To amend the Internal Revenue Code of 1986 to permanently allow a tax deduction for the mining, reclaiming, or recycling of critical minerals and metals from the United States, and to support the development of domestic supply chains for rare earth elements and other critical materials essential to United States technology, manufacturing, energy, healthcare and advanced medical devices, broadband infrastructure, transportation, and national defense.
- Last Action
- 6/11/2021
Actions
- 2021-06-11Referred to the Subcommittee on Energy and Mineral Resources.
- 2021-04-20Referred to the Committee on Ways and Means, and in addition to the Committee on Natural Resources, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
- 2021-04-20Referred to the Committee on Ways and Means, and in addition to the Committee on Natural Resources, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
- 2021-04-20Introduced in House
- 2021-04-20Introduced in House
CRS Summary
As of 2021-04-20 (00)
This bill allows permanent expensing of property used in the mining, reclaiming, or recycling of certain critical minerals and metals within the United States and of nonresidential real property used in mining such minerals and metals. Expensing is the treatment of expenditures as operating costs deductible in full in the current taxable year.
The bill allows a new tax deduction for 200% of the cost of purchasing or acquiring such critical minerals and metals extracted from deposits in the United States and a 22% rate of percentage depletion for such critical minerals and metals.
The bill requires the Department of the Interior to establish a pilot project grant program for the development of critical minerals and metals in the United States. A grant awarded under such program may not exceed $10 million. In awarding grants, Interior must give priority to projects determined to be economically viable over the long term and must allot not less than 30% of grants funds to the secondary recovery of critical minerals and metals.
Cosponsors (6)
- Vicente Gonzalez (D-TX)
- Guy Reschenthaler (R-PA)
- Henry Cuellar (D-TX)
- Tom Reed (R-NY)
- Eric Swalwell (D-CA)
- Jim Hagedorn (R-MN)
Subjects
- Business expenses
- Business investment and capital
- Buy American requirements
- Department of the Interior
- Income tax deductions
- Materials
- Metals
- Mining
- Public contracts and procurement
- Strategic materials and reserves
Sourced from Congress.gov (public domain).
This is legal information, not legal advice. Laws vary by jurisdiction and change frequently. Always verify current law with official sources and consult a licensed attorney in your jurisdiction for advice on your specific situation.