I 

116TH CONGRESS 

2D SESSION H. R. 7812 

To amend the Internal Revenue Code of 1986 to permanently allow a tax 

deduction at the time an investment is made in property used to extract 

critical minerals and metals from the United States, to modify the 

prohibition on the acquisition of certain sensitive materials from nonallied foreign nations, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

JULY 29, 2020 

Mr. JOYCE of Pennsylvania introduced the following bill; which was referred 

to the Committee on Ways and Means, and in addition to the Committee 

on Armed Services, for a period to be subsequently determined by the 

Speaker, in each case for consideration of such provisions as fall within 

the jurisdiction of the committee concerned 

A BILL 

To amend the Internal Revenue Code of 1986 to permanently 

allow a tax deduction at the time an investment is made 

in property used to extract critical minerals and metals 

from the United States, to modify the prohibition on 

the acquisition of certain sensitive materials from nonallied foreign nations, and for other purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 


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1 SECTION 1. SHORT TITLE. 

2 This Act may be cited as the ‘‘Onshoring Rare 

3 Earths Act of 2020’’ or the ‘‘ORE Act’’. 

4 SEC. 2. PERMANENT FULL EXPENSING FOR PROPERTY 

5 USED TO EXTRACT CRITICAL MINERALS AND 

6 METALS WITHIN THE UNITED STATES. 

7 (a) IN GENERAL.—Section 168(k) of the Internal 

8 Revenue Code of 1986 is amended by adding at the end 

9 the following: 

10 ‘‘(11) SPECIAL RULE FOR PROPERTY USED IN

11 THE EXTRACTION OF CRITICAL MINERALS AND MET12 ALS WITHIN THE UNITED STATES.— 

13 ‘‘(A) IN GENERAL.—In the case of any 

14 qualified property which is directly involved in 

15 extracting critical minerals and metals from de16 posits in the United States— 

17 ‘‘(i) paragraph (2)(A)(iii) shall not 

18 apply, and 

19 ‘‘(ii) the applicable percentage shall be 

20 100 percent. 

21 ‘‘(B) CRITICAL MINERALS AND METALS.— 

22 For purposes of this paragraph, the term ‘crit23 ical minerals and metals’ means cerium, cobalt, 

24 dysprosium, erbium, europium, gadolinium, 

25 graphite, holmium, lanthanum, lithium, lute26 tium, manganese, neodymium, praseodymium, 


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1 promethium, samarium, scandium, terbium, 

2 thulium, ytterbium, and yttrium.’’. 

3 (b) EFFECTIVE DATE.—The amendment made by 

4 this section shall apply to property placed in service after 

5 December 31, 2019. 

6 SEC. 3. PERMANENT FULL EXPENSING FOR NONRESIDEN7 TIAL REAL PROPERTY USED IN THE EXTRAC8 TION OF CRITICAL MINERALS AND METALS 

9 WITHIN THE UNITED STATES. 

10 (a) IN GENERAL.—Section 168 of the Internal Rev11 enue Code of 1986 is amended by adding at the end the 

12 following new subsection: 

13 ‘‘(n) SPECIAL ALLOWANCE FOR NONRESIDENTIAL

14 REAL PROPERTY USED IN THE EXTRACTION OF CRITICAL

15 MINERALS AND METALS WITHIN THE UNITED STATES.— 

16 ‘‘(1) NEW STRUCTURES.—In the case of any 

17 qualified real property— 

18 ‘‘(A)(i) if such property is placed in service 

19 on or after the date of enactment of this sub20 section, the depreciation deduction provided by 

21 section 167(a) for the taxable year in which 

22 such property is placed in service shall include 

23 an allowance equal to 100 percent of the ad24 justed basis of such property, or 


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1 ‘‘(ii) if such property was placed in service 

2 before the date of enactment of this subsection, 

3 the depreciation deduction provided by section 

4 167(a) for the first taxable year beginning after 

5 such date shall include an allowance equal to 

6 100 percent of the adjusted basis of such prop7 erty, and 

8 ‘‘(B) the adjusted basis of such property 

9 shall be reduced by the amount of such deduc10 tion before computing the amount otherwise al11 lowable as a depreciation deduction under this 

12 chapter for such taxable year and any subse13 quent taxable year. 

14 ‘‘(2) QUALIFIED REAL PROPERTY.—For pur15 poses of this subsection, the term ‘qualified real 

16 property’ means any nonresidential real property 

17 which is directly involved in extracting critical min18 erals and metals (as defined in subsection 

19 (k)(11)(B)) from deposits in the United States.’’. 

20 (b) EFFECTIVE DATE.—The amendment made by 

21 this section shall apply to taxable years beginning after 

22 December 31, 2019. 


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1 SEC. 4. DEDUCTION FOR PURCHASE OF CRITICAL MIN2 ERALS AND METALS EXTRACTED WITHIN THE 

3 UNITED STATES. 

4 (a) IN GENERAL.—Part VI of subchapter B of chap5 ter 1 of the Internal Revenue Code of 1986 is amended 

6 by inserting after section 176 the following new section: 

7 ‘‘SEC. 177. DEDUCTION FOR PURCHASE OF CRITICAL MIN8 ERALS AND METALS EXTRACTED WITHIN THE 

9 UNITED STATES. 

10 ‘‘(a) ALLOWANCE OF DEDUCTION.—There shall be 

11 allowed as a deduction for the taxable year an amount 

12 equal to 200 percent of the cost paid or incurred by the 

13 taxpayer for the purchase or acquisition of critical min14 erals and metals (as defined in section 168(k)(11)(B)) 

15 which have been extracted from deposits in the United 

16 States. 

17 ‘‘(b) APPLICATION WITH OTHER DEDUCTIONS.—No 

18 deduction shall be allowed under any other provision of 

19 this chapter with respect to any expenditure with respect 

20 to which a deduction is allowed or allowable under this 

21 section to the taxpayer.’’. 

22 (b) CONFORMING AMENDMENT.—The table of sec23 tions for part VI of subchapter B of chapter 1 of the Inter24 nal Revenue Code of 1986 is amended by inserting after 

25 the item relating to section 176 the following new item: 


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‘‘Sec. 177. Deduction for purchase of critical minerals and metals extracted 

within the United States.’’. 

1 (c) EFFECTIVE DATE.—The amendments made by 

2 this section shall apply to amounts paid or incurred after 

3 December 31, 2019. 

4 SEC. 5. MODIFICATION OF PROHIBITION ON ACQUISITION 

5 OF CERTAIN SENSITIVE MATERIALS. 

6 (a) EXTENSION OF PROHIBITION TO MINED, RE7 FINED, AND SEPARATED MATERIALS.—Subsection (a)(1) 

8 of section 2533c of title 10, United States Code, is amend9 ed by striking ‘‘melted or produced’’ and inserting ‘‘mined, 

10 refined, separated, melted, or produced’’. 

11 (b) COMMERCIALLY AVAILABLE OFF-THE-SHELF

12 ITEM EXCEPTION.—Subsection (c)(3)(A)(i) of such sec13 tion is amended by striking ‘‘50 percent or more tung14 sten’’ and inserting ‘‘50 percent or more covered mate15 rial’’. 

16 SEC. 6. GRANT PROGRAM FOR DEVELOPMENT OF CRITICAL 

17 MINERALS AND METALS. 

18 (a) ESTABLISHMENT.—The Secretary of Defense, in 

19 consultation with the Secretary of the Interior, shall estab20 lish a grant program to finance pilot projects for the devel21 opment of critical minerals and metals in the United 

22 States. 


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1 (b) LIMITATION ON GRANT AWARDS.—A grant 

2 awarded under subsection (a) may not exceed 

3 $10,000,000. 

4 (c) ECONOMIC VIABILITY.—In awarding grants 

5 under subsection (a), the Secretary of Defense shall give 

6 priority to projects the Secretary determines are likely to 

7 be economically viable over the long term. 

8 (d) SECONDARY RECOVERY.—In awarding grants 

9 under subsection (a) during a fiscal year, the Secretary 

10 of Defense shall seek to award not less than 30 percent 

11 of the total amount of grants awarded during that fiscal 

12 year for projects relating to secondary recovery of critical 

13 minerals and metals. 

14 (e) AUTHORIZATION OF APPROPRIATIONS.—There 

15 are authorized to be appropriated to the Secretary of De16 fense $50,000,000 for each of fiscal years 2021 through 

17 2024 to carry out the grant program established under 

18 subsection (a). 

19 (f) DEFINITIONS.—In this section: 

20 (1) CRITICAL MINERALS AND METALS.—The 

21 term ‘‘critical minerals and metals’’ means cerium, 

22 cobalt, dysprosium, erbium, europium, gadolinium, 

23 graphite, holmium, lanthanum, lithium, lutetium, 

24 manganese, neodymium, praseodymium, proVerDate Sep 11 2014 22:38 Aug 15, 2020 Jkt 099200 PO 00000 Frm 00007 Fmt 6652 Sfmt 6201 E:\BILLS\H7812.IH H7812

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1 methium, samarium, scandium, terbium, thulium, 

2 ytterbium, and yttrium. 

3 (2) SECONDARY RECOVERY.—The term ‘‘sec4 ondary recovery’’ means the recovery of minerals 

5 and metals from discarded end-use products or from 

6 waste products produced during the metal refining 

7 and manufacturing process, including from mine 

8 waste piles, acid mine drainage sludge, or byprod9 ucts produced through legacy mining and metallurgy 

10 activities. 

Æ 


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