,,ii #aafth ,,congress #b;d ,session ,s4 #cfid ,,in ,,the ,,senate ,,of ,,the ,,united ,,states ,may #ab1 #bjbj,mr4 ,cruz introduced the following bill2 which was read twice and referred to the ,committee on ,finance ,a ,,bill ,to amend the ,internal ,revenue ,code of #aihf to permanently allow a tax deduction at the time an investment is made in property used to extract critical minerals and metals from the ,united ,states1 to modify the prohibition on the acquisition of certain sensitive materials from non-allied foreign nations1 and for other purposes4 #a4 ,short title ,this ,act may be cited as the ,onshoring ,rare ,earths ,act of #bjbj or the ,,ore ,act4 #b4 ,permanent full expensing for property used to extract critical minerals and metals within the ,united ,states 7a7 ,in general ,section #afh7k7 of the ,internal ,revenue ,code of #aihf is amended by adding at the end the following3 7#aa7 ,special rule for property used in the extraction of critical minerals and metals within the ,united ,states 7,a7 ,in general ,in the case of any qualified property which is directly involved in extracting critical minerals and metals from deposits in the ,united ,states-- 7i7 paragraph 7#b77;,a77iii7 shall not apply1 and 7ii7 the applicable percentage shall be #ajj percent4 7,b7 ,critical minerals and metals ,for purposes of this paragraph1 the term critical minerals and metals means cerium1 cobalt1 dysprosium1 erbium1 europium1 gadolinium1 graphite1 holmium1 lanthanum1 lithium1 lutetium1 manganese1 neodymium1 praseodymium1 promethium1 samarium1 scandium1 terbium1 thulium1 ytterbium1 and yttrium4 4 7b7 ,effective date ,the amendment made by this section shall apply to property placed in service after ,december #ca1 #bjai4 #c4 ,permanent full expensing for nonresidential real property used in the extraction of critical minerals and metals within the ,united ,states 7a7 ,in general ,section #afh of the ,internal ,revenue ,code of #aihf is amended by adding at the end the following new subsection3 7n7 ,special allowance for nonresidential real property used in the extraction of critical minerals and metals within the ,united ,states 7#a7 ,new structures ,in the case of any qualified real property-- 7,a7 7i7 if such property is placed in service on or after the date of enactment of this subsection1 the depreciation deduction provided by section #afg7;a7 for the taxable year in which such property is placed in service shall include an allowance equal to #ajj percent of the adjusted basis of such property1 or 7ii7 if such property was placed in service before the date of enactment of this subsection1 the depreciation deduction provided by section #afg7;a7 for the first taxable year beginning after such date shall include an allowance equal to #ajj percent of the adjusted basis of such property1 and 7,b7 the adjusted basis of such property shall be reduced by the amount of such deduction before computing the amount otherwise allowable as a depreciation deduction under this chapter for such taxable year and any subsequent taxable year4 7#b7 ,qualified real property ,for purposes of this subsection1 the term qualified real property means any nonresidential real property which is directly involved in extracting critical minerals and metals 7as defined in subsection 7k77#aa77;,b77 from deposits in the ,united ,states4 4 7b7 ,effective date ,the amendment made by this section shall apply to taxable years beginning after ,december #ca1 #bjai4 #d4 ,deduction for purchase of critical minerals and metals extracted within the ,united ,states 7a7 ,in general ,part ,,vi of subchapter ,b of chapter #a of the ,internal ,revenue ,code of #aihf is amended by inserting after section #agf the following new section3 #agg4 ,deduction for purchase of critical minerals and metals extracted within the ,united ,states 7a7 ,allowance of deduction ,there shall be allowed as a deduction for the taxable year an amount equal to #bjj percent of the cost paid or incurred by the taxpayer for the purchase or acquisition of critical minerals and metals 7as defined in section #afh7k77#aa77;,b77 which have been extracted from deposits in the ,united ,states4 7b7 ,application with other deductions ,no deduction shall be allowed under any other provision of this chapter with respect to any expenditure with respect to which a deduction is allowed or allowable under this section to the taxpayer4 4 7b7 ,conforming amendment ,the table of sections for part ,,vi of subchapter ,b of chapter #a of the ,internal ,revenue ,code of #aihf is amended by inserting after the item relating to section #agf the following new item3 ,sec4 #agg4 ,deduction for purchase of critical minerals and metals extracted within the ,united ,states4 4 7c7 ,effective date ,the amendments made by this section shall apply to amounts paid or incurred after ,december #ca1 #bjai4 #e4 ,modification of prohibition on acquisition of certain sensitive materials 7a7 ,extension of prohibition to mined1 refined1 and separated materials ,subsection 7a77#a7 of section #becc;c of title #aj1 ,united ,states ,code1 is amended by striking melted or produced and inserting mined1 refined1 separated1 melted1 or produced4 7b7 ,commercially available off-the-,shelf item exception ,subsection 7c77#c77;,a77i7 of such section is amended by striking #ej percent or more tungsten and inserting #ej percent or more covered material4 #f4 ,grant program for development of critical minerals and metals 7a7 ,establishment ,the ,secretary of ,defense1 in consultation with the ,secretary of the ,interior1 shall establish a grant program to finance pilot projects for the development of critical minerals and metals in the ,united ,states4 7b7 ,limitation on grant awards ,a grant awarded under subsection 7a7 may not exceed #aj1jjj1jjj4 7c7 ,economic viability ,in awarding grants under subsection 7a71 the ,secretary of ,defense shall give priority to projects the ,secretary determines are likely to be economically viable over the long term4 7d7 ,secondary recovery ,in awarding grants under subsection 7a7 during a fiscal year1 the ,secretary of ,defense shall seek to award not less than #cj percent of the total amount of grants awarded during that fiscal year for projects relating to secondary recovery of critical minerals and metals4 7e7 ,authorization of appropriations ,there are authorized to be appropriated to the ,secretary of ,defense #ej1jjj1jjj for each of fiscal years #bjba through #bjbd to carry out the grant program established under subsection 7a74 7f7 ,definitions ,in this section3 7#a7 ,critical minerals and metals ,the term critical minerals and metals means cerium1 cobalt1 dysprosium1 erbium1 europium1 gadolinium1 graphite1 holmium1 lanthanum1 lithium1 lutetium1 manganese1 neodymium1 praseodymium1 promethium1 samarium1 scandium1 terbium1 thulium1 ytterbium1 and yttrium4 7#b7 ,secondary recovery ,the term secondary recovery means the recovery of minerals and metals from discarded end-use products or from waste products produced during the metal refining and manufacturing process1 including from mine waste piles1 acid mine drainage sludge1 or byproducts produced through legacy mining and metallurgy activities4