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Tax Credit for Domestic Production of Rare Earth Magnets and Supply Chain Security.

This legislation establishes a new tax credit for companies manufacturing rare earth magnets within the United States, components critical for advanced technologies like electric vehicles and wind turbines. The goal is to strengthen the domestic supply chain and reduce reliance on foreign sources, indirectly supporting economic stability and national security. The credit is higher if raw materials are also sourced domestically, and it is prohibited if materials originate from 'non-allied foreign nations'.
Key points
US manufacturers of rare earth magnets receive a tax credit of $20 per kilogram, increasing to $30 per kilogram if at least 90% of the raw materials are sourced domestically.
The credit is designed to boost economic security and domestic production, but it is prohibited if raw materials originate from 'non-allied foreign nations'.
The incentive program applies to taxable years starting after 2023 and will be gradually phased out beginning in 2033, ending completely after 2035.
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Additional Information
Print number: 118_S_3521
Sponsor: Sen. Cortez Masto, Catherine [D-NV]
Process start date: 2023-12-14
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Summarized by: gemini-flash-latest
Source data: api.congress.gov
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OFFICIAL LEGAL TITLE

Rare Earth Magnet Manufacturing Production Tax Credit Act of 2023

FREQUENTLY ASKED QUESTIONS

What is the official ID of this bill?

The official print number for this legislation is 118_S_3521.

Which chamber initiated this legislation?

This legislation was initiated in the Senate.

When did the legislative process begin?

The process officially started on 2023-12-14.

What are the main provisions?

Key points include:

  • US manufacturers of rare earth magnets receive a tax credit of $20 per kilogram, increasing to $30 per kilogram if at least 90% of the raw materials are sourced domestically.
  • The credit is designed to boost economic security and domestic production, but it is prohibited if raw materials originate from 'non-allied foreign nations'.
  • The incentive program applies to taxable years starting after 2023 and will be gradually phased out beginning in 2033, ending completely after 2035.
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 2025-12-26.

CATEGORIES

Taxes Economy