Title: Securing America’s Critical Minerals Supply Chain Act
Policy area: Taxation

Summary:
Securing America's Critical Minerals Supply Chain Act
This bill allows a new tax deduction for 10% of the cost of specified domestically-produced materials if such materials are acquired directly from the domestic smelter or processor of the materials. The bill defines specified domestically-produced materials as materials that are smelted or processed in the United States by direct smelting of ore, from a mine product, by a taxpayer in the trade or business of smelting or processing such materials.
The term specified material includes minerals necessary for national defense and security, for U.S. energy infrastructure, for community resiliency, to support domestic manufacturing, agriculture, housing, telecommunications, healthcare, and transportation infrastructure, or for U.S. economic security and balance of trade. The term does not include fuel minerals, water, ice, or snow, or sand, stone, gravel, pumice, pumicite, cinders, or clay.

[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[H.R. 6630 Introduced in House (IH)]

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116th CONGRESS
  2d Session
                                H. R. 6630

  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.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             April 28, 2020

  Mr. Stauber (for himself, Mr. Gosar, and Mr. Young) introduced the 
 following bill; which was referred to the Committee on Ways and Means

_______________________________________________________________________

                                 A BILL


 
  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 ``Securing America's Critical Minerals 
Supply Chain 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 smelted or processed in the United States by direct 
        smelting of ore, from a mine product, such as that extracted 
        from mined ore; from beneficiation; from reprocessing mine 
        tailings; or from reprocessing smelter or refinery slags or 
        residues, by a taxpayer in the trade or business of smelting or 
        processing such material.
            ``(2) Specified material.--
                    ``(A) In general.--The term `specified material' 
                means minerals that are necessary--
                            ``(i) for the national defense and national 
                        security requirements;
                            ``(ii) 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;
                            ``(iii) for community resiliency, coastal 
                        restoration, and ecological sustainability for 
                        the coastal United States;
                            ``(iv) to support domestic manufacturing, 
                        agriculture, housing, telecommunications, 
                        healthcare, and transportation infrastructure; 
                        or
                            ``(v) for the economic security of, and 
                        balance of trade in, the United States.
                    ``(B) Exceptions.--Such term 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 taxpayer 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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