,,ii  #aag? ,,congress  #b;d ,session   
,s4 #dfhj  ,,9 ,,! ,,s5ate ,,( ,,!      
,,unit$ ,,/ates  ,july #bh1 #bjbb,ms4   
,cortez ,ma/o introduc$ ! foll[+ bill2  
:i* 0 read twice & ref]r$ to !          
,committee on ,f9ance  ,a ,,bill  ,to   
am5d ! ,int]nal ,rev5ue ,code ( #aihf to
 e/abli% a cr$it = ! dome/ic production 
( r>e e>? magnets1 & = o!r purposes4    
#a4 ,%ort title ,?is ,act may be cit$ z 
! ,r>e ,e>? ,magnet ,manufactur+        
,production ,tax ,cr$it ,act ( #bjbb4   
#b4 ,cr$it = production ( r>e e>?       
magnets  7a7 ,9 g5]al ,subp>t ,d ( "p   
,,iv ( sub*apt] ,a ( *apt] #a ( !       
,int]nal ,rev5ue ,code ( #aihf is am5d$ 
by add+ at ! end ! foll[+ new section3  
#de,u4 ,cr$it = production ( r>e e>?    
magnets  7a7 ,9 g5]al ,= ! purposes (   
section #ch1 ! cr$it = production ( r>e 
e>? magnets det]m9$ "u ?is section = any
 taxable ye> is an am\nt equal to ! sum 
(-- 7#a7 #bj p] kilogram ( r>e e>?      
magnets manufactur$ 9 ! ,unit$ ,/ates by
 ! taxpay] dur+ ! taxable ye> :i* are n 

describ$ 9 p>agraph 7#b71 plus  7#b7 #cj
 p] kilogram ( r>e e>? magnets          
manufactur$ 9 ! ,unit$ ,/ates by !      
taxpay] dur+ ! taxable ye> if n less ?an
 #ij p]c5t ( ! compon5t r>e e>? mat]ial 
( su* magnets are manufactur$ )9 !      
,unit$ ,/ates4  7b7 ,phase-,out  7#a7 ,9
 g5]al ,9 ! case ( any r>e e>? magnet   
manufactur$ aft] ,decemb] #ca1 #bjcj1 ! 
am\nt det]m9$ "u ?is section ) respect  
to su* r>e e>? magnet %all be equal to !
 product (-- 7,a7 ! am\nt det]m9$ "u    
subsection 7a7 ) respect to su* r>e e>? 
magnet1 z det]m9$ )\t reg>d to ?is      
subsection1 multipli$ by  7,b7 !        
phase-out p]c5tage describ$ 9 p>agraph  
7#b74  7#b7 ,phase-out p]c5tage ,!      
phase-out p]c5tage describ$ 9 ?is       
p>agraph is-- 7,a7 9 ! case ( any r>e   
e>? magnet manufactur$ 9 cal5d> ye>     
#bjca1 #gj p]c5t1  7,b7 9 ! case ( any  
r>e e>? magnet manufactur$ 9 cal5d> ye> 
#bjcb1 #ce p]c5t1 &  7,c7 9 ! case ( any
 r>e e>? magnet manufactur$ aft]        
,decemb] #ca1 #bjcc1 #j p]c5t4  7c7     

,re/riction on compon5t s\rc+ ,! cr$it  
det]m9$ "u subsection 7a7 %all n apply )
 respect to any r>e e>? magnet if any   
compon5t r>e e>? mat]ial us$ to         
manufacture su* magnet 0 manufactur$ 9 a
 non-alli$ =eign nation4  7d7           
,def9itions ,= ! purposes ( ?is         
section-- 7#a7 ,r>e e>? magnet ,! t]m   
r>e e>? magnet means a p]man5t magnet   
compris$ (-- 7,a7 an alloy ( neodymium1 
iron1 & boron1 :i* may also include     
praseodymium1 t]bium1 or dysprosium1 or 
7,b7 an alloy ( sam>ium & cobalt1 :i*   
may also include gadol9ium or any       
associat$ ho/ m9]al ( a compon5t r>e e>?
 mat]ial4  7#b7 ,compon5t r>e e>?       
mat]ial ,! t]m compon5t r>e e>? mat]ial 
means neodymium1 praseodymium1          
dysprosium1 t]bium1 sam>ium1 gadol9ium1 
or cobalt4  7#c7 ,unit$ ,/ates &        
possession ( ! ,unit$ ,/ates ,! t]ms    
,unit$ ,/ates & possession ( ! ,unit$   
,/ates h ! mean+ giv5 su* t]ms 9 section
 #fch4  7#d7 ,manufactur$ ,! t]m        
manufactur$ means ! manufactur+ ( a r>e 

e>? magnet1 includ+ ! alloy+1 r$uction1 
/rip ca/+1 & metallization ( compon5t   
r>e e>? mat]ial4  7#e7 ,non-alli$ =eign 
nation ,! t]m non-alli$ =eign nation has
 ! mean+ giv5 to ! t]m cov]$ nation 9   
section #dhgb7;d77#b7 ( title #aj1      
,unit$ ,/ates ,code4  7e7 ,trade or     
bus9ess requirem5t ,no cr$it %all be    
all[$ "u ?is section ) respect to any   
prop]ty unless su* prop]ty is           
manufactur$ 9 ! ord9>y c\rse ( a trade  
or bus9ess ( ! taxpay]4  7f7 ,election =
 direct paym5t  7#a7 ,9 g5]al ,9 ! case 
( any r>e e>? magnets manufactur$ 9 !   
,unit$ ,/ates by ! taxpay] dur+ !       
taxable ye>1 ! am\nt ( any cr$it det]m9$
 "u subsection 7a7 ) respect to su*     
prop]ty = su* taxable ye> %all1 at !    
election ( ! taxpay]1 be treat$ z a     
paym5t equal to su* am\nt :i* is made by
 ! taxpay] aga9/ ! tax impos$ by *apt]  
#a = su* taxable ye> 7reg>dless ( :e!r  
su* tax w\ld h be5 on su* taxpay]74     
7#b7 ,=m & effect ( election ,an        
election "u p>agraph 7#a7 %all be made  

at su* "t & 9 su* mann] z ! ,secret>y   
may prescribe4 ,su* election1 once made1
 %all-- 7,a7 be irrevocable ) respect to
 ! prop]ty to :i* su* election applies1 
&  7,b7 r$uce ! am\nt ( ! cr$it :i* w\ld
 7b = ?is subsection7 be all[able "u ?is
 section ) respect to su* prop]ty = !   
taxable ye> 9 :i* su* prop]ty is        
manufactur$ to z]o4  7#c7 ,application  
to p>tn]%ips & ,s corporations ,9 ! case
 ( a p>tn]%ip or ,s corporation :i*     
makes an election "u p>agraph 7#a7--    
7,a7 su* p>agraph %all apply ) respect  
to su* p>tn]%ip or corporation )\t reg>d
 to ! fact t no tax is impos$ by *apt]  
#a on su* p>tn]%ip or corporation1 &    
7,b7 7i7 9 ! case ( a p>tn]%ip1 ea*     
p>tn]'s di/ributive %>e ( ! cr$it       
det]m9$ "u subsection 7a7 ) respect to !
 r>e e>? magnets %all be deem$ to be    
z]o1 &  7ii7 9 ! case ( an ,s           
corporation1 ea* %>ehold]'s pro rata %>e
 ( ! cr$it det]m9$ "u subsection 7a7 )  
respect to su* prop]ty %all be deem$ to 
be z]o4  4  7b7 ,cr$it ,to be "p ( g5]al

 bus9ess cr$it ,section #ch7;b7 ( !     
,int]nal ,rev5ue ,code ( #aihf is       
am5d$-- 7#a7 by /rik+ plus at ! end (   
p>agraph 7#cb71  7#b7 by /rik+ ! p]iod  
at ! end ( p>agraph 7#cc7 & ins]t+ 1    
plus1 &  7#c7 by add+ at ! end ! foll[+ 
new p>agraph3  7#cd7 ! cr$it =          
production ( r>e e>? magnets det]m9$ "u 
section #de,u7a74  4  7c7 ,con=m+       
am5dm5t ,! table ( sections = subp>t ,d 
( "p ,,iv ( sub*apt] ,a ( *apt] #a ( !  
,int]nal ,rev5ue ,code ( #aihf is am5d$ 
by add+ at ! end ! foll[+ new item3     
,sec4 #de,u4 ,cr$it = production ( r>e  
e>? magnets4  4  7d7 ,effective date ,! 
am5dm5ts made by ?is ,act %all apply to 
taxable ye>s beg9n+ aft] ,decemb] #ca1  
#bjba4