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Tax Credits for US Rare Earth Magnet Production

This new law introduces tax credits for companies manufacturing rare earth magnets within the United States. The aim is to support domestic production of these critical components, potentially impacting the availability and cost of products using these magnets, and fostering job creation in the sector. The credits will be phased out after 2030.
Key points
Companies producing rare earth magnets in the US can receive a tax credit of $20 or $30 per kilogram, depending on the origin of the raw materials.
The credit is not applicable if raw materials for magnet production originate from "non-allied foreign nations".
The tax credit program will be gradually phased out starting in 2031 and will completely end after 2033.
Businesses can opt for a direct payment of the credit instead of a tax deduction.
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Additional Information
Print number: 117_S_4680
Sponsor: Sen. Cortez Masto, Catherine [D-NV]
Process start date: 2022-07-28
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Summarized by: gemini-2.5-flash-preview-05-20
Source data: api.congress.gov
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OFFICIAL LEGAL TITLE

Rare Earth Magnet Manufacturing Production Tax Credit Act of 2022

FREQUENTLY ASKED QUESTIONS

What is the official ID of this bill?

The official print number for this legislation is 117_S_4680.

Which chamber initiated this legislation?

This legislation was initiated in the Senate.

When did the legislative process begin?

The process officially started on 2022-07-28.

What are the main provisions?

Key points include:

  • Companies producing rare earth magnets in the US can receive a tax credit of $20 or $30 per kilogram, depending on the origin of the raw materials.
  • The credit is not applicable if raw materials for magnet production originate from "non-allied foreign nations".
  • The tax credit program will be gradually phased out starting in 2031 and will completely end after 2033.
  • Businesses can opt for a direct payment of the credit instead of a tax deduction.
What is the specific legal status?

The current status is Expired.

Where can I read the full text of this legislation?

The full official text is available at: View full text

Who is the primary sponsor?

The primary sponsor is Sen. Cortez Masto, Catherine [D-NV].

What is the latest detailed status?

The latest detailed status is: Introduced in Senate

Is this summary verified?

Yes. This content was analyzed by AI and verified by the Lustra Judge System on 2025-12-29.

CATEGORIES

Taxes Economy