensive for some domestic manufacturers to qualify, potentially slowing the growth of advanced manufacturing the credit was designed to encourage.

Current status in Congress: In committee.

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