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Tax Credits for US Rare Earth Magnet Production

This act introduces tax credits for companies manufacturing high-performance rare earth magnets in the United States. The goal is to boost domestic production of these critical materials, potentially impacting supply chain security and job creation in the technology sector. Citizens may indirectly benefit from a stronger economy and reduced reliance on foreign suppliers.
Key points
Companies producing rare earth magnets in the US will receive a tax credit of $20 per kilogram, or $30 per kilogram if at least 90% of the materials are US-sourced.
The credit will be phased out starting in 2035 and fully eliminated after 2037.
Magnets made with materials from non-allied foreign nations are not eligible for the credit, with a temporary exception for certain materials until 2027.
The act aims to strengthen the domestic supply chain for critical technologies and reduce reliance on foreign sources.
article Official text account_balance Process page
Introduced
Citizen Poll
No votes cast
Additional Information
Print number: 119_HR_1496
Sponsor: Rep. Reschenthaler, Guy [R-PA-14]
Process start date: 2025-02-21
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Summarized by: gemini-2.5-flash
Source data: api.congress.gov
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OFFICIAL LEGAL TITLE

Rare Earth Magnet Security Act of 2025

FREQUENTLY ASKED QUESTIONS

What is the official ID of this bill?

The official print number for this legislation is 119_HR_1496.

Which chamber initiated this legislation?

This legislation was initiated in the House of Representatives.

When did the legislative process begin?

The process officially started on 2025-02-21.

What are the main provisions?

Key points include:

  • Companies producing rare earth magnets in the US will receive a tax credit of $20 per kilogram, or $30 per kilogram if at least 90% of the materials are US-sourced.
  • The credit will be phased out starting in 2035 and fully eliminated after 2037.
  • Magnets made with materials from non-allied foreign nations are not eligible for the credit, with a temporary exception for certain materials until 2027.
  • The act aims to strengthen the domestic supply chain for critical technologies and reduce reliance on foreign sources.
What is the specific legal status?

The current status is Introduced.

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 Rep. Reschenthaler, Guy [R-PA-14].

What is the latest detailed status?

The latest detailed status is: Referred to the House Committee on Ways and Means.

Is this summary verified?

Yes. This content was analyzed by AI and verified by the Lustra Judge System on 2025-12-22.

CATEGORIES

Taxes Economy Security