Manufacturing tax credit to sunset under Trump bill

Among the items in the so-called One Big Beautiful Bill, a nickname for the recent budget reconciliation law, that President Trump signed last week is one that will phase out a key Biden-era tax credit used by many manufacturers, including those in primary aluminum.

Section 45X of the Internal Revenue Code implemented the advanced manufacturing production credit established by the Inflation Reduction Act of 2022, which aimed to incentivize the production of “eligible components” within the United States. “Eligible components” include certain solar energy components, wind energy components, inverters, qualifying battery components, and applicable critical minerals.