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Bill

HR 6787

to amend the Internal Revenue Code of 1986 to create a carbon border adjustment based on carbon intensity, and for other purposes.

119th Congress Introduced by Ami Bera and 4 co-sponsors

Implements a carbon border adjustment using carbon intensity to tax or credit imports, aiming to level domestic competition and curb embedded emissions.

Introduced in House
0
WeVote Research Nonpartisan
Bill Summary · HR 6787

Summary of HR 6787 (2025): Carbon Border Adjustment Based on Carbon Intensity

Overview

  • Bill number and title: HR 6787 — “to amend the Internal Revenue Code of 1986 to create a carbon border adjustment based on carbon intensity, and for other purposes.”
  • Purpose (as stated in title): Establish a carbon border adjustment mechanism that bases adjustments on the carbon intensity of goods, intended to address carbon emissions embedded in imported products and related economic impacts.
  • Status: Introduced in the U.S. House of Representatives.
  • Introduced: December 17, 2025.
  • Initial referrals:
    • Committee on Ways and Means
    • Committee on Energy and Commerce
    • Committee on Foreign Affairs
    • Referral for consideration of provisions within each committee’s jurisdiction

Purpose and intent

  • Create a carbon border adjustment mechanism (CBAM) that uses carbon intensity as the key metric.
  • Align with broader U.S. climate and competitiveness objectives by pricing or offsetting the carbon content of imported goods relative to domestic production.
  • Potentially preserve or enhance domestic emission reduction incentives by influencing import prices and competitive dynamics.

Key provisions (high-level, based on the bill’s title)

Note: The full text is not provided here. The following reflects typical elements of a carbon border adjustment framework and what this bill would be expected to address, given its title.
- Amendment to the Internal Revenue Code: The bill would modify tax-related provisions to implement a CBAM.
- Carbon intensity standard: Establish a methodology to measure the carbon intensity of goods (likely expressed as emissions per unit of product or per monetary value).
- Border adjustment mechanism: Impose an adjustment on imports based on the assessed carbon intensity, creating parity with domestic production costs that include carbon-related considerations.
- Compliance and administration: Provisions to determine who pays the adjustment, how adjustments are calculated, and how importers report and remit the carbon-based charge or receive credits.
- Credit or rebate mechanisms (potential): Possible systems to credit or rebate carbon-related costs for certain activities, sectors, or exporters meeting defined standards.
- Interactions with domestic incentives: Provisions to coordinate with U.S. domestic carbon pricing, incentives, or tax credits to avoid double counting or unintended economic distortions.
- Definitions and scope: Definitions of covered goods, sectors, and carbon accounting methods; rules for determining carbon intensity and lifecycle emissions.

Important: Without the full text, these provisions reflect common CBAM design features that such a bill would typically address. The precise definitions, thresholds, rates, exemptions, and administrative details would be specified in the bill’s text.

Who would be affected

  • Importers and exporters: Entities engaged in bringing goods into the United States from abroad would face carbon intensity-based adjustments at the border, influencing pricing and compliance obligations.
  • Domestic producers: U.S. manufacturers could be affected indirectly through competitive dynamics, as imports face carbon-based adjustments that could affect relative pricing.
  • Customs and tax administration: Federal agencies (likely including Customs and IRS components) would administer reporting, calculation, and collection of adjustments.
  • Industry sectors: Sectors with higher embedded emissions in traded goods (e.g., energy-intensive manufacturing, steel, cement, chemicals) could experience greater impact, depending on the scope of covered goods and carbon intensity scoring.

Procedural and timeline aspects

  • Introduction date: December 17, 2025.
  • Committee referrals: Ways and Means, Energy and Commerce, and Foreign Affairs, indicating the bill’s fiscal, energy, export/import, and international policy considerations will be reviewed.
  • Next steps (typical):
    • Committee markup and debate on provisions within jurisdiction
    • Potential amendments and votes in committee
    • Floor consideration by the House of Representatives
    • If advanced, potential progression to the Senate and conference negotiations (not guaranteed)

Potential impacts and considerations

  • Economic impact: Could affect import prices, domestic competition, and supply chains, particularly for carbon-intensive goods.
  • Climate policy impact: Aims to strengthen U.S. carbon pricing signals for imports, complementing domestic reductions.
  • Trade considerations: Likely to raise questions about compatibility with international trade rules and potential retaliation; would require careful design to withstand trade-law scrutiny.
  • Administrative burden: Assumes development of methodologies to measure and verify carbon intensity, with ongoing reporting requirements for importers.

If you’d like, I can tailor this summary to a specific audience (policy professionals, business stakeholders, or general readers) or add a comparison with existing CBAM proposals from other jurisdictions.

Compiled from official sources — confirm details with the bill’s official record.

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