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 non- 
allied 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 non- 
allied foreign nations, and for other purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
VerDate Sep 11 2014 
22:38 Aug 15, 2020
Jkt 099200
PO 00000
Frm 00001
Fmt 6652
Sfmt 6201
E:\BILLS\H7812.IH
H7812
pamtmann on DSKBC07HB2PROD with BILLS
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Onshoring Rare 
Earths Act of 2020’’ or the ‘‘ORE Act’’. 
SEC. 2. PERMANENT FULL EXPENSING FOR PROPERTY 
USED TO EXTRACT CRITICAL MINERALS AND 
METALS WITHIN THE UNITED STATES. 
(a) IN GENERAL.—Section 168(k) of the Internal 
Revenue Code of 1986 is amended by adding at the end 
the following: 
‘‘(11) SPECIAL RULE FOR PROPERTY USED IN 
THE EXTRACTION OF CRITICAL MINERALS AND MET-
ALS WITHIN THE UNITED STATES.— 
‘‘(A) IN
GENERAL.—In the case of any 
qualified property which is directly involved in 
extracting critical minerals and metals from de-
posits in the United States— 
‘‘(i) paragraph (2)(A)(iii) shall not 
apply, and 
‘‘(ii) the applicable percentage shall be 
100 percent. 
‘‘(B) CRITICAL MINERALS AND METALS.— 
For purposes of this paragraph, the term ‘crit-
ical minerals and metals’ means cerium, cobalt, 
dysprosium, erbium, europium, gadolinium, 
graphite, holmium, lanthanum, lithium, lute-
tium, manganese, neodymium, praseodymium, 
VerDate Sep 11 2014 
22:38 Aug 15, 2020
Jkt 099200
PO 00000
Frm 00002
Fmt 6652
Sfmt 6201
E:\BILLS\H7812.IH
H7812
pamtmann on DSKBC07HB2PROD with BILLS
‘‘(ii) if such property was placed in service 
before the date of enactment of this subsection, 
the depreciation deduction provided by section 
167(a) for the first taxable year beginning after 
such date shall include an allowance equal to 
100 percent of the adjusted basis of such prop-
erty, and 
‘‘(B) the adjusted basis of such property 
shall be reduced by the amount of such deduc-
tion before computing the amount otherwise al-
lowable as a depreciation deduction under this 
chapter for such taxable year and any subse-
quent taxable year. 
‘‘(2) QUALIFIED
REAL
PROPERTY.—For pur-
poses of this subsection, the term ‘qualified real 
property’ means any nonresidential real property 
which is directly involved in extracting critical min-
erals 
and 
metals 
(as 
defined 
in 
subsection 
(k)(11)(B)) from deposits in the United States.’’. 
(b) EFFECTIVE DATE.—The amendment made by 
this section shall apply to taxable years beginning after 
December 31, 2019. 
VerDate Sep 11 2014 
22:38 Aug 15, 2020
Jkt 099200
PO 00000
Frm 00004
Fmt 6652
Sfmt 6201
E:\BILLS\H7812.IH
H7812
pamtmann on DSKBC07HB2PROD with BILLS
SEC. 4. DEDUCTION FOR PURCHASE OF CRITICAL MIN-
ERALS AND METALS EXTRACTED WITHIN THE 
UNITED STATES. 
(a) IN GENERAL.—Part VI of subchapter B of chap-
ter 1 of the Internal Revenue Code of 1986 is amended 
by inserting after section 176 the following new section: 
‘‘SEC. 177. DEDUCTION FOR PURCHASE OF CRITICAL MIN-
ERALS AND METALS EXTRACTED WITHIN THE 
UNITED STATES. 
‘‘(a) ALLOWANCE OF DEDUCTION.—There shall be 
allowed as a deduction for the taxable year an amount 
equal to 200 percent of the cost paid or incurred by the 
taxpayer for the purchase or acquisition of critical min-
erals and metals (as defined in section 168(k)(11)(B)) 
which have been extracted from deposits in the United 
States. 
‘‘(b) APPLICATION WITH OTHER DEDUCTIONS.—No 
deduction shall be allowed under any other provision of 
this chapter with respect to any expenditure with respect 
to which a deduction is allowed or allowable under this 
section to the taxpayer.’’. 
(b) CONFORMING AMENDMENT.—The table of sec-
tions for part VI of subchapter B of chapter 1 of the Inter-
nal Revenue Code of 1986 is amended by inserting after 
the item relating to section 176 the following new item: 
VerDate Sep 11 2014 
22:38 Aug 15, 2020
Jkt 099200
PO 00000
Frm 00005
Fmt 6652
Sfmt 6201
E:\BILLS\H7812.IH
H7812
pamtmann on DSKBC07HB2PROD with BILLS
‘‘Sec. 177. Deduction for purchase of critical minerals and metals extracted 
within the United States.’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to amounts paid or incurred after 
December 31, 2019. 
SEC. 5. MODIFICATION OF PROHIBITION ON ACQUISITION 
OF CERTAIN SENSITIVE MATERIALS. 
(a) EXTENSION OF PROHIBITION TO MINED, RE-
FINED, AND SEPARATED MATERIALS.—Subsection (a)(1) 
of section 2533c of title 10, United States Code, is amend-
ed by striking ‘‘melted or produced’’ and inserting ‘‘mined, 
refined, separated, melted, or produced’’. 
(b) COMMERCIALLY
AVAILABLE
OFF-THE-SHELF 
ITEM EXCEPTION.—Subsection (c)(3)(A)(i) of such sec-
tion is amended by striking ‘‘50 percent or more tung-
sten’’ and inserting ‘‘50 percent or more covered mate-
rial’’. 
SEC. 6. GRANT PROGRAM FOR DEVELOPMENT OF CRITICAL 
MINERALS AND METALS. 
(a) ESTABLISHMENT.—The Secretary of Defense, in 
consultation with the Secretary of the Interior, shall estab-
lish a grant program to finance pilot projects for the devel-
opment of critical minerals and metals in the United 
States. 
VerDate Sep 11 2014 
22:38 Aug 15, 2020
Jkt 099200
PO 00000
Frm 00006
Fmt 6652
Sfmt 6201
E:\BILLS\H7812.IH
H7812
pamtmann on DSKBC07HB2PROD with BILLS
(b) LIMITATION
ON
GRANT
AWARDS.—A grant 
awarded 
under 
subsection 
(a) 
may 
not 
exceed 
$10,000,000. 
(c) ECONOMIC
VIABILITY.—In awarding grants 
under subsection (a), the Secretary of Defense shall give 
priority to projects the Secretary determines are likely to 
be economically viable over the long term. 
(d) SECONDARY RECOVERY.—In awarding grants 
under subsection (a) during a fiscal year, the Secretary 
of Defense shall seek to award not less than 30 percent 
of the total amount of grants awarded during that fiscal 
year for projects relating to secondary recovery of critical 
minerals and metals. 
(e) AUTHORIZATION
OF APPROPRIATIONS.—There 
are authorized to be appropriated to the Secretary of De-
fense $50,000,000 for each of fiscal years 2021 through 
2024 to carry out the grant program established under 
subsection (a). 
(f) DEFINITIONS.—In this section: 
(1) CRITICAL
MINERALS
AND
METALS.—The 
term ‘‘critical minerals and metals’’ means cerium, 
cobalt, dysprosium, erbium, europium, gadolinium, 
graphite, holmium, lanthanum, lithium, lutetium, 
manganese, 
neodymium, 
praseodymium, 
pro-
VerDate Sep 11 2014 
22:38 Aug 15, 2020
Jkt 099200
PO 00000
Frm 00007
Fmt 6652
Sfmt 6201
E:\BILLS\H7812.IH
H7812
pamtmann on DSKBC07HB2PROD with BILLS
methium, samarium, scandium, terbium, thulium, 
ytterbium, and yttrium. 
(2) SECONDARY
RECOVERY.—The term ‘‘sec-
ondary recovery’’ means the recovery of minerals 
and metals from discarded end-use products or from 
waste products produced during the metal refining 
and manufacturing process, including from mine 
waste piles, acid mine drainage sludge, or byprod-
ucts produced through legacy mining and metallurgy 
activities. 
Æ 
VerDate Sep 11 2014 
22:38 Aug 15, 2020
Jkt 099200
PO 00000
Frm 00008
Fmt 6652
Sfmt 6301
E:\BILLS\H7812.IH
H7812
pamtmann on DSKBC07HB2PROD with BILLS