I 

116TH CONGRESS 

2D SESSION H. R. 8143 

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

deduction at the time an investment is made in property used for the 

mining, reclaiming, or recycling of critical minerals and metals from 

the United States, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

SEPTEMBER 1, 2020 

Mr. GOODEN (for himself, Mr. GONZALEZ of Texas, Mr. HURD of Texas, Mr. 

CUELLAR, Mr. OLSON, Mr. WILLIAMS, and Mr. WEBER of Texas) introduced the following bill; which was referred to the Committee on Ways 

and Means, and in addition to the Committee on Natural Resources, 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 for the mining, reclaiming, or recycling 

of critical minerals and metals from the United States, 

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. PERMANENT FULL EXPENSING FOR PROPERTY 

2 USED TO EXTRACT CRITICAL MINERALS AND 

3 METALS WITHIN THE UNITED STATES. 

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

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

6 the following: 

7 ‘‘(11) SPECIAL RULE FOR PROPERTY USED FOR

8 MINING OF CRITICAL MINERALS AND METALS WITH9 IN THE UNITED STATES.— 

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

11 qualified property which is substantially in12 volved in the mining, reclaiming, or recycling of 

13 critical minerals and metals from deposits in 

14 the United States— 

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

16 apply, and 

17 ‘‘(ii) the applicable percentage shall be 

18 100 percent. 

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

20 For purposes of this paragraph, the term ‘crit21 ical minerals and metals’ means cerium, cobalt, 

22 dysprosium, erbium, europium, gadolinium, 

23 graphite, holmium, lanthanum, lithium, lute24 tium, manganese, neodymium, praseodymium, 

25 promethium, samarium, scandium, terbium, 

26 thulium, ytterbium, and yttrium.’’. 


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

2 this section shall apply to property placed in service after 

3 December 31, 2019. 

4 SEC. 2. PERMANENT FULL EXPENSING FOR NONRESIDEN5 TIAL REAL PROPERTY USED FOR MINING OF 

6 CRITICAL MINERALS AND METALS WITHIN 

7 THE UNITED STATES. 

8 (a) IN GENERAL.—Section 168 of the Internal Rev9 enue Code of 1986 is amended by adding at the end the 

10 following new subsection: 

11 ‘‘(n) SPECIAL ALLOWANCE FOR NONRESIDENTIAL

12 REAL PROPERTY USED FOR MINING OF CRITICAL MIN13 ERALS AND METALS WITHIN THE UNITED STATES.— 

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

15 qualified real property— 

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

17 on or after the date of enactment of this sub18 section, the depreciation deduction provided by 

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

20 such property is placed in service shall include 

21 an allowance equal to 100 percent of the ad22 justed basis of such property, or 

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

24 before the date of enactment of this subsection, 

25 the depreciation deduction provided by section 


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1 167(a) for the first taxable year beginning after 

2 such date shall include an allowance equal to 

3 100 percent of the adjusted basis of such prop4 erty, and 

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

6 shall be reduced by the amount of such deduc7 tion before computing the amount otherwise al8 lowable as a depreciation deduction under this 

9 chapter for such taxable year and any subse10 quent taxable year. 

11 ‘‘(2) QUALIFIED REAL PROPERTY.—For pur12 poses of this subsection, the term ‘qualified real 

13 property’ means any nonresidential real property 

14 which is substantially involved in the mining, re15 claiming, or recycling of critical minerals and metals 

16 (as defined in subsection (k)(11)(B)) from deposits 

17 in the United States.’’. 

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

19 this section shall apply to taxable years beginning after 

20 December 31, 2019. 


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1 SEC. 3. 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. 4. GRANT PROGRAM FOR DEVELOPMENT OF CRITICAL 

5 MINERALS AND METALS. 

6 (a) ESTABLISHMENT.—The Secretary of the Interior 

7 shall establish a grant program to finance pilot projects 

8 for the development of critical minerals and metals in the 

9 United States. 

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

11 awarded under subsection (a) may not exceed 

12 $10,000,000. 

13 (c) ECONOMIC VIABILITY.—In awarding grants 

14 under subsection (a), the Secretary of the Interior shall 

15 give priority to projects the Secretary determines are likely 

16 to be economically viable over the long term. 

17 (d) SECONDARY RECOVERY.—In awarding grants 

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

19 of the Interior shall seek to award not less than 30 percent 

20 of the total amount of grants awarded during that fiscal 

21 year for projects relating to secondary recovery of critical 

22 minerals and metals. 

23 (e) AUTHORIZATION OF APPROPRIATIONS.—There 

24 are authorized to be appropriated to the Secretary of the 


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1 Interior $50,000,000 for each of fiscal years 2021 through 

2 2024 to carry out the grant program established under 

3 subsection (a). 

4 (f) DEFINITIONS.—In this section: 

5 (1) CRITICAL MINERALS AND METALS.—The 

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

7 cobalt, dysprosium, erbium, europium, gadolinium, 

8 graphite, holmium, lanthanum, lithium, lutetium, 

9 manganese, neodymium, praseodymium, pro10 methium, samarium, scandium, terbium, thulium, 

11 ytterbium, and yttrium. 

12 (2) SECONDARY RECOVERY.—The term ‘‘sec13 ondary recovery’’ means the recovery of minerals 

14 and metals from discarded end-use products or from 

15 waste products produced during the metal refining 

16 and manufacturing process, including from mine 

17 waste piles, acid mine drainage sludge, or byprod18 ucts produced through legacy mining and metallurgy 

19 activities. 

Æ 


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