“America needs to lead in the race for critical minerals, which are essential for advanced energy technologies, electronics and defense systems.”
WASHINGTON – Sen. Jon Husted (R-Ohio) led a bill to boost critical mineral production in America. The Critical Minerals Investment Tax Modernization Act would boost U.S. mining of critical minerals by reducing the tax burden on production of rare earths.
Rep. Adrian Smith (R-Neb.) introduced the companion bill to the Critical Minerals Investment Tax Modernization Act in the U.S. House of Representatives.
“America needs to lead in the race for critical minerals, which are essential for advanced energy technologies, electronics and defense systems. China actively produces six times the amount of rare earth minerals mined within our borders. This bill presents a pro-growth, free market solution that would allow companies to recover a greater portion of the cost of mining critical minerals. Supporting increased domestic production helps the U.S. close the gap,” said Husted.
“Embracing our nation’s full capacity to produce critical minerals at home is essential to growing our economy, strengthening supply chains for key industries, and keeping our homeland secure. This bill will modernize existing tax deductions to boost domestic production and ensure the United States can meet the growing need for these valuable elements. I thank Reps. Panetta and Reschenthaler for working with me on this legislation,” said Smith.
Under current law, producers of critical minerals deduct a portion of their gross income from a mineral property through percentage depletion. Percentage depletion is meant to encourage continued and consistent production of critical minerals.
The Critical Minerals Investment Tax Modernization Act would:
- Increase the depletion percentage rate for mining of rare earths and scandium from 14% to 22%.
- Match the highest depletion rate for other minerals, mineral rocks, ores and metal elements in the tax code.
Full text of the bill is available here.