Curtis, Daines Introduce Bill to Strengthen American Critical Mineral Production

Critical Mineral and Extraction Tax Parity Act would expand incentives for domestic mining, processing, and production
WASHINGTON —U.S. Senators John Curtis (R-UT) and Steve Daines (R-MT) introduced the Critical Mineral and Extraction Tax Parity Act , legislation to strengthen America’s domestic critical mineral supply chains by expanding and improving the Advanced Manufacturing Production Tax Credit under Section 45X of the Internal Revenue Code.
“The United States should not have to depend on foreign adversaries for the minerals that power our economy, support our national defense, and underpin modern technology,” said Senator Curtis. “Utah and states across the West have the resources, workers, and expertise to produce more of these materials here at home. Our bill makes sure the tax code recognizes the full cost of American mineral production and gives domestic producers a fair opportunity to compete with heavily subsidized, artificially propped-up foreign supply chains.”
“There is no reason the United States should rely on other foreign nations for critical minerals that can be found right here at home, including in Montana. I’m proud to work with Senator Curtis to expand our critical mineral supply chain and ensure fairness in the tax code for American producers and businesses. It’s time to unleash America’s natural resources to power our economy and strengthen our national security,” said Senator Daines .
Background:
Critical minerals are essential inputs for energy infrastructure, advanced manufacturing, defense systems, agriculture, electronics, and other sectors of the U.S. economy. The Critical Mineral and Extraction Tax Parity Act updates Section 45X to better reflect the economics of domestically producing those minerals, including the extraction activities necessary before refining can occur. The legislation would add several strategically important minerals to the Section 45X credit, recognize qualifying costs associated with extracting ore, and eliminate the reduced credit rate currently applied to metallurgical coal.
The legislation would strengthen and expand the Advanced Manufacturing Production Tax Credit by:
Section 45X is intended to encourage domestic production of critical components and materials essential to American manufacturing. By recognizing additional critical minerals and the costs required to extract the raw materials used to produce them, the bill would strengthen incentives to build more complete mineral supply chains in the United States and reduce reliance on foreign sources.
The full text of the bill is available here .
“To meet the nation’s surging energy demand, electric utilities need a domestic supply of energy infrastructure and equipment,” said Mike Squires, UAMPS Managing Director of Government Affairs (UAMPS) . “Much of this equipment contains critical minerals like copper that Utah produces. UAMPS is grateful for Senator Curtis’ leadership on advancing legislation that would increase critical mining and processing capacity in the United States.”
“Adding phosphate to the list of eligible minerals under section 45X of the Internal Revenue Code will greatly help domestic phosphate producers like the Simplot Company and will incentivize future investment in phosphate mining and processing,” said Garrett Lofto, President and CEO, the Simplot Company. “We very much appreciate Senator John Curtis’ leadership on this legislation and his support of strengthening the domestic supply chain for critical minerals such as phosphate.”
“The Critical Mineral and Extraction Tax Parity Act brings federal tax policy in line with today’s mineral needs by reflecting the latest U.S. Geological Survey critical minerals list and recognizing the importance of domestic extraction and production,” Lyndsey Wright, Women’s Mining Coalition Executive Director . “This commonsense legislation strengthens America’s mineral supply chains, supports a competitive domestic mining industry, and helps reduce our dependence on foreign sources for the resources our economy and national security rely on.”