The Rare Earth Magnet Security Act establishes a federal tax credit to incentivize U.S. companies to manufacture high-performance rare earth magnets domestically. Manufacturers will receive $20 per kilogram of rare earth magnets produced in the United States, with a higher credit of $30 per kilogram if at least 90 percent of the component rare earth materials are also sourced domestically. The law applies immediately to taxable years beginning after December 31, 2024, but phases out gradually starting in 2035, declining to zero by 2038. Additionally, the legislation restricts the credit for magnets containing rare earth materials sourced from non-allied foreign nations, though it delays this restriction until January 1, 2027 for certain materials like dysprosium and samarium. The credit is designed to strengthen U.S. supply chains and reduce dependence on foreign sources for rare earth magnets, which are critical components in defense systems, renewable energy, and advanced electronics.
Take Action
Your position
Add a comment
to comment on this bill.
Annotate the text
Highlight any passage on the Summary or Full Text tab to attach a note. Annotations appear on the Annotations tab.