Solar Industry reported that Sens. Charles Schumer, D-N.Y., and Sherrod Brown, D-Ohio, have introduced legislation that would make PV modules manufactured in China ineligible for the 30% federal tax credit that homeowners and businesses receive when installing PV arrays.

According to the report, the proposal would narrow the scope of solar panels eligible for the existing 30% tax credit by adding a domestic-content requirement. The proposal would require that 70% of the parts of the qualifying solar panel be U.S.- made - or, if the final point of manufacture is in the U.S., then 50% of the parts must be U.S.-made.

Currently, the U.S. Internal Revenue Service provides tax incentives for all solar panels sold and installed in the U.S., no matter where they are made. According to Schumer and Brown, the U.S. should not "let Chinese companies take advantage of these tax credits, on top of the built-in subsidies [they] already enjoy back in China."