GOP bill targeting 'Chinese billionaire loophole' on EVs passes after clash with Dems

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Lawmakers sparred on Capitol Hill before passing legislation to prevent prohibited foreign entities from obtaining U.S. tax credits on electric vehicles. 

The Republican-introduced End Chinese Dominance of Electric Vehicles Act was brought to the House floor for discussion on Thursday before passing with seven Democrats voting in support of the bill.

The bill will amend the Internal Revenue Code of 1986 to exclude electric vehicle batteries sourced from a foreign entity of concern (FEOC), such as China, from the clean vehicle credit. The legislation will tighten the FEOC definition for the 30D electric vehicle (EV) tax credit and prevent companies who partner with those entities from benefiting from the tax break.

Before voting on the legislation, Republican proponents of the bill urged their fellow lawmakers to "choose American taxpayers over Chinese billionaires."

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Rep. Carol Miller introduced the End Chinese Dominance of Electric Vehicles Act in April 2024. (Bill Clark/Getty Images)

Rep. Carol Miller, R-W.Va., who introduced the bill in April, said the legislation would "close the Chinese billionaire loophole" by preventing them from benefiting from EV subsidies. The vote was 217-192.

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Rep. Jason Smith, R-Mo., pointed to Vice President Kamala Harris for casting the tie-breaking vote on the Inflation Reduction Act of 2022 – which established the tax subsidies for electric vehicles.

"For years, the Chinese Communist Party has been doing everything it can do to dominate the electric vehicles market," Smith said on the House floor. "The Harris-Biden administration is now using American taxpayer dollars to further China's dominance of the EV market."

A Chevrolet Bolt charges at a station in Hudson, New York, on Tuesday, Sept. 3, 2024. (Angus Mordant/Getty Images)

Smith butted heads with the bill's Democratic critics, saying the fiery speech by Rep. Debbie Dingell, D-Mich., against the legislation was "hogwash."

Rep. Judy Chu, D-Calif, called the legislation "another excuse by Republicans to undermine the Inflation Reduction Act," while Rep. Dan Kildee, D-Mich., argued that "this bill would make it harder for us to compete with China."

Rep. Dingell introduced a motion to recommit the bill. (Al Drago)

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Rep. Dingell introduced a motion to recommit the bill to the Ways and Means Committee, but it did not pass after a yea and nay vote. 

Fox News' Morgan Phillips contributed to this report.