Manufacturing America’s Mineral Security Act
Bill: H.R.4932 | Sponsor: Rep. Stauber, Pete (R-MN)
Policy area: Taxation

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.

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.

    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 ``Manufacturing America's Mineral 
Security Act''.

SEC. 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.

SEC. 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 of the 
Internal Revenue Code of 1986 is amended by inserting after section 181 
the following new section:

``SEC. 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' means any specified material if such 
        material is--
                    ``(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' 
                means minerals that are necessary--
                            ``(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' shall include all Materials 
                of Interest listed by the Defense Logistics Agency.
                    ``(C) Exceptions.--The term `specified material' 
                shall not include--
                            ``(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' means, with respect to any 
specified material, the person performing the activity described in 
subsection (b)(1) with respect to such material.''.
    (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.
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