Chairman Smith Warns Treasury Must Act Immediately to Stop Tax Dollars from Flowing to China, Demands Automakers Provide Details on Foreign Partnerships

Press Release

"While I do not agree with the policy that provides massive taxpayer-funded subsidies for electric vehicles, certainly we should be able to agree that taxpayer funds should not flow in a way that benefits the Chinese Community Party (CCP) or other entities who do not share our aligned interests. Treasury guidance should make clear in the most comprehensive way possible that taxpayer subsidies cannot flow to foreign entities of concern through any structuring mechanism conceivable. Guidance on this topic should be as strict and prompt as possible so there is no ambiguity that the benefit of taxpayer subsidies cannot end up in the hands of our adversaries.

The Committee on Ways and Means remains committed to protecting American workers and businesses and remains concerned that electric vehicle (EV) sourcing rules in the IRA continue to provide loopholes that allow EV automakers to circumvent protections for taxpayers and their money."

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