S.Amdt. 2734

SA 2734. Mr. HEINRICH submitted an amendment intended to be proposed
to amendment SA 2360 proposed by Mr. Thune (for Mr. Graham) to the bill
H.R. 1, to provide for reconciliation pursuant to title II of H. Con.
Res. 14; which was ordered to lie on the table; as follows:

Strike section 70514 and insert the following:

SEC. 70514. PHASE-OUT AND RESTRICTIONS ON ADVANCED
MANUFACTURING PRODUCTION CREDIT.

(a) Modification of Provision Relating to Sale of
Integrated Components.--Paragraph (4) of section 45X(d) is
amended to read as follows:
``(4) Sale of integrated components.--
``(A) In general.--For purposes of this section, a person
shall be treated as having sold an eligible component to an
unrelated person if--
``(i) such component (referred to in this paragraph as the
`primary component') is integrated, incorporated, or
assembled into another eligible component (referred to in
this paragraph as the `secondary component') produced within
the same manufacturing facility as the primary component, and
``(ii) the secondary component is sold to an unrelated
person.
``(B) Additional requirements.--Subparagraph (A) shall only
apply with respect to a secondary component for which not
less than 65 percent of the total direct material costs which
are paid or incurred (within the meaning of section 461 and
any regulations issued under section 263A) by the taxpayer to
produce such secondary component are attributable to primary
components which are mined, produced, or manufactured in the
United States.''.
(b) Phase Out and Termination.--Section 45X(b)(3) is
amended--
(1) in the heading, by inserting ``and termination'' after
``Phase out'',
(2) in subparagraph (A), in the matter preceding clause
(i), by striking ``subparagraph (C)'' and inserting
``subparagraphs (C) and (D)'', and
(3) by striking subparagraph (C) and inserting the
following:
``(C) Phase out for applicable critical minerals.--
``(i) In general.--In the case of any applicable critical
mineral produced after December 31, 2030, the amount
determined under this subsection with respect to such mineral
shall be equal to the product of--

``(I) the amount determined under paragraph (1) with
respect to such mineral, as determined without regard to this
subparagraph, multiplied by
``(II) the phase out percentage under clause (ii).

``(ii) Phase out percentage for applicable critical
minerals.--The phase out percentage under this clause is
equal to--

``(I) in the case of any applicable critical mineral
produced during calendar year 2031, 75 percent,
``(II) in the case of any applicable critical mineral
produced during calendar year 2032, 50 percent,
``(III) in the case of any applicable critical mineral
produced during calendar year 2033, 25 percent, and
``(IV) in the case of any applicable critical mineral
produced after December 31, 2033, 0 percent.

``(D) Termination for wind energy components.--This section
shall not apply to any wind energy component produced and
sold after December 31, 2027.''.
(c) Restrictions Relating to Prohibited Foreign Entities.--
Section 45X is amended--
(1) in subsection (c)(1), by adding at the end the
following new subparagraph:
``(C) Material assistance from prohibited foreign
entities.--In the case of taxable years beginning after the
date of enactment of this subparagraph, the term `eligible
component' shall not include any property which includes any
material assistance from a prohibited foreign entity (as
defined in section 7701(a)(52), as applied by substituting
`used in a product sold before January 1, 2027' for `used in
a product sold before January 1, 2030' in subparagraph
(D)(iii)(V)(bb) thereof).'', and
(2) in subsection (d), as amended by subsection (a) of this
section, by adding at the end the following new paragraph:
``(4) Restrictions relating to prohibited foreign
entities.--
``(A) In general.--No credit shall be determined under
subsection (a) for any taxable year if the taxpayer is--
``(i) a specified foreign entity (as defined in section
7701(a)(51)(B)), or
``(ii) a foreign-influenced entity (as defined in section
7701(a)(51)(D), without regard to clause (i)(II) thereof).
``(B) Effective control.--In the case of a taxpayer for
which section 7701(a)(51)(D)(i)(II) is determined to apply
for any taxable year, no credit shall be determined under
subsection (a) for such taxable year if such determination
relates to an eligible component described in subsection
(c)(1).''.
(d) Modification of Definition of Battery Module.--Section
45X(c)(5)(B)(iii) is amended--
(1) in subclause (I)(bb), by striking ``and'' at the end,
(2) in subclause (II), by striking the period at the end
and inserting ``, and'', and
(3) by adding at the end the following new subclause:

``(III) which is comprised of all other essential equipment
needed for battery functionality, such as current collector
assemblies and voltage sense harnesses, thermal collection
assemblies, or other essential energy collection
equipment.''.

(e) Effective Dates.--
(1) In general.--Except as provided in paragraph (2), the
amendments made by this section shall apply to taxable years
beginning after the date of enactment of this Act.
(2) Modification of provision relating to sale of
integrated components.--The amendment made by subsection (a)
shall apply to components sold during taxable years beginning
after December 31, 2026.
______