,,ii  #aai? ,,congress  #a/ ,session    
,s4 #aigi  ,,9 ,,! ,,s5ate ,,( ,,!      
,,unit$ ,,/ates  ,june #e1 #bjbe,ms4    
,cortez ,ma/o 7= h]self1 ,mr4 ,mull91 & 
,mr4 ,graham7 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$it = ! dome/ic production 
( high-p]=mance r>e e>? magnets1 & = o!r
 purposes4  #a4 ,%ort title ,?is ,act   
may be cit$ z ! ,r>e ,e>? ,magnet       
,security ,act ( #bjbe4  #b4 ,cr$it =   
production ( r>e e>? magnets  7a7 ,9    
g5]al ,! ,int]nal ,rev5ue ,code ( #aihf 
is am5d$ by ins]t+ ! foll[+ new section 
aft] section #de;,,aa3  #de;,,bb4 ,cr$it
 = production ( r>e e>? magnets  7a7 ,9 
g5]al  7#a7 ,all[ance ( cr$it ,=        
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 ( ! cr$it am\nts   
det]m9$ "u subsection 7b7 ) respect to  
r>e e>? magnets :i* are-- 7,a7          

manufactur$ or produc$ by ! taxpay]1 &  
7,b7 sold by su* taxpay] to an unrelat$ 
p]son dur+ ! taxable ye>4  7#b7         
,unrelat$ p]son  7,a7 ,9 g5]al ,=       
purposes ( ?is subsection1 a taxpay]    
%all be treat$ z sell+ r>e e>? magnets  
to an unrelat$ p]son if su* magnet is   
sold to su* p]son by a p]son relat$ to !
 taxpay]4  7,b7 ,election  7i7 ,9 g5]al 
,at ! election ( ! taxpay] 79 su* =m &  
mann] z ! ,secret>y may prescribe71 a   
sale ( r>e e>? magnets by su* taxpay] to
 a relat$ p]son %all be deem$ to h be5  
made to an unrelat$ p]son4  7ii7        
,requirem5t ,z a condition (1 & prior   
to1 any election describ$ 9 clause 7i71 
! ,secret>y may require su* in=mation or
 regi/ration z ! ,secret>y deems        
necess>y = purposes ( prev5t+           
duplication1 fraud1 or any improp] or   
excessive am\nt det]m9$ "u p>agraph     
7#a74  7b7 ,cr$it am\nt  7#a7 ,9 g5]al  
,! am\nt det]m9$ "u ?is subsection is-- 
7,a7 #bj p] kilogram ( r>e e>? magnets  
manufactur$ or produc$ 9 ! ,unit$ ,/ates

 by ! taxpay] dur+ ! taxable ye>1 &     
7,b7 #cj p] kilogram ( r>e e>? magnets  
manufactur$ or produc$ 9 ! ,unit$ ,/ates
 by ! taxpay] dur+ ! taxable ye> if n   
less ?an #ij p]c5t by weight ( !        
compon5t r>e e>? mat]ials ( su* magnets 
are produc$ )9 ! ,unit$ ,/ates4  7#b7   
,phase-,out  7,a7 ,9 g5]al ,9 ! case (  
any r>e e>? magnet manufactur$ or       
produc$ aft] ,decemb] #ca1 #bjcd1 !     
am\nt det]m9$ "u ?is section ) respect  
to su* r>e e>? magnet %all be equal to !
 product (-- 7i7 ! am\nt det]m9$ "u     
p>agraph 7#a7 ) respect to su* r>e e>?  
magnet1 z det]m9$ )\t reg>d to ?is      
subsection1 multipli$ by  7ii7 !        
phase-out p]c5tage describ$ 9           
subp>agraph 7,b74  7,b7 ,phase-out      
p]c5tage ,! phase-out p]c5tage describ$ 
9 ?is p>agraph is-- 7i7 9 ! case ( any  
r>e e>? magnet manufactur$ or produc$ 9 
cal5d> ye> #bjce1 #gj p]c5t1  7ii7 9 !  
case ( any r>e e>? magnet manufactur$ or
 produc$ 9 cal5d> ye> #bjcf or #bjcg1   
#ce p]c5t1 or  7iii7 9 ! case ( any r>e 

e>? magnet manufactur$ or produc$ aft]  
,decemb] #ca1 #bjcg1 #j p]c5t4  7c7     
,def9itions ,= ! purposes ( ?is         
section-- 7#a7 ,r>e e>? magnet ,! t]m   
r>e e>? magnet means a p]man5t magnet-- 
7,a7 ) an intr9sic co]civity 7,h,cj7 (  
#aj k,oe or high] at #fh ,f 7#bj ,c71 & 
7,b7 compris$ (-- 7i7 an alloy (        
neodymium1 iron1 & boron1 :i* may also  
include praseodymium1 t]bium1 or        
dysprosium1 or  7ii7 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 
& cobalt4  7#c7 ,manufactur$ ,! t]m     
manufactur$ means ! manufactur+ ( a r>e 
e>? magnet1 includ+ ! mill+1 press+1    
s9t]+1 & recycl+ ( compon5t r>e e>?     
mat]ial4  7#d7 ,non-alli$ =eign nation  
,! t]m non-alli$ =eign nation has !     
mean+ giv5 to ! t]m cov]$ nation 9      
section #dhgb7;f7 ( title #aj1 ,unit$   

,/ates ,code4  7#e7 ,unit$ ,/ates &     
possession ( ! ,unit$ ,/ates ,! t]ms    
,unit$ ,/ates & possession ( ! ,unit$   
,/ates h ! mean+ giv5 su* t]ms 9 section
 #fch4  7d7 ,special rules  7#a7        
,re/riction on compon5t s\rc+  7,a7 ,9  
g5]al ,except z provid$ 9 subp>agraph   
7,b7 or 7,c71 no cr$it %all be all[$ "u 
?is section ) respect to a r>e e>?      
magnet if any compon5t r>e e>? mat]ial  
us$ to manufacture or produce su* magnet
 is produc$ 9 a non-alli$ =eign nation4 
7,b7 ,delay$ re/riction = c]ta9 compon5t
 r>e e>? mat]ials ,9 ! case ( ! r>e e>? 
mat]ials dysprosium1 t]bium1 sam>ium1 & 
gadol9ium1 ! re/riction "u subp>agraph  
7,a7 %all n apply to magnets manufactur$
 or produc$ us+ su* mat]ials be=e       
,janu>y #a1 #bjbg4  7,c7 ,mat]ial seiz$ 
f non-alli$ =eign nation dur+ w>time    
7i7 ,9 g5]al ,subp>agraph 7,a7 %all n   
apply ) respect to any compon5t r>e e>? 
mat]ial :i* is seiz$ f a non-alli$ =eign
 nation dur+ w>time by-- 7,i7 ,ukra9e1  
or  7,,ii7 an alli$ c\ntry4  7ii7       

,c]tification ,= purposes ( ?is         
subp>agraph1 ! taxpay] :i* manufactur$  
or produc$ ! r>e e>? magnet %all c]tify 
to ! ,secret>y 7at su* "t1 & 9 su* =m & 
mann]1 z ! ,secret>y may prescribe7 t ! 
compon5t r>e e>? mat]ial us$ to         
manufacture or produce su* magnet       
satisfies ! requirem5ts describ$ 9      
clause 7i74  7iii7 ,alli$ c\ntry ,=     
purposes ( ?is subp>agraph1 ! t]m alli$ 
c\ntry means any ( ! foll[+3 7,i7 ,a    
c\ntry t is a memb] ( ! ,nor? ,atlantic 
,treaty ,organization4  7,,ii7          
,au/ralia1 ,new ,zeal&1 ,japan1 & !     
,republic ( ,korea4  7,,iii7 ,any o!r   
c\ntry designat$ z an alli$ c\ntry = !  
purposes ( ?is subp>agraph by !         
,secret>y 7) ! concurr5ce ( ! ,secret>y 
( ,/ate & ! ,secret>y ( ,def5se74  7#b7 
,trade or bus9ess requirem5t ,no cr$it  
%all be all[$ "u ?is section ) respect  
to a r>e e>? magnet unless su* magnet is
 manufactur$ or produc$ 9 ! ord9>y c\rse
 ( a trade or bus9ess ( ! taxpay]4  7#c7
 ,co]civity requirem5t exception =      

eligible manufactur]s  7,a7 ,9 g5]al ,! 
,secret>y may elect to treat a magnet   
:i* does n meet ! co]civity requirem5ts 
( subsection 7c77#a77;,a7 z a r>e e>?   
magnet if su* magnet is manufactur$ by  
an eligible manufactur]4  7,b7 ,eligible
 manufactur] ,= purposes ( subp>agraph  
7,a71 ! t]m eligible manufactur] means a
 manufactur] t-- 7i7 receives a grant f1
 or is contract$ by1 ! ,dep>tm5t (      
,en]gy or ! ,dep>tm5t ( ,def5se to      
produce a magnet1 &  7ii7 commits to    
place 9 s]vice a dome/ic manufactur+    
facility t produces magnets t !         
,secret>y det]m9es to demon/rate        
national security m]it4  7e7 ,elective  
paym5t = production ( r>e e>? magnets   
7#a7 ,9 g5]al ,9 ! case ( a taxpay] mak+
 an election 7at su* "t & 9 su* mann] z 
! ,secret>y may provide7 "u ?is section 
) respect to any portion ( ! cr$it all[$
 "u subsection 7a71 su* taxpay] %all be 
treat$ z mak+ a paym5t aga9/ ! tax      
impos$ by ?is subtitle = ! taxable ye>  
equal to ! am\nt ( su* portion4  7#b7   

,tim+ ,! paym5t describ$ 9 p>agraph 7#a7
 %all be treat$ z made on ! lat] ( ! due
 date ( ! return ( tax = su* taxable ye>
 or ! date on :i* su* return is fil$4  4
  7b7 ,cr$it ,to be "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 ! cr$it = production ( r>e e>?    
magnets det]m9$ "u section #de;,,bb7a74 
4  7c7 ,con=m+ am5dm5t ,! table (       
sections = subp>t ,d ( "p ,,iv (        
sub*apt] ,a ( *apt] #a ( su* ,code is   
am5d$ by ins]t+ aft] ! item relat+ to   
section #de;,,aa ! foll[+ new item3     
,sec4 #de;,,bb4 ,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 #bjbd4