Reps. Dan Meuser (R-PA), John Moolenaar (R-MI), Vicky Hartzler (R-MO), and Billy Long (R-MO) introduced the USA Batteries Act to repeal the recently enacted Superfund chemical tax that affects substances used in lead battery manufacturing. The bill would eliminate the tax on lead oxide, antimony, and sulfuric acid, the primary inputs used in lead batteries.
Lead batteries are used in vehicles, telecommunications, defense, and energy generation. A truly sustainable energy source, 99% of lead batteries are recycled for use in new batteries or other products. The lead battery industry is comprised of many small businesses employing 25,000 Americans across 38 states with an annual economic impact of $23.6 billion.
“This tax hike on American battery manufacturers reduces America’s competitiveness and kills good manufacturing jobs,” said Representative Meuser. “At a time when small businesses are reeling from supply chain disruptions, labor shortages, and higher prices, this new and unnecessary tax would be detrimental to the industry. Repealing this tax ensures this industry can continue to thrive without facing stiffened competition from foreign producers who have a competitive advantage because they aren’t subject to the tax.”
“Repealing this tax on battery manufacturing will foster innovation and help American manufacturers compete around the world,” said Representative Moolenaar. “I hope Congress will quickly pass this legislation and repeal this tax on American battery manufacturing, especially at a time when our country needs more secure supply chains and more American manufacturing.”
“Erroneously taxing domestic battery manufacturers for waste they do not create is not only burdensome to these producers, but also targets a false boogeyman to solve a misconstrued cleanup problem,” said Representative Hartzler. “Legislation such as the USA Batteries Act rights this wrong by eliminating certain elements as taxable chemicals under the Superfund excise taxes. I thank Rep. Meuser for his efforts correcting this issue for these energy providers.”
“Whenever Washington raises taxes such as this, our competitors rejoice, while Americans suffer,” said Congressman Long. “I am co-sponsoring the USA Batteries Act because the Superfund chemical tax hurts small businesses, and negatively impacts a wide range of industries. We should not be handing our competitors a victory at the expense of American citizens.”
“The lead battery industry thanks Representatives Meuser, Moolenaar, Long and Hartzler for taking steps to ensure that the essential U.S. battery manufacturing industry can continue to provide lead batteries for many critical business sectors including defense, transportation, logistics, telecommunications and energy generation,” said Roger Miksad, Executive Vice President of Battery Council International. “The USA Batteries Act will eliminate a tax that gives foreign manufacturers an unfair advantage on the cost of raw materials, and undermines the purpose of the infrastructure bill which was created to support domestic manufacturing. If the tax is allowed to stand it will negatively impact the 25,000 American workers who make and recycle lead batteries and take pride in the fact that their product is the most recycled consumer product in the U.S.”
Background:
The Infrastructure Investment & Jobs Act reinstated the Superfund Chemical fee on 42 substances at twice the previously enacted tax rates. Lead oxide, antimony, and sulfuric acid are primarily used as inputs in lead batteries which are used in vehicles as well as for defense, logistics, telecommunications, and energy generation. The USA Batteries Act repeals the tax on lead oxide, antimony, and sulfuric acid that would negatively impact domestic battery manufacturing.
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