End Chinese Dominance of Electric Vehicles in America Act of 2024

Section 30D(d)(7) of the Internal Revenue Code of 1986 is amended to read as follows:

For purposes of this section, the term new clean vehicle shall not include any vehicle—

(i) with respect to which any of the components contained in the drive battery or any material contained in such a component was extracted, processed, recycled, manufactured, or assembled by a prohibited foreign entity, or

(ii) the drive battery of which is designed, manufactured, or produced using any process attributable to any licensing, royalty, service, or similar agreement with a prohibited foreign entity the estimated total contract cost, including variable, contingent, or sales-based payments, of which exceeds $5,000,000.

For purposes of subparagraph (A), the term prohibited foreign entity means—

(i) any foreign entity of concern (as defined in section 40207(a)(5) of the Infrastructure Investment and Jobs Act),

(ii) any entity with respect to which the government of a covered nation has the right or power (directly or indirectly) to appoint or approve the appointment of a covered officer, or

(iii) any entity 25 percent or more of the capital or profits interests of which are owned (directly or indirectly) in the aggregate by 1 or more of the following:

(I) A covered nation or an entity described in clause (i) or (ii).

(II) A citizen, national, or resident of a covered nation.

(III) An entity organized under the laws of a covered nation.

For purposes of this paragraph, the term covered officer means—

(i) any member of the board of directors, board of supervisors, or an equivalent governing body,

(ii) the president, senior vice president, chief executive officer, chief operating officer, chief financial officer, or general counsel, or

(iii) any individual who performs duties usually associated with a title listed in clause (i) or (ii).

For purposes of this paragraph, the term covered nation has the meaning given such term in section 4872(d) of title 10, United States Code.

For purposes of this paragraph, the term drive battery means, with respect to a vehicle, the battery from which the electric motor of such vehicle draws electricity.

The amendment made by this section shall apply to vehicles placed in service after the date of enactment of this Act.