I 
118TH CONGRESS 
1ST SESSION H. R. 6762 
To amend the Internal Revenue Code of 1986 to disallow companies associ-
ated with foreign adversaries from receiving the advanced manufacturing 
production credit. 
IN THE HOUSE OF REPRESENTATIVES 
DECEMBER 13, 2023 
Mrs. MILLER of West Virginia introduced the following bill; which was 
referred to the Committee on Ways and Means 
A BILL 
To amend the Internal Revenue Code of 1986 to disallow 
companies associated with foreign adversaries from re-
ceiving the advanced manufacturing production credit. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Protecting American 
Advanced Manufacturing Act’’. 
VerDate Sep 11 2014 
20:19 Jan 04, 2024
Jkt 049200
PO 00000
Frm 00001
Fmt 6652
Sfmt 6201
E:\BILLS\H6762.IH
H6762
SEC. 2. PROHIBITION ON ALLOWANCE OF ADVANCED MAN-
UFACTURING PRODUCTION CREDIT FOR ELI-
GIBLE COMPONENTS PRODUCED BY COMPA-
NIES ASSOCIATED WITH FOREIGN ADVER-
SARIES. 
(a) IN GENERAL.—Section 45X of the Internal Rev-
enue Code of 1986 is amended by adding at the end the 
following new subsection: 
‘‘(e) PROHIBITION ON ALLOWANCE OF CREDIT FOR 
ELIGIBLE COMPONENTS PRODUCED BY COMPANIES AS-
SOCIATED WITH FOREIGN ADVERSARIES.— 
‘‘(1) IN GENERAL.—No credit shall be allowed 
under subsection (a) with respect to any eligible 
component which is produced by a disqualified enti-
ty. 
‘‘(2) DISQUALIFIED ENTITY.— 
‘‘(A) IN GENERAL.—For purposes of this 
subsection, the term ‘disqualified entity’ means 
any entity described in subparagraphs (B) 
through (D). 
‘‘(B) FOREIGN ADVERSARY PARTIES.—The 
entities described in this subparagraph consist 
of the following: 
‘‘(i) The government of a foreign ad-
versary, any agency or government instru-
mentality of a foreign adversary, or any 
VerDate Sep 11 2014 
20:19 Jan 04, 2024
Jkt 049200
PO 00000
Frm 00002
Fmt 6652
Sfmt 6201
E:\BILLS\H6762.IH
H6762
entity which is directly or indirectly owned, 
controlled, or directed by any such govern-
ment, agency, or government instrumen-
tality. 
‘‘(ii) Any entity organized under the 
laws of a foreign adversary (or any polit-
ical subdivision thereof) or whose head-
quarters is located within a foreign adver-
sary. 
‘‘(C) OWNED, CONTROLLED, DIRECTED, OR 
INFLUENCED
BY
FOREIGN
ADVERSARY
PAR-
TIES.—The entities described in this subpara-
graph consist of the following: 
‘‘(i) Any entity for which, on any date 
during the taxable year, not less than 10 
percent of the outstanding equity interests 
(by value, voting, governance, board ap-
pointment, or similar rights or influence) 
are held directly or indirectly by, or on be-
half of, 1 or more of the entities described 
in subparagraph (B), including through in-
terests in co-investment vehicles, joint ven-
tures, or similar arrangements. 
‘‘(ii) Any entity which is directly or 
indirectly controlled, directed, or materially 
VerDate Sep 11 2014 
20:19 Jan 04, 2024
Jkt 049200
PO 00000
Frm 00003
Fmt 6652
Sfmt 6201
E:\BILLS\H6762.IH
H6762
influenced by any entity described in sub-
paragraph (B). 
‘‘(iii) Any entity for which the actions, 
management, ownership, or operations of 
such entity are subject to the direct influ-
ence of an entity described in subpara-
graph (B). 
‘‘(iv) Any entity for which an interest 
in such entity is held by an entity de-
scribed in subparagraph (B) (referred to in 
this clause as the ‘beneficiary firm’) as a 
derivative financial instrument or through 
a contractual arrangement between the 
beneficiary firm and such entity, including 
any financial instrument or other contract 
between the beneficiary firm and the entity 
which seeks to replicate any financial re-
turn with respect to such entity or interest 
in such entity. 
‘‘(D) DEBT
OR
OTHER
ARRANGEMENTS 
WITH FOREIGN ADVERSARY PARTIES.— 
‘‘(i) IN GENERAL.—An entity is de-
scribed in this subparagraph if, as a result 
of any prohibited obligation or arrange-
ment— 
VerDate Sep 11 2014 
20:19 Jan 04, 2024
Jkt 049200
PO 00000
Frm 00004
Fmt 6652
Sfmt 6201
E:\BILLS\H6762.IH
H6762
length transaction shall not, in and of 
itself, be deemed to provide a substantial 
benefit. 
‘‘(E) OTHER DEFINITIONS.—For purposes 
of this paragraph— 
‘‘(i) CONTROL.—The term ‘control’ 
has the meaning given in section 800.208 
of title 31, Code of Federal Regulations 
(as in effect on the date of enactment of 
the Protecting American Advanced Manu-
facturing Act). 
‘‘(ii) 
FOREIGN
ADVERSARY.—The 
term ‘foreign adversary’ has the meaning 
given the term ‘covered nation’ in section 
4872(d)(2) of title 10, United States Code. 
‘‘(3) ADMINISTRATION.—The Secretary may 
issue such guidance as is necessary to carry out the 
purposes of this subsection, including establishment 
of rules for— 
‘‘(A) 
implementation 
of 
paragraph 
(2)(C)(i) for determination of whether the per-
centage requirements with respect to out-
standing equity interests have been satisfied in 
the case of an entity for which the stock of such 
entity is traded on an established securities 
VerDate Sep 11 2014 
20:19 Jan 04, 2024
Jkt 049200
PO 00000
Frm 00006
Fmt 6652
Sfmt 6201
E:\BILLS\H6762.IH
H6762
market in the United States or any foreign 
country, and 
‘‘(B) preventing entities from evading, cir-
cumventing, or abusing the application of the 
requirements under this subsection.’’. 
(b) EFFECTIVE DATE.—The amendment made by 
this section shall apply to taxable years beginning after 
the date of enactment of this Act. 
Æ 
VerDate Sep 11 2014 
20:19 Jan 04, 2024
Jkt 049200
PO 00000
Frm 00007
Fmt 6652
Sfmt 6301
E:\BILLS\H6762.IH
H6762