US senators propose bill to bar Chinese solar firms from US tax credits

A group of four US senators have introduced bipartisan legislation that seeks to prevent US taxpayer money, intended to support American advanced manufacturing, from going to Chinese solar and clean energy companies.

The American Tax Dollars for American Solar Manufacturing Act was introduced on Wednesday by Democratic senators Sherrod Brown of Ohio and Jon Ossoff of Georgia and Republicans Bill Cassidy of Louisiana and Rick Scott of Florida. The legislation aims to stop any company with ties to a Foreign Entity of Concern from receiving the 45X Advanced Manufacturing Tax Credit.

“We cannot allow American tax dollars to go to Chinese companies that cheat and undermine American solar manufacturing. Our bipartisan bill will make sure that only American companies are supported by taxpayer dollars, and support the creation of manufacturing jobs throughout the solar supply chain across Ohio,” said Brown.

"Our Federal manufacturing incentives are driving historic economic development in Georgia and across the country. As these policies fuel record growth in solar manufacturing, tax incentives shouldn’t be used by Chinese solar companies that threaten our energy security,” Ossoff said.

The Solar Energy Manufacturers for America (SEMA) Coalition welcomed the initiative. Its executive director Mike Carr said the legislation is protecting American solar manufacturing. “While we should welcome foreign investment in the US, Chinese-owned solar companies should not have access to US incentives while they receive massive market-distorting subsidies in China,” Carr stated.

“By reshoring the solar supply chain, we can bolster solar manufacturing in the U.S. and ensure our country is not dependent on China for a technology that was invented here and accounted for half of our new grid energy additions last year,” he added.

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