Rare Earth Magnet Security Act of 2025

[Congressional Bills 119th Congress] [From the U.S. Government Publishing Office] [H.R. 1496 Introduced in House (IH)] <DOC> 119th CONGRESS 1st Session H. R. 1496 To amend the Internal Revenue Code of 1986 to establish a credit for the domestic production of high-performance rare earth magnets, and for other purposes. _______________________________________________________________________ IN THE HOUSE OF REPRESENTATIVES February 21, 2025 Mr. Reschenthaler (for himself, Mr. Swalwell, Mr. Hudson, Ms. Lee of Nevada, Mr. Calvert, Ms. Castor of Florida, Mr. Obernolte, Mr. Tonko, Mr. Moolenaar, Mr. Deluzio, Mr. Meuser, Mr. Panetta, Mr. Mills, and Ms. Houlahan) introduced the following bill; which was referred to the Committee on Ways and Means _______________________________________________________________________ A BILL To amend the Internal Revenue Code of 1986 to establish a credit for the domestic production of high-performance rare earth magnets, and for other purposes. Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, SECTION 1. SHORT TITLE. This Act may be cited as the ``Rare Earth Magnet Security Act of 2025''. SEC. 2. CREDIT FOR PRODUCTION OF RARE EARTH MAGNETS. (a) In General.--The Internal Revenue Code of 1986 is amended by inserting the following new section after section 45AA: ``SEC. 45BB. CREDIT FOR PRODUCTION OF RARE EARTH MAGNETS. ``(a) In General.-- ``(1) Allowance of credit.--For purposes of section 38, 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 (b) with respect to rare earth magnets which are-- ``(A) manufactured or produced by the taxpayer, and ``(B) sold by such taxpayer to an unrelated person during the taxable year. ``(2) Unrelated person.-- ``(A) In general.--For purposes of this subsection, a taxpayer shall be treated as selling rare earth magnets to an