Pub. L. 119–21, title VII, § 70514(a), (f), July 4, 2025, 139 Stat. 273, 276, provided that, applicable to components sold during taxable years beginning after Dec. 31, 2026, subsection (d)(4) of this section is amended to read as follows:

(4) Sale of integrated components

(A) In general

For purposes of this section, a person shall be treated as having sold an eligible component to an unrelated person if—

(i) such component (referred to in this paragraph as the “primary component”) is integrated, incorporated, or assembled into another eligible component (referred to in this paragraph as the “secondary component”) produced within the same manufacturing facility as the primary component, and

(ii) the secondary component is sold to an unrelated person.

(B) Additional requirements

Subparagraph (A) shall only apply with respect to a secondary component for which not less than 65 percent of the total direct material costs which are paid or incurred (within the meaning of section 461 and any regulations issued under section 263A) by the taxpayer to produce such secondary component are attributable to primary components which are mined, produced, or manufactured in the United States.

See 2025 Amendment note below.

The date of the enactment of this section, referred to in subsec. (c)(1)(B), is the date of enactment of Pub. L. 117–169, which was approved Aug. 16, 2022.

The date of enactment of this subparagraph, referred to in subsec. (c)(1)(C), is the date of enactment of Pub. L. 119–21, which was approved July 4, 2025.

2025—Subsec. (b)(1)(M). Pub. L. 119–21, § 70514(e)(2), inserted “(2.5 percent in the case of metallurgical coal)” after “10 percent”.

Subsec. (b)(3). Pub. L. 119–21, § 70514(b)(1), inserted “and termination” after “Phase out” in heading.

Subsec. (b)(3)(A). Pub. L. 119–21, § 70514(b)(2), substituted “subparagraphs (C) and (D)” for “subparagraph (C)” in introductory provisions.

Subsec. (b)(3)(C) to (E). Pub. L. 119–21, § 70514(b)(3), added subpars. (C) to (E) and struck out former subpar. (C). Prior to amendment, text of subpar. (C) read as follows: “For purposes of determining the amount under this subsection with respect to any applicable critical mineral, this paragraph shall not apply.”

Subsec. (c)(1)(C). Pub. L. 119–21, § 70514(c)(1), added subpar. (C).

Subsec. (c)(5)(B)(iii)(III). Pub. L. 119–21, § 70514(d), added subcl. (III).

Subsec. (c)(6)(R) to (AA). Pub. L. 119–21, § 70514(e)(1), added subpar. (R) and redesignated former subpars. (R) to (Z) as (S) to (AA), respectively.

Subsec. (d)(4). Pub. L. 119–21, § 70514(c)(2), added par. (4) relating to restrictions relating to prohibited foreign entities.

Pub. L. 119–21, § 70514(a), amended par. (4) generally. Prior to amendment, text read as follows: “For purposes of this section, a person shall be treated as having sold an eligible component to an unrelated person if such component is integrated, incorporated, or assembled into another eligible component which is sold to an unrelated person.”

Pub. L. 119–21, title VII, § 70514(f), July 4, 2025, 139 Stat. 276, provided that:

Pub. L. 117–169, title I, § 13502(c), Aug. 16, 2022, 136 Stat. 1981, provided that: “The amendments made by this section [enacting this section and amending section 38 of this title] shall apply to components produced and sold after December 31, 2022.”