Summary: This bill would add Section 45U to the Internal Revenue Code of 1986, establishing a tax credit for rare earth minerals. The proposed credit is $20/kilogram for rare earth magnets manufactured in the United States and $30/kilogram for rare earth magnets in which all components are domestically produced. The tax credit will phase out after 2030, decreasing to 70% in 2031, 35% in 2032, and 0% in 2033. The tax credit does not apply to any rare-earth magnet containing components sourced from a non-allied foreign nation.
- Sponsor: Rep. Swalwell (D-CA-15)
- Cosponsor(s): Rep. Reschenthaler (R-PA-14), Rep. Gonzalez (D-TX-15), Rep. Horsford (D-NV-4), Rep. Cueller (D-TX-28), Rep. Yarmuth (D-KY-3), Rep. McKinley (R-WV-1), Rep. Obernolte (R-CA-28), Rep. Calvert (R-CA-28), Rep. Johnson (R-OH-6)
- ZETA’s Policy Recommendation: Create a Domestic Manufacturing Tax Credit