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)]
<DOC>
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.
<all>
Introduced in House
Introduced in House
Referred to the House Committee on Ways and Means.
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