Full Title: The Advanced Manufacturing Tax Credit is Rebuilding U.S. Manufacturing
Author(s): Tom Taylor, Stephen Naimoli, and Moe Khatib
Publisher(s): ATLAS Public Policy
Publication Date: June 1, 2025
Full Text: Download Resource
Description (excerpt):
The United States is in the early stages of a manufacturing renaissance. While many factors have driven this momentum, few are more important than the Advanced Manufacturing Production Tax Credit (45X). However, this credit, among others, is threatened by the U.S. House’s One Big Beautiful Bill Act as part of the 2025 budget reconciliation process that may make it effectively impossible to claim. As of early June 2025, the fate of the tax credit remains unclear. This brief outlines the potential reach of the Advanced Manufacturing Production Tax Credit on the production of batteries, solar energy components, wind energy components, inverters, and critical minerals. To date, a total of $48.3 billion in announced investments and 62,700 jobs are associated with operational facilities that qualify for the tax credit. There is a further $137.2 billion and 103,100 jobs in tracked announcements at facilities that are planned or under construction that will be eligible for the tax credit. Overwhelmingly, the factories supporting this manufacturing are in Republican House Congressional districts