,i  #aai? ,,congress  #b;d ,session  ,h4
 ,r4 #ibbg  ,,9 ,,! ,,h\se ,,(          
,,repres5tatives  ,june #i1 #bjbf,mr4   
,mool5a> 7= himself & ,mr4 ,khanna7     
introduc$ ! foll[+ bill2 :i* 0 ref]r$ to
 ! ,committee on ,ways & ,means  ,a     
,,bill  ,to am5d ! ,int]nal ,rev5ue     
,code ( #aihf to inc5tivize ! dome/ic   
production & use ( p]man5t magnets1 & = 
o!r purposes4  #a4 ,%ort title  ,?is    
,act may be cit$ z ! ,magnets ,value    
,*a9 ,support ,act ( #bjbf4  #b4        
,congressional f9d+s ,congress f9ds !   
foll[+3 7#a7 ,! ,unit$ ,/ates is        
/rategically dep5d5t on =eign           
s\rces--pr9cipally ! ,p's ,republic (   
,*9a--= magnet metals & p]man5t magnets 
us$ 9 electric motors1 g5]ators1        
robotics1 indu/rial ma*9]y1 advanc$     
electronics1 & national def5se sy/ems4  
7#b7 ,9 #bjbe1 a ,select ,committee on  
,*9a inve/igation f\nd t ! ,,prc        
gov]nm5t engag$ 9 a decadeslong /rategy 
to dom9ate ! r>e e>? supply *a94  7#c7  
,dome/ic metallization &                

magnet-manufactur+ capabilities h       
atrophi$ & require t>get$1 m>ket-ori5t$ 
inc5tives to re/ore competitive         
production & r$uce =eign dep5d5ce4  7#d7
 ,motors1 g5]ators1 robotics1 &         
high-p]=mance electronics con/itute !   
majority ( global p]man5t magnet dem& & 
are ess5tial to ! economic & national   
security ( ! ,unit$ ,/ates4  7#e7       
,re%or+ ! magnet supply *a9 requires bo?
 up/ream inc5tives = magnet metal &     
p]man5t magnet production1 & d[n/ream   
inc5tives = ! adoption ( su* mat]ials by
 indu/rial1 en]gy1 automotive1 a]ospace1
 & electronics manufactur]s4  7#f7      
,competitive m>ket inc5tives are        
necess>y to c\nt] non-m>ket =eign       
production & to /r5g!n ! dome/ic        
indu/rial base4  #c4 ,e/abli%m5t (      
magnet value *a9 support cr$it  7a7 ,9  
g5]al ,subp>t ,d ( "p ,,iv ( sub*apt] ,a
 ( *apt] #a ( ! ,int]nal ,rev5ue ,code (
 #aihf is am5d$ by add+ at ! end !      
foll[+ new section3  #de;,,bb4 ,magnet  
value *a9 support cr$it  7a7 ,all[ance (

 cr$it ,= purposes ( section #ch1 !     
magnet value *a9 support cr$it = any    
taxable ye> is an am\nt equal to ! sum  
(--  7#a7 ! p]man5t magnet production   
cr$it1  7#b7 ! magnet metal production  
cr$it1 plus  7#c7 ! r>e e>? oxide       
production cr$it4  7b7 ,p]man5t magnet  
production cr$it2 magnet metal          
production cr$it2 r>e e>? oxide         
production cr$it ,= purposes ( ?is      
section--  7#a7 ,p]man5t magnet         
production cr$it  7,a7 ,9 g5]al ,!      
p]man5t magnet production cr$it )       
respect to any eligible taxpay] = any   
taxable ye> is ! applicable am\nt )     
respect to ea* kilogram ( qualifi$      
p]man5t magnet-- 7i7 manufactur$ by su* 
taxpay] dur+ su* taxable ye> 9 ! ,unit$ 
,/ates1 &  7ii7 sold by su* taxpay] to  
an unrelat$ p]son dur+ su* taxable ye>4 
7,b7 ,applicable am\nt ,= purposes (    
subp>agraph 7,a71 ! t]m applicable am\nt
 means1 ) respect to ea* kilogram (     
qualifi$ p]man5t magnet--  7i7 #bj p]   
kilogram1 if-- 7,i7 su* p]man5t magnet  

is a r>e e>?-free p]man5t magnet1 &     
7,,ii7 none ( ! magnet metal inputs     
incorporat$ )9 su* p]man5t magnet 7     
produc$ by a prohibit$ =eign entity1    
7ii7 #bj p] kilogram1 if--  7,i7 su*    
p]man5t magnet is a high-p]=mance       
p]man5t magnet1  7,,ii7 at lea/ #ge     
p]c5t ( ! magnet metal inputs 7by       
weight7 incorporat$ )9 su* p]man5t      
magnet 7 produc$ 9 ! ,unit$ ,/ates or 9 
a p>tn] c\ntry1 &  7,,iii7 none ( !     
magnet metal inputs incorporat$ )9 su*  
p]man5t magnet 7 produc$ by a prohibit$ 
=eign entity1  7iii7 #cj p] kilogram1   
if--  7,i7 su* p]man5t magnet is a      
high-p]=mance p]man5t magnet1  7,,ii7 at
 lea/ #ij p]c5t ( ! magnet metal inputs 
7by weight7 incorporat$ )9 su* p]man5t  
magnet 7 produc$ 9 ! ,unit$ ,/ates or 9 
a p>tn] c\ntry1 &  7,,iii7 none ( !     
magnet metal inputs incorporat$ )9 su*  
p]man5t magnet 7 produc$ by a prohibit$ 
=eign entity1  7iv7 #cc p] kilogram1    
if--  7,i7 su* p]man5t magnet is an     
advanc$ high-p]=mance p]man5t magnet1   

7,,ii7 at lea/ #ge p]c5t ( ! magnet     
metal inputs 7by weight7 incorporat$ )9 
su* p]man5t magnet 7 produc$ 9 ! ,unit$ 
,/ates or 9 a p>tn] c\ntry1 &  7,,iii7  
none ( ! magnet metal inputs incorporat$
 )9 su* p]man5t magnet 7 produc$ by a   
prohibit$ =eign entity1 &  7v7 #dj p]   
kilogram1 if--  7,i7 su* p]man5t magnet 
is an advanc$ high-p]=mance p]man5t     
magnet1  7,,ii7 at lea/ #ij p]c5t ( !   
magnet metal inputs 7by weight7         
incorporat$ )9 su* p]man5t magnet 7     
produc$ 9 ! ,unit$ ,/ates or 9 a p>tn]  
c\ntry1 &  7,,iii7 none ( ! magnet metal
 inputs incorporat$ )9 su* p]man5t      
magnet 7 produc$ by a prohibit$ =eign   
entity4  7,c7 ,eligible taxpay] ,=      
purposes ( subp>agraph 7,a71 ! t]m      
eligible taxpay] means any taxpay] :o   
c]tifies to ! ,secret>y 7at su* "t & 9  
su* mann] z ! ,secret>y may prescribe7 t
 at lea/ #c p]c5t ( su* taxpay]'s annual
 dome/ic production capacity ( qualifi$ 
p]man5t magnets has be5 ma9ta9$ 9 an    
available & un5cumb]$ /ate1 capable (   

accept+ & fulfill+ ord]s plac$ pursuant 
to--  7i7 a priority rat+ "u ! ,def5se  
,priorities & ,allocations ,sy/em1 z    
e/abli%$ by ! ,def5se ,production ,act (
 #aiej1 or  7ii7 a contract ent]$ into  
"u *apt] #acg ( title #aj1 ,unit$ ,/ates
 ,code4  ,! ,secret>y may waive !       
requirem5t ( ! prec$+ s5t5ce ) respect  
to any taxpay] if ! ,secret>y det]m9es t
 su* requirem5t w\ld impose an undue    
burd5 giv5 ! taxpay]'s production scale 
or /age ( developm5t4 ,9 ! case ( a     
taxpay] :o o!rwise fails to comply ) su*
 requirem5ts1 any cr$it all[$ "u ?is    
section %all be recaptur$ 9 su* mann] z 
! ,secret>y det]m9es appropriate4  7#b7 
,magnet metal production cr$it  7,a7 ,9 
g5]al ,! magnet metal production cr$it )
 respect to any taxpay] = any taxable   
ye> is ! applicable am\nt ) respect to  
ea* kilogram ( magnet metal-- 7i7       
produc$ by su* taxpay] dur+ su* taxable 
ye> 9 ! ,unit$ ,/ates1 &  7ii7 ei!r--   
7,i7 sold by su* taxpay] to an unrelat$ 
p]son dur+ su* taxable ye> = use 9 an   

eligible production /ep1 or  7,,ii7 us$ 
by su* taxpay] = an eligible production 
/ep dur+ su* taxable ye>4  7,b7         
,applicable am\nt ,= purposes (         
subp>agraph 7,a71 ! t]m applicable am\nt
 means1 ) respect to ea* kilogram (     
magnet metal--  7i7 #ae p] kilogram1    
if-- 7,i7 at lea/ #ge p]c5t ( any r>e   
e>? oxides or metallic precursors 7by   
weight7 us$ 9 ! production ( su* magnet 
metal 7 produc$ or ref9$ 9 ! ,unit$     
,/ates or 9 a p>tn] c\ntry1 &  7,,ii7   
none ( ! magnet metal inputs 7 produc$  
by a prohibit$ =eign entity1 &  7ii7 #be
 p] kilogram1 if--  7,i7 at lea/ #ij    
p]c5t ( any r>e e>? oxides or metallic  
precursors 7by weight7 us$ 9 !          
production ( su* magnet metal 7 produc$ 
or ref9$ 9 ! ,unit$ ,/ates1 &  7,,ii7   
none ( ! magnet metal inputs 7 produc$  
by a prohibit$ =eign entity4  7,c7      
,d5ial ( cr$it ,no cr$it %all be all[$  
"u ?is section = any magnet metal )     
respect to :i* a cr$it has be5 all[$ "u 
section #de,x = ! same taxable ye>4 ,!  

taxpay] %all elect1 prior to claim+ a   
cr$it "u ?is section1 :e!r to claim su* 
cr$it "u ?is section or "u section      
#de,x1 & su* election %all be           
irrevocable = ! taxable ye>4  7#c7 ,r>e 
e>? oxide production cr$it  7,a7 ,9     
g5]al ,! r>e e>? oxide production cr$it 
) respect to any taxpay] = any taxable  
ye> is #e p] kilogram ( any qualifi$ r>e
 e>? oxide--  7i7 produc$ by su* taxpay]
 dur+ su* taxable ye> 9 ! ,unit$ ,/ates1
 &  7ii7 ei!r--  7,i7 sold by su*       
taxpay] to an unrelat$ p]son dur+ su*   
taxable ye> = use 9 an eligible         
production /ep1 or  7,,ii7 us$ by su*   
taxpay] = an eligible production /ep    
dur+ su* taxable ye>4  7,b7 ,d5ial (    
cr$it ,no cr$it %all be all[$ "u ?is    
section = any qualifi$ r>e e>? oxide )  
respect to :i* a cr$it has be5 all[$ "u 
section #de,x = ! same taxable ye>4 ,!  
taxpay] %all elect1 prior to claim+ a   
cr$it "u ?is section1 :e!r to claim su* 
cr$it "u ?is section or "u section      
#de,x1 & su* election %all be           

irrevocable = ! taxable ye>4  7c7       
,def9itions ,= purposes ( ?is section-- 
7#a7 ,qualifi$ p]man5t magnet  7,a7 ,9  
g5]al ,! t]m qualifi$ p]man5t magnet    
means any p]man5t magnet-- 7i7 :i* is   
compris$ entirely ( eligible mat]ials1 &
  7ii7 :i* is-- 7,i7 a r>e e>?-free     
p]man5t magnet1  7,,ii7 a high-p]=mance 
p]man5t magnet1  7,,iii7 an advanc$     
high-p]=mance p]man5t magnet1 or  7,,iv7
 a specifi$ p]man5t magnet4  7,b7 ,r>e  
e>?-free p]man5t magnet ,! t]m r>e      
e>?-free p]man5t magnet means any       
p]man5t magnet--  7i7 )9 :i* no r>e e>? 
elem5tal con/itu5ts are incorporat$1    
7ii7 :i* has an intr9sic co]civity      
7,h,cj7 ( at lea/ #b kiloo]/$s at #cjb  
degrees ,fahr5heit 7#aej degrees        
,celsius71 &  7iii7 :i* has a magnetic  
reman5ce 7,br7 ( at lea/ #h kilogauss   
7#j4h ,tesla7 at #fh degrees ,fahr5heit 
7#bj degrees ,celsius74  ,= purposes ( !
 prec$+ s5t5ce1 ! intr9sic co]civity &  
reman5ce requirem5ts %all be det]m9$ on 
! p]man5t magnet f9al product & may n be

 satisfi$ ?r\gh measurem5ts conduct$ on 
p[d]s1 flakes1 compacts1 billets1 or o!r
 int]m$iate precursor =ms4  7,c7        
,high-p]=mance p]man5t magnet ,! t]m    
high-p]=mance p]man5t magnet means any  
p]man5t magnet ) an intr9sic co]civity  
7,h,cj7 ( at lea/ #aj kiloo]/$s at #fh  
degrees ,fahr5heit 7#bj degrees         
,celsius74 ,= purposes ( ! prec$+       
s5t5ce1 ! intr9sic co]civity requirem5t 
%all be det]m9$ on ! p]man5t magnet f9al
 product & may n be satisfi$ ?r\gh      
measurem5ts conduct$ on p[d]s1 flakes1  
compacts1 billets1 or o!r int]m$iate    
precursor =ms4  7,d7 ,advanc$           
high-p]=mance p]man5t magnet ,! t]m     
advanc$ high-p]=mance p]man5t magnet    
means any p]man5t magnet-- 7i7 ) an     
intr9sic co]civity 7,h,cj7 ( at lea/ #bj
 kiloo]/$s at #fh degrees ,fahr5heit    
7#bj degrees ,celsius71 &  7ii7 ) a     
magnetic reman5ce 7,br7 ( at lea/ #ab   
kilogauss 7#a4b ,tesla7 at #fh degrees  
,fahr5heit 7#bj degrees ,celsius74  ,=  
purposes ( ! prec$+ s5t5ce1 ! intr9sic  

co]civity & magnetic reman5ce           
requirem5ts %all be det]m9$ on ! p]man5t
 magnet f9al product & may n be satisfi$
 ?r\gh measurem5ts conduct$ on p[d]s1   
flakes1 compacts1 billets1 or o!r       
int]m$iate precursor =ms4  7,e7         
,specifi$ p]man5t magnet  7i7 ,9 g5]al  
,! t]m specifi$ p]man5t magnet means any
 p]man5t magnet--  7,i7 )9 :i* no r>e   
e>? elem5tal con/itu5ts are incorporat$1
 &  7,,ii7 :i* is manufactur$ 9 ! ,unit$
 ,/ates--  7aa7 pursuant to a grant f1  
or contract )1 ! ,dep>tm5t ( ,def5se or 
! ,dep>tm5t ( ,en]gy-- 7,,aa7 valu$ at  
#e1jjj1jjj or great]1 & 7,,bb7          
specifically = ! production ( p]man5t   
magnets at comm]cial or pilot-production
 scale1 &  7bb7 by a taxpay] :o commits 
79 su* mann] z ! ,secret>y may          
prescribe7 to place 9 s]vice )9 ! ,unit$
 ,/ates a qualifi$ p]man5t magnet       
manufactur+ facility :i* meets su* /&>ds
 z ! ,secret>y1 9 consultation ) !      
,secret>y ( ,def5se & ! ,secret>y (     
,en]gy1 det]m9es to demon/rate          

te*nological1 supply *a91 or national   
security m]it4  ,a p]man5t magnet meet+ 
! requirem5ts ( subclauses 7,i7 & 7,,ii7
 %all be treat$ z a specifi$ p]man5t    
magnet unless ! ,secret>y1 9            
consultation ) ! ,secret>y ( ,def5se & !
 ,secret>y ( ,en]gy1 det]m9es )9 #abj   
days ( receiv+ notification f ! taxpay] 
79 su* =m & mann] z ! ,secret>y %all    
prescribe7 t su* magnet does n          
demon/rate te*nological1 supply *a91 or 
national security m]it4 ,if ! ,secret>y 
does n make su* a det]m9ation )9 #abj   
days1 ! magnet %all be conclusively     
treat$ z a specifi$ p]man5t magnet = !  
taxable ye> & all subsequ5t taxable ye>s
 until ! ,secret>y makes a det]m9ation  
to ! contr>y ^u review4 ,! ,secret>y    
%all review ea* det]m9ation "u ?is      
clause n less frequ5tly ?an e #c ye>s4  
7ii7  ,t]m9ation  ,no p]man5t magnet may
 be treat$ z a specifi$ p]man5t magnet 9
 any taxable ye> beg9n+ aft] ,decemb]   
#ca1 #bjca unless su* p]iod is ext5d$ by
 ! ,secret>y4  7,f7 ,eligible mat]ials  

,! t]m eligible mat]ials means-- 7i7    
neodymium-iron-boron alloys1  7ii7      
sam>ium-cobalt alloys1  7iii7 alnico    
alloys1  7iv7 f]rite alloys1  7v7       
iron-nitride magnets1  7vi7             
manganese-bas$ p]man5t magnet alloys1 & 
7vii7 any o!r alloy1 successor1 or      
comp\nd det]m9$ by ! ,secret>y to--     
7,i7 be appropriate = ! manufacture ( a 
p]man5t magnet describ$ 9 subp>agraph   
7,b71 7,c71 7,d71 or 7,e71 &  7,,ii7 be 
ess5tial = motors1 g5]ators1 robotics1  
en]gy sy/ems1 or advanc$ electronic     
sy/ems4  7,g7 ,manufactur$ ,! t]m       
manufactur$ means ! processes necess>y  
to =m a s9t]$ p]man5t magnet body1      
includ+ alloy production1 mill+1 press+1
 & s9t]+4 ,su* t]m includes s9t]$ magnet
 blocks1 :e!r or n subsequ5tly ma*9$1   
coat$1 or magnetiz$4  7#b7 ,qualifi$ r>e
 e>? oxide ,! t]m qualifi$ r>e e>? oxide
 means any sep>at$ r>e e>? oxide1       
includ+ neodymium oxide1 praseodymium   
oxide1 neodymium-praseodymium oxide1    
sam>ium oxide1 dysprosium oxide1 t]bium 

oxide1 dysprosium-t]bium oxide1 & su*   
o!r sep>at$ r>e e>? oxides z ! ,secret>y
 det]m9es are ess5tial to ! production (
 qualifi$ p]man5t magnets1 :i*--  7,a7  
is produc$ 9 ! ,unit$ ,/ates1  7,b7 is n
 d]iv$ f1 or process$ us+1 any mat]ials1
 te*nology1 or s]vices ( a prohibit$    
=eign entity1 &  7,c7 is produc$        
pursuant to a b9d+ (ftake agreem5t = use
 9 ! production ( r>e e>? metals1       
alloys1 or p]man5t magnets 9 ! ,unit$   
,/ates or 9 a p>tn] c\ntry4  7#c7       
,magnet metal ,! t]m magnet metal means 
neodymium1 praseodymium1                
neodymium-praseodymium alloy1           
dysprosium1 t]bium1 dysprosium-t]bium   
alloy1 sam>ium1 gadol9ium1 cobalt1 iron 
nitride1 & any successor p]man5t magnet 
precursor mat]ials4  7#d7 ,magnet metal 
input ,! t]m magnet metal input means1 =
 purposes ( calculat+ cont5t ?re%old "u 
?is section1 ! r>e e>? elem5tal metallic
 con/itu5ts int5tionally incorporat$    
into a p]man5t magnet alloy to imp>t or 
enhance p]man5t magnetic prop]ties1     

includ+ neodymium1 praseodymium1        
neodymium-praseodymium alloys1          
dysprosium1 t]bium1 dysprosium-t]bium   
alloy1 sam>ium1 gadol9ium1 & any o!r r>e
 e>? elem5t li/$ z a magnet metal "u    
p>agraph 7#c71 measur$ on a             
conta9$-metal basis4 ,p]man5t magnets t 
d n incorporate r>e e>? elem5tal        
con/itu5ts & t are describ$ 9           
subp>agraph 7,b71 7,c71 7,d71 or 7,e7 ( 
p>agraph 7#a7 %all be deem$ to satisfy !
 magnet metal input requirem5ts (       
clauses 7i7 ?r\gh 7v7 ( subsection      
7b77#a77;,b7 )\t fur!r ?re%old          
calculation4  7#e7 ,eligible production 
/ep ,! t]m eligible production /ep      
means--  7,a7 ! manufactur+ ( qualifi$  
p]man5t magnets = purposes ( ! p]man5t  
magnet production cr$it1  7,b7 !        
production ( magnet metals = purposes ( 
! magnet metal production cr$it1 &  7,c7
 ! production ( qualifi$ r>e e>? oxides 
= purposes ( ! r>e e>? oxide production 
cr$it4  7#f7 ,p>tn] c\ntry  7,a7 ,9     
g5]al ,! t]m p>tn] c\ntry means--  7i7  

any memb] /ate ( ! ,nor? ,atlantic      
,treaty ,organization1  7ii7 ,japan1    
7iii7 ,au/ralia1  7iv7 ,s\? ,korea1  7v7
 ,canada1 &  7vi7 ,mexico4  7,b7        
,facility designation ,! ,secret>y1 9   
consultation ) ! ,secret>y ( ,def5se1 ! 
,secret>y ( ,comm]ce1 & ! ,unit$ ,/ates 
,trade ,repres5tative1 may designate a  
specific facility locat$ 9 a non-p>tn]  
c\ntry z a qualify+ facility = purposes 
( ?is section if ! ,secret>y det]m9es   
t-- 7i7 ! facility is n own$1 controll$1
 or influ5c$ by a prohibit$ =eign       
entity1  7ii7 ! facility op]ates "u     
supply *a9 transp>5cy1 traceability1 &  
export control practices consi/5t ) ^?  
requir$ ( facilities locat$ 9 p>tn]     
c\ntries1 &  7iii7 su* designation %all 
s]ve ! national security & supply *a9   
resili5ce objectives ( ?is section4     
,mat]ials produc$ at a facility         
designat$ "u ! prec$+ s5t5ce %all be    
treat$ z produc$ 9 a p>tn] c\ntry =     
purposes ( ?is section4 ,! ,secret>y    
%all submit to ,congress notification ( 

any su* designation n lat] ?an #cj days 
be=e x takes effect1 & %all review ea*  
designation n less frequ5tly ?an e #c   
ye>s4  7#g7 ,prohibit$ =eign entity ,!  
t]m prohibit$ =eign entity has ! mean+  
giv5 su* t]m 9 section                  
#ggja7;a77#ea77;,a74  7d7 ,special rules
 ,= purposes ( ?is section--  7#a7      
,election requir$ ,?is section %all n   
apply unless ! taxpay] has elect$ 7at   
su* "t & 9 su* mann] z ! ,secret>y may  
prescribe7 ! application ( ?is section4 
,su* election %all apply to ! taxable   
ye> = :i* x is made & all subsequ5t     
taxable ye>s & may n be revok$4  7#b7   
,d5ial ( d\ble b5efit ,no cr$it %all be 
all[$ "u ?is section ) respect to any   
mat]ial = :i* a cr$it is grant$ "u      
section #de,x4  7#c7 ,prohibit$ =eign   
entity re/riction  7,a7 ,9 g5]al ,no    
cr$it %all be all[$ "u ?is section = any
 mat]ial-- 7i7 metalliz$1 alloy$1 or    
ref9$ by a prohibit$ =eign entity1  7ii7
 manufactur$ z a p]man5t magnet by a    
prohibit$ =eign entity1  7iii7 :i*      

incorporates magnet metals s\rc$ f a    
prohibit$ =eign entity1 or  7iv7 sold or
 transf]r$ by ! taxpay] to a prohibit$  
=eign entity4  7,b7 ,waiv]s2 reports ,! 
,secret>y may provide waiv]s = p]iods ( 
no long] ?an #ij days at a "t if no     
comm]cially reasonable non-prohibit$    
=eign entity alt]native is available4 ,n
 lat] ?an #cj days aft] grant+ any waiv]
 "u ?is subp>agraph1 ! ,secret>y %all   
submit to ! ,committee on ,ways & ,means
 ( ! ,h\se ( ,repres5tatives & !        
,committee on ,f9ance ( ! ,s5ate a      
report describ+--  7i7 ! id5tity ( !    
recipi5t1  7ii7 ! specific prohibit$    
=eign entity mat]ial or input = :i* !   
waiv] 0 grant$1  7iii7 ! duration ( !   
waiv]1 &  7iv7 ! basis = ! ,secret>y's  
det]m9ation t no comm]cially reasonable 
non-prohibit$ =eign entity alt]native 0 
available4  7#d7 ,ti]$ application (    
cr$its  7,a7 ,9 g5]al ,a sep>ate cr$it  
%all be all[$ "u ?is section = ea*      
eligible production /ep p]=m$ by !      
taxpay] 9 ! ,unit$ ,/ates1 provid$ t no 

m ?an "o cr$it %all be all[$ p] eligible
 production /ep ) respect to ! same     
quantity ( mat]ial4  7,b7 ,no d\ble     
c\nt+ ,a cr$it %all n be all[$ "u ?is   
section = any quantity ( mat]ial = :i* a
 cr$it has already be5 claim$ "u ! same 
eligible production /ep by any taxpay]4 
7,c7 ,coord9ation rule ,! ,secret>y %all
 prescribe regulations to prev5t        
duplication ( cr$its "u ?is section &   
any successor provision ) respect to !  
same quantity ( mat]ial4  7#e7          
,ineligible mat]ials ,no cr$it %all be  
all[$ "u ?is section ) respect to--     
7,a7 any r>e e>? oxide1 includ+ a       
qualifi$ r>e e>? oxide1 unless su* oxide
 is produc$ pursuant to a b9d+ (ftake   
agreem5t = use 9 ! production ( an      
eligible r>e e>? metal1 alloy1 or       
p]man5t magnet = :i* a cr$it is all[able
 "u ?is section1  7,b7 any r>e e>?      
oxide1 metal1 alloy1 or p]man5t magnet t
 is produc$ = /ockpil+1 resale1 or      
export1 except t a r>e e>? oxide1 metal1
 alloy1 or p]man5t magnet--  7i7 :i* is 

export$ to a p>tn] c\ntry pursuant to a 
b9d+ (ftake agreem5t = use 9 an eligible
 production /ep t w\ld qualify "u ?is   
section if p]=m$ 9 ! ,unit$ ,/ates %all 
n be treat$ z export = purposes ( ?is   
subp>agraph1 z c]tifi$ by ! taxpay] 9   
su* =m & mann] z ! ,secret>y %all       
prescribe1 &  7ii7 :i* is sold to !     
,unit$ ,/ates ,gov]nm5t1 pursuant to a  
program or au?ority e/abli%$ = national 
security1 def5se read9ess1 or /rategic  
mat]ials res]ve purposes %all n be      
treat$ z /ockpil+ = purposes ( ?is      
subp>agraph1 or  7,c7 any mat]ial )     
respect to :i* a cr$it has previ\sly be5
 all[$ "u ?is section or any successor  
provision = ! same quantity ( mat]ial4  
7#f7 ,disclosure & report+ requirem5ts  
7,a7 ,9 g5]al ,no cr$it %all be all[$ "u
 ?is section unless ! taxpay] submits1  
at su* "t & 9 su* mann] z ! ,secret>y   
may prescribe1 in=mation reg>d+--  7i7 !
 orig9 & process+ locations ( any r>e   
e>? oxides1 metals1 alloys1 & p]man5t   
magnets us$ 9 any eligible production   

/ep1  7ii7 ! id5tification ( all mat]ial
 suppli]s & d[n/ream pur*as]s associat$ 
) any eligible production /ep1  7iii7 ! 
volume ( eligible mat]ials produc$1     
sold1 or transf]r$1  7iv7 ! exi/5ce &   
duration ( any b9d+ (ftake agreem5ts    
relevant to su* mat]ials1  7v7          
transaction prices1 price =mulas1 or    
index$ pric+ t]ms = ! sale or transf] ( 
r>e e>? oxides1 metals1 alloys1 p]man5t 
magnets1 & cov]$ d[n/ream products      
associat$ ) any eligible production /ep1
 includ+ id5tification ( any b5*m>k or  
ref]5ce index us$1 &  7vi7 su* o!r      
in=mation z ! ,secret>y det]m9es        
appropriate4  7,b7 ,use ( in=mation2    
confid5tiality ,any in=mation submitt$  
to ! ,secret>y "u subp>agraph 7,a7 may  
be us$ = supply *a9 risk assessm5t1     
m>ket monitor+1 & o!r purposes det]m9$  
appropriate by ! ,secret>y = !          
adm9i/ration ( ?is section4 ,! ,secret>y
 %all protect f public disclosure any   
in=mation submitt$ "u subp>agraph 7,a7 t
 con/itutes confid5tial bus9ess         

in=mation1 trade secrets1 or propriet>y 
comm]cial data1 consi/5t ) applicable   
law4  7e7 ,regulations ,! ,secret>y %all
 prescribe su* regulations or o!r       
guidance z may be necess>y or           
appropriate to c>ry out ! purposes ( ?is
 section4  7f7 ,t]m9ation ,?is section  
%all n apply to any taxable ye> beg9n+  
aft] ,decemb] #ca1 #bjch4  4  7b7 ,cr$it
 all[$ z "p ( g5]al bus9ess cr$it       
,section #ch7;b7 ( su* ,code is am5d$ by
 /rik+ plus at ! end ( p>agraph 7#dj71  
by /rik+ ! p]iod at ! end ( p>agraph    
7#da7 & ins]t+ 1 plus1 & by add+ at !   
end ! foll[+ new p>agraph3  7#db7 !     
magnet value *a9 support cr$it det]m9$  
"u section #de;,,bb7a74  4  7c7 ,cr$it  
transf]able ,section #fdah7;f77#a77;,a7 
( su* ,code is am5d$ by add+ at ! end ! 
foll[+ new clause3  7xiii7 ,! magnet    
value *a9 support cr$it det]m9$ "u      
section #de;,,bb7a74  4  7d7 ,cl]ical   
am5dm5t ,! table ( sections = subp>t ,d 
( "p ,,iv ( sub*apt] ,a ( *apt] #a ( su*
 ,code is am5d$ by add+ aft] ! item     

relat+ to section #de;,,aa ! foll[+ new 
item3  ,sec4 #de;,,bb4 ,magnet value *a9
 support cr$it4  4  7e7 ,effective date 
,! am5dm5ts made by ?is section %all    
apply to taxable ye>s beg9n+ aft]       
,decemb] #ca1 #bjbf4  #d4 ,e/abli%m5t ( 
dome/ic magnet input usage cr$it  7a7 ,9
 g5]al ,subp>t ,d ( "p ,,iv ( sub*apt]  
,a ( *apt] #a ( ! ,int]nal ,rev5ue ,code
 ( #aihf 7z am5d$ by section #c7;a77 is 
am5d$ by add+ at ! end ! foll[+ new     
section3  #de;,,cc4 ,dome/ic magnet     
input usage cr$it  7a7 ,all[ance ( cr$it
 ,= purposes ( section #ch1 ! dome/ic   
magnet input usage cr$it = any taxable  
ye> is an am\nt equal to ! applicable   
p]c5tage ( qualifi$ dome/ic magnet      
exp5ditures paid or incurr$ by ! taxpay]
 dur+ su* taxable ye> 9 connection ) !  
manufacture ( a cov]$ product 9 ! ,unit$
 ,/ates4  7b7 ,applicable p]c5tage ,=   
purposes ( ?is section1 ! applicable    
p]c5tage ) respect to any qualifi$      
dome/ic magnet exp5ditures paid or      
incurr$ dur+ any taxable ye> is an am\nt

 equal to--  7#a7 #ae p]c5t1 9 ! case ( 
su* exp5ditures be+ paid or incurr$ 9   
taxable ye>s beg9n+ be=e ,janu>y #a1    
#bjce1  7#b7 #aj p]c5t1 9 ! case ( su*  
exp5ditures be+ paid or incurr$ 9       
taxable ye>s beg9n+ aft] ,decemb] #ca1  
#bjcd1 & end+ be=e ,janu>y #a1 #bjcg1 & 
7#c7 #e p]c5t1 9 ! case ( su*           
exp5ditures be+ paid or incurr$ 9       
taxable ye>s beg9n+ aft] ,decemb] #ca1  
#bjcf1 & end+ be=e ,janu>y #a1 #bjci4   
7c7 ,qualifi$ dome/ic magnet exp5ditures
  7#a7 ,9 g5]al ,= purposes ( ?is       
section1 ! t]m qualifi$ dome/ic magnet  
exp5ditures means any am\nts paid or    
incurr$ by ! taxpay] to an unrelat$     
p]son = qualifi$ p]man5t magnets 7z     
def9$ 9 section #de;,,bb7c77#a77;,a77   
:i*--  7,a7 are manufactur$ 7z def9$ 9  
section #de;,,bb7c77#a77;,g77 9 ! ,unit$
 ,/ates1  7,b7 are n s\rc$ f a prohibit$
 =eign entity1 &  7,c7 are sub/antiat$  
7by docum5tation ma9ta9$ by ! taxpay] to
 ! ext5t suffici5t to support ! cr$it   
claim$ "u ?is section7 ) respect to     

pur*ase price1 suppli] id5tity1         
quantity1 & c\ntry ( production4  7#b7  
,anti-manipulation rule ,= purposes (   
p>agraph 7#a71 ! pur*ase price us$ to   
calculate qualifi$ dome/ic magnet       
exp5ditures %all n exce$ ! arm's-l5g?   
price = qualifi$ p]man5t magnets1 z     
det]m9$ "u pr9ciples consi/5t ) section 
#dhb4 ,! ,secret>y %all prescribe       
regulations e/abli%+ safe h>bors =      
arm's-l5g? pric+ ( dome/ic p]man5t      
magnets1 includ+ by ref]5ce to publi%$  
b5*m>k prices :]e available4  7d7       
,election & non-,duplication  ,a taxpay]
 %all n claim a cr$it "u ?is section =  
any qualifi$ dome/ic magnet exp5diture =
 :i* a d$uction has o!rwise be5 tak5 "u 
?is *apt]4 ,! ,secret>y %all prescribe  
regulations to prev5t any d\ble recov]y 
( ! same co/ "u bo? cr$its ) respect to 
! same quantity ( magnet mat]ial4  7e7  
,cov]$ products  7#a7 ,9 g5]al ,=       
purposes ( ?is section1 & except z      
provid$ 9 p>agraph 7#b71 ! t]m cov]$    
products means-- 7,a7 any core p[]tra9  

or g5]ation compon5t1 includ+ motors1   
g5]ators1 & rotat+ electrical ma*9]y1   
us$ 9 any high-p]=mance electronic      
device incorporat+ p]man5t magnets      
ess5tial to cool+1 actuation1 data      
/orage1 robotics1 or telecommunications1
 or  7,b7 any core p[]tra9 or g5]ation  
compon5t1 includ+ motors1 g5]ators1 &   
rotat+ electrical ma*9]y1 us$ 9 p[]     
conv]sion1 includ+ s]v]-grade comput]s1 
telecommunications equipm5t1 robotics   
sy/ems1 mann$ & unmann$ a]ial vehicles1 
mann$ & unmann$ surface vessels1 mann$ &
 unmann$ und]wat] vehicles &            
subm]sibles1 m$ical devices1 precision  
munitions1 attritable munitions1 guid$  
munitions1 infr>$ track+ sy/ems1 gimbals
 & optics1 & o!r critical def5se        
applications4  7#b7 ,exclud$ products ,=
 purposes ( p>agraph 7#a71 ! t]m cov]$  
products does n include--  7,a7 l[-p[]  
consum] appliances or disposable        
devices1 includ+ toa/]s1 bl5d]s1 basic  
kit*5 appliances1 h&held vacuums1 hair  
dry]s1 consum]-grade fans1 toys1 &      

novelty electronics1 &  7,b7 any o!r    
product t ! ,secret>y det]m9es1 by      
regulation1 to be non-/rategic =        
purposes ( ?is section1 provid$ t su*   
det]m9ation %all n apply to any product 
t ! ,secret>y f9ds to be mat]ially      
important to ,unit$ ,/ates indu/rial    
capacity1 te*nological lead]%ip1        
supply-*a9 resili5ce1 or national       
security4  7f7 ,o!r def9itions ,except z
 o!rwise provid$ 9 ?is section1 t]ms us$
 9 ?is section :i* are also us$ 9       
section #de;,,bb %all h ! same mean+ z  
:5 us$ 9 su* section4  7g7 ,prohibit$   
=eign entity re/riction ,no cr$it %all  
be all[$ "u ?is section if any p]man5t  
magnet1 magnet metal input1 or precursor
 mat]ial input us$ 9 ! cov]$ product 0  
manufactur$ by a prohibit$ =eign entity4
  7h7 ,t]m9ation ,?is section %all n    
apply to any taxable ye> beg9n+ aft]    
,decemb] #ca1 #bjch4  4  7b7 ,cr$it     
all[$ z "p ( g5]al bus9ess cr$it        
,section #ch7;b7 ( su* ,code 7z am5d$ by
 section #c7;b77 is am5d$ by /rik+ plus 

at ! end ( p>agraph 7#da71 by /rik+ !   
p]iod at ! end ( p>agraph 7#db7 & ins]t+
 1 plus1 & by add+ at ! end ! foll[+ new
 p>agraph3  7#dc7 ! dome/ic magnet input
 usage cr$it det]m9$ "u section         
#de;,,cc7a74  4  7c7 ,cl]ical am5dm5t ,!
 table ( sections = subp>t ,d ( "p ,,iv 
( sub*apt] ,a ( *apt] #a ( su* ,code 7z 
am5d$ by section #c7;d77 is am5d$ by    
add+ aft] ! item relat+ to section      
#de;,,bb ! foll[+ new item3  ,sec4      
#de;,,cc4 ,dome/ic magnet input usage   
cr$it4  4  7d7 ,effective date ,!       
am5dm5ts made by ?is section %all apply 
to taxable ye>s beg9n+ aft] ,decemb]    
#ca1 #bjbf4