No EV Credits for Idle Allies Act

Subjects: Taxation

Summary:  <p> <strong>No EV Credits for Idle Allies Act </strong></p> <p>This bill excludes critical materials for vehicle batteries that were extracted or processed in Germany or France from any determination of the eligible amount of the new clean vehicle tax credit unless the Department of State certifies that either country has, since February 24, 2022, directly provided a cumulative amount of aid to Ukraine that is not less than the direct commitment of aid provided by the United States. </p> <p>The State Department must annually review its certification of the amount of aid provided to Ukraine by Germany or France and require such countries to attain a certain level of defense spending for the duration of the war in Ukraine.</p>

<html><body><pre>[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[S. 1242 Introduced in Senate (IS)]

&lt;DOC&gt;






118th CONGRESS
  1st Session
                                S. 1242

   To exclude critical minerals that were extracted or processed in 
certain countries that are providing insufficient levels of assistance 
 to Ukraine from being included for purposes of determining the amount 
                    of the clean vehicle tax credit.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             April 20, 2023

    Mr. Cotton (for himself, Mr. Rubio, Mr. Vance, and Mr. Hagerty) 
introduced the following bill; which was read twice and referred to the 
                          Committee on Finance

_______________________________________________________________________

                                 A BILL


 
   To exclude critical minerals that were extracted or processed in 
certain countries that are providing insufficient levels of assistance 
 to Ukraine from being included for purposes of determining the amount 
                    of the clean vehicle tax credit.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``No EV Credits for Idle Allies Act''.

SEC. 2. SENSE OF CONGRESS.

    It is the sense of Congress that the United States does not have 
any free trade agreement in effect with the European Union or any 
member country of the European Union.

SEC. 3. EXCLUSION OF CRITICAL MINERALS EXTRACTED OR PROCESSED IN 
              CERTAIN COUNTRIES.

    (a) Exclusion.--For purposes of determining the credit under 
section 30D of the Internal Revenue Code of 1986 with respect to any 
new clean vehicle (as defined in section 30D(d)(1) of such Code), any 
applicable critical minerals contained in the battery of such vehicle 
which were extracted or processed in Germany or France shall not be 
included for purposes of any determination under section 30D(e)(1)(A) 
of such Code with respect to such vehicle unless the Secretary of State 
certifies that the country has, since February 24, 2022, directly 
provided a cumulative amount of humanitarian, financial, and military 
aid to Ukraine which is not less than the cumulative amount of the 
United States direct commitment of humanitarian, financial, and 
military aid to Ukraine, as measured as a percent of GDP.
    (b) Recertification Requirement.--
            (1) In general.--If the Secretary of State certifies that 
        Germany or France satisfies the requirements under subsection 
        (a), a review of such certification shall be made not less than 
        annually thereafter for purposes of determining the inclusion 
        or exclusion of applicable critical minerals extracted or 
        processed in France or Germany in the credit calculation 
        described in such subsection.
            (2) Failure to recertify.--With respect to the review 
        described in paragraph (1), if the Secretary of State 
        determines that France or Germany has failed to satisfy the 
        requirements under subsection (a), the exclusion described in 
        such subsection with respect to applicable critical minerals 
        which were extracted or processed in such country shall apply 
        for the 12-month period subsequent to such determination, at 
        which time the Secretary of State shall reassess the levels of 
        aid described in such subsection that have been provided.
    (c) Failure To Attain Certification for Duration of War in 
Ukraine.--If the Secretary of State cannot make the certification 
described under subsection (a) with respect to France or Germany for 
the duration of the Russian war in Ukraine (as determined by the 
Secretary pursuant to subsection (d)), the exclusion described in 
subsection (a) with respect to applicable critical minerals which were 
extracted or processed in such country shall apply until such time as 
the government of that country--
            (1) spends not less than 2 percent of its GDP on defense 
        spending; and
            (2) with respect to the 2 most recently completed calendar 
        years, has maintained that level of funding.
    (d) Determination.--For purposes of subsection (c), the Secretary 
of State shall, upon determining that the Russian war in Ukraine has 
concluded, submit a notification to that effect to Congress.
    (e) Definitions.--In this section--
            (1) Aid to ukraine.--The term ``aid to Ukraine'' shall only 
        apply to assistance provided to the Government of Ukraine or 
        for the assistance of individuals within the borders of 
        Ukraine.
            (2) Applicable critical minerals.--The term ``applicable 
        critical minerals'' has the same meaning given such term in 
        section 45Z(c)(6) of the Internal Revenue Code of 1986.
            (3) Directly provided.--The term ``directly provided'', 
        with respect to aid, shall not include any contributions made 
        to the European Union and subsequently provided to support 
        Ukraine.
    (f) Effective Date.--This section shall apply to vehicles placed in 
service after the date of enactment of this Act.
                                 &lt;all&gt;
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