,,ii #aahth ,,congress #ast ,session ,s4 #ceba ,,in ,,the ,,senate ,,of ,,the ,,united ,,states ,december #ad1 #bjbc,ms4 ,cortez ,masto 7for herself and ,mr4 ,mullin7 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 establish a credit for the domestic production of rare earth magnets1 and for other purposes4 #a4 ,short title ,this ,act may be cited as the ,rare ,earth ,magnet ,manufacturing ,production ,tax ,credit ,act of #bjbc4 #b4 ,credit for production of rare earth magnets 7a7 ,in general ,subpart ,d of part ,,iv of subchapter ,a of chapter #a of the ,internal ,revenue ,code of #aihf is amended by adding after section #de;,,aa the following3 #de;,,bb4 ,credit for production of rare earth magnets 7a7 ,in general 7#a7 ,allowance of credit ,for purposes of section #ch1 the credit for production of rare earth magnets determined under this section for any taxable year is an amount equal to the sum of the credit amounts determined under subsection 7b7 with respect to rare earth magnets which are-- 7,a7 manufactured or produced by the taxpayer1 and 7,b7 sold by such taxpayer to an unrelated person during the taxable year4 7#b7 ,unrelated person 7,a7 ,in general ,for purposes of this subsection1 a taxpayer shall be treated as selling rare earth magnets to an unrelated person if such magnet is sold to such person by a person related to the taxpayer4 7,b7 ,election 7i7 ,in general ,at the election of the taxpayer 7in such form and manner as the ,secretary may prescribe71 a sale of rare earth magnets by such taxpayer to a related person shall be deemed to have been made to an unrelated person4 7ii7 ,requirement ,as a condition of1 and prior to1 any election described in clause 7i71 the ,secretary may require such information or registration as the ,secretary deems necessary for purposes of preventing duplication1 fraud1 or any improper or excessive amount determined under paragraph 7#a74 7b7 ,credit amount 7#a7 ,in general ,the amount determined under this subsection is-- 7,a7 #bj per kilogram of rare earth magnets manufactured or produced in the ,united ,states by the taxpayer during the taxable year which are not described in subparagraph 7,b71 and 7,b7 #cj per kilogram of rare earth magnets manufactured or produced in the ,united ,states by the taxpayer during the taxable year if not less than #ij percent of the component rare earth materials of such magnets are produced within the ,united ,states4 7#b7 ,phase-,out 7,a7 ,in general ,in the case of any rare earth magnet manufactured or produced after ,december #ca1 #bjcb1 the amount determined under this subsection with respect to such rare earth magnet shall be equal to the product of-- 7i7 the amount determined under paragraph 7#a7 with respect to such rare earth magnet1 as determined without regard to this subsection1 multiplied by 7ii7 the phase-out percentage described in subparagraph 7,b74 7,b7 ,phase-out percentage ,the phase-out percentage described in this paragraph is-- 7i7 in the case of any rare earth magnet manufactured or produced in calendar year #bjcc1 #gj percent1 7ii7 in the case of any rare earth magnet manufactured or produced in calendar year #bjcd or #bjce1 #ce percent1 or 7iii7 in the case of any rare earth magnet manufactured or produced after ,december #ca1 #bjce1 #j percent4 7c7 ,definitions ,for the purposes of this section-- 7#a7 ,rare earth magnet ,the term rare earth magnet means a permanent magnet comprised of-- 7,a7 an alloy of neodymium1 iron1 and boron1 which may also include praseodymium1 terbium1 or dysprosium1 or 7,b7 an alloy of samarium and cobalt1 which may also include gadolinium or any associated host mineral of a component rare earth material4 7#b7 ,component rare earth material ,the term component rare earth material means neodymium1 praseodymium1 dysprosium1 terbium1 samarium1 gadolinium1 and cobalt4 7#c7 ,manufactured ,the term manufactured means the manufacturing of a rare earth magnet1 including the alloying1 reduction1 strip casting1 milling1 sintering1 recycling1 pressing1 and metallization of component rare earth material4 7#d7 ,non-allied foreign nation ,the term non-allied foreign nation has the meaning given to the term covered nation in section #dhgb7;d7 of title #aj1 ,united ,states ,code4 7#e7 ,united ,states and possession of the ,united ,states ,the terms ,united ,states and possession of the ,united ,states have the meaning given such terms in section #fch4 7d7 ,special rules 7#a7 ,restriction on component sourcing ,no credit shall be allowed under this section with respect to a rare earth magnet if any component rare earth material used to manufacture or produce such magnet is produced in a non-allied foreign nation4 7#b7 ,trade or business requirement ,no credit shall be allowed under this section with respect to a rare earth magnet unless such magnet is manufactured or produced in the ordinary course of a trade or business of the taxpayer4 7e7 ,elective payment for production of rare earth magnets 7#a7 ,in general ,in the case of a taxpayer making an election 7at such time and in such manner as the ,secretary may provide7 under this subsection with respect to any portion of the credit allowed under subsection 7a71 such taxpayer shall be treated as making a payment against the tax imposed by this subtitle for the taxable year equal to the amount of such portion of the credit4 7#b7 ,timing ,the payment described in paragraph 7#a7 shall be treated as made on the later of the due date of the return of tax for the taxable year or the date on which such return is filed4 4 7b7 ,credit ,to be part of general business credit ,section #ch7;b7 of the ,internal ,revenue ,code of #aihf is amended by striking plus at the end of paragraph 7#dj71 by striking the period at the end of paragraph 7#da7 and inserting 1 plus1 and by adding at the end the following new paragraph3 7#db7 the credit for production of rare earth magnets determined under section #de;,,bb7a74 4 7c7 ,conforming amendment ,the table of sections for subpart ,d of part ,,iv of subchapter ,a of chapter #a of the ,internal ,revenue ,code of #aihf is amended by inserting after the item relating to section #de;,,aa the following new item3 ,sec4 #de;,,bb4 ,credit for production of rare earth magnets4 4 7d7 ,effective date ,the amendments made by this ,act shall apply to taxable years beginning after ,december #ca1 #bjbc4