Solar project developers could soon qualify for an additional 10 percent “domestic content” tax credit even if some components inside the U.S.-made panels they use, such as silicon wafers, come from China or other foreign countries.

That exclusion allowed under a new Biden Administration plan has upset U.S. Rep. Marcy Kaptur (D., Toledo), who said in a news release this week that she doesn’t understand why panels made in the United States with any foreign parts are being treated as if they are entirely domestic products.

“When a product is given the benefit of being called American-made, that should include all stages and steps in the production process,” she said. “Giving this additional tax benefit to those who cut corners is yet another reward for bad behavior.”

The change was announced Friday by the U.S. Department of the Treasury.

The White House, in conjunction with several federal agencies, said it was proposing new guidance to help achieve its overall goal of encouraging more domestic manufacturing of iron, steel, and manufactured products.

The 19-page document, which the White House has published online, states that a manufactured product component “is considered to be of U.S. origin if it is manufactured in the United States, regardless of the origin of its subcomponents.”

A report issued by the International Energy Agency last year concluded that China accounted for 97 percent of global silicon wafer production.

Ms. Kaptur said she fears the administration policy will indirectly “reward those who offshore jobs in China and elsewhere.”

“The administration must not allow China to undercut domestic manufacturers and the workers who power them with our own tax code,” she said.

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