What does Preamble of Rare Earth Magnet Security Act of 2025 do?

This bill, formally titled 'To amend the Internal Revenue Code of 1986 to establish a credit for the domestic production of high-performance rare earth magnets, and for other purposes,' aims to amend the Internal Revenue Code of 1986. The bill proposes to establish a tax credit for the domestic production of high-performance rare earth magnets.

What does SHORT TITLE. of Rare Earth Magnet Security Act of 2025 do?

This bill is formally titled the Rare Earth Magnet Security Act of 2025.

What does CREDIT FOR PRODUCTION OF RARE EARTH MAGNETS. of Rare Earth Magnet Security Act of 2025 do?

This section amends the Internal Revenue Code of 1986 to establish a credit for the production of rare earth magnets. The credit amount is $20 per kilogram for magnets manufactured in the United States, or $30 per kilogram if at least 90% of the component rare earth materials are also produced in the United States. A phase-out of the credit begins after December 31, 2034, reducing the credit percentage to 70% in 2035, 35% in 2036 and 2037, and 0% after 2037. The credit is not allowed if any component rare earth material is produced in a 'non-allied foreign nation,' with a delayed restriction for dysprosium, terbium, samarium, and gadolinium until January 1, 2027. Taxpayers can elect to treat sales to related persons as sales to unrelated persons, subject to Secretary requirements. The credit is part of the general business credit and applies to taxable years beginning after December 31, 2024.

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Rare Earth Magnet Security Act of 2025

Last updated: 2/21/2025 · Introduced: 2/21/2025

Author: Guy Reschenthaler (R-PA)

TL;DR (AI)

This bill establishes a tax credit of up to $30 per kilogram for the domestic production of high-performance rare earth magnets manufactured in the United States.
The tax credit will gradually phase out between 2035 and 2037, eventually reaching zero after 2037.
Production of component rare earth materials in designated foreign nations is prohibited to qualify for the tax credit, with a delayed restriction for specific rare earth elements until 2027.

119th Congressin committeeOfficial page

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Includes provisions on preamble, short title., and 1 more.

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