Biden proposes veto of solar tariff bill


President Joe Biden has pledged to veto legislation passed by both the House and the Senate that would reinstate tariffs on solar panels from Cambodia, Thailand, Malaysia and Vietnam.


The tariffs were originally meat to be imposed after a Commerce Department investigation uncovered solar manufacturers circumventing duties but were suspended under a two-year moratorium from the White House. Congress used the Congressional Review Act to attack the moratorium. The House voted 221 to 202 to rescind the moratorium and the Senate followed suit by a 56 to 41 margin. Several Democrats in both chambers joined Republicans in the votes, but the margins are still well short of the votes needed to overcome a promised veto from Biden.


If imposed, the tariffs could significantly affect solar projects leveraging the new tax credits under the Inflation Reduction Act.




Tax professional standards statement

This content supports Grant Thornton LLP’s marketing of professional services and is not written tax advice directed at the particular facts and circumstances of any person. If you are interested in the topics presented herein, we encourage you to contact us or an independent tax professional to discuss their potential application to your particular situation. Nothing herein shall be construed as imposing a limitation on any person from disclosing the tax treatment or tax structure of any matter addressed herein. To the extent this content may be considered to contain written tax advice, any written advice contained in, forwarded with or attached to this content is not intended by Grant Thornton LLP to be used, and cannot be used, by any person for the purpose of avoiding penalties that may be imposed under the Internal Revenue Code.

The information contained herein is general in nature and is based on authorities that are subject to change. It is not, and should not be construed as, accounting, legal or tax advice provided by Grant Thornton LLP to the reader. This material may not be applicable to, or suitable for, the reader’s specific circumstances or needs and may require consideration of tax and nontax factors not described herein. Contact Grant Thornton LLP or other tax professionals prior to taking any action based upon this information. Changes in tax laws or other factors could affect, on a prospective or retroactive basis, the information contained herein; Grant Thornton LLP assumes no obligation to inform the reader of any such changes. All references to “Section,” “Sec.,” or “§” refer to the Internal Revenue Code of 1986, as amended.


More tax hot topics