Manufacturing America’s Mineral Security Act

To amend the Internal Revenue Code of 1986 to provide an additional deduction for the cost of certain materials purchased directly from a domestic smelter or processor. 1. Short title This Act may be cited as the Manufacturing America’s Mineral Security Act 2. Findings Congress finds the following: (1) It is in America’s best interest to ensure a robust and secure domestic supply chain for U.S. manufacturers. (2) The United States increasing reliance on foreign sources of metals and minerals threatens our economic and national security while providing our geopolitical rivals, such as China and Russia, leverage over our economy. (3) Incentivizing domestic mineral and metal production and the purchase of these materials will make our Nation’s supply chains more secure and resilient. 3. Additional deduction for cost of certain materials purchased directly from a domestic smelter or processor (a) In general Part VI of subchapter B of chapter 1 182. Additional deduction for cost of certain materials purchased directly from a domestic smelter or processor (a) In general There shall be allowed as a deduction (in addition to any other deduction allowed under this chapter for the cost of specified domestically produced materials) an amount equal to 10 percent of the cost of specified domestically produced materials if such materials are acquired by the taxpayer directly from the domestic smelter or processor of such material. (b) Specified domestically Produced materials For purposes of this section— (1) In general The term specified domestically-produced materials (A) in the case of a mine product, smelted or processed in the United States by direct smelting of ore; (B) in the case of a mine tailings product, beneficiated in the United States; (C) in the case of metal or metal compound production— (i) reprocessed from slags or residues in the United States; or (ii) melted, sputtered, or otherwise produced in the United States; (D) in the case of alloy production, produced by melting together metals in the United States to form an alloy; and (E) in the case of magnet production, sintered or bonded and magnetized in the United States. (2) Specified material (A) In general The term specified material (i) for the energy infrastructure of the United States, including— (I) pipelines; (II) refining capacity; (III) electrical power generation and transmission; and (IV) renewable energy production; (ii) for community resiliency, coastal restoration, and ecological sustainability for the coastal United States; (iii) to support domestic manufacturing, agriculture, housing, telecommunications, healthcare, and transportation infrastructure; or (iv) for the economic security of, and balance of trade in, the United States. (B) Materials needed for national defense The term specified material (C) Exceptions The term specified material (i) fuel minerals, including oil, natural gas, or any other fossil fuels; (ii) water, ice, or snow; or (iii) sand, stone, gravel, pumice, pumicite, cinders, or clay. (c) Domestic smelter or processor For purposes of this section, the term domestic smelter or processor . (b) Clerical amendment The table of sections for part VI of subchapter B of chapter 1 of such Code is amended by inserting after the item relating to section 181 the following new item: Sec. 182. Additional deduction for cost of certain materials purchased directly from a domestic smelter or processor. . (c) Effective date The amendments made by this section shall apply to taxable years beginning after the date of the enactment of this Act.

Summary: Manufacturing America's Mineral Security Act This bill allows an additional 10% tax deduction for the cost of specified domestically produced materials if such materials are acquired by the taxpayer directly from the domestic smelter or processor of such material. The bill defines specified domestically produced materials to include mine products, metal or metal compound production, and alloy and magnet production. Specified material are minerals that are necessary for the energy infrastructure of the United States, for community resiliency, to support domestic manufacturing, agriculture, housing, telecommunications, health care, and transportation infrastructure, or for the economic security of, and balance of trade in, the United States.