Senate Democrats urge more stringent tax rules for Chinese solar firms

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Senate Democrats urge more stringent tax rules for Chinese solar firms

The Hill – Two Senate Democrats unveiled a proposal on Tuesday that would make it harder for Chinese solar panel firms to qualify for tax credits that they say are giving those companies an edge over U.S. manufacturers.

The measure, introduced by Sens. Charles Schumer (N.Y.) and Sherrod Brown (Ohio), would add a domestic content requirement to solar panels sold in the United States, making it more difficult for Chinese-made solar panel firms to qualify for the 30 percent tax credit that U.S. individuals and businesses receive for purchasing and installing solar panels.

“The federal government has to take China’s stranglehold on the solar power industry very seriously, and U.S. manufacturers must have every arrow in their quiver to fight back,” Schumer said.

“This proposal is tough, but it’s needed to successfully counter China’s unfair trade practices,” he said.

The proposal would require that 70 percent of the parts of the qualifying solar panel be made in the United States; if the final point of manufacture is here, then 50 percent of the parts must be U.S.-made.

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