The American Chemistry Council (ACC) is seeing growing interest in initiating and expanding U.S. manufacturing activity as a result of key tax credits included in the Inflation Reduction Act and the CHIPS and Science Act. In particular, the tax credits that incentivize manufacturing to support the production of clean hydrogen, new clean vehicles, semiconductors, carbon sequestration, and critical minerals and electrode active material are important to the business of chemistry. Our companies create many of the materials, inputs, and technologies used to produce these items.
ACC urges policymakers to retain IRA tax credits that incentivize vital domestic manufacturing activity, expansion, and innovation and strengthen U.S. competitiveness. In addition, we urge careful implementation of these tax credits consistent with Congressional intent, with specific recommendations for improvement.