Protecting American Advanced Manufacturing Act

HR 6762, the Protecting American Advanced Manufacturing Act, blocks tax credits for manufacturing components produced by companies linked to foreign adversaries (like China or Russia). It prohibits the Advanced Manufacturing Production Credit under tax code section 45X for any component made by a "disqualified entity," defined as companies with 10%+ ownership by foreign adversaries, subject to their control, or involved in prohibited financial arrangements (like debt or leases). This directly affects manufacturers relying on components from such entities, requiring them to source domestically or from non-adversary suppliers to qualify for the credit. The law takes effect for taxable years after its enactment, with the IRS given authority to establish implementation rules.