Critical Mineral and Extraction Tax Parity Act

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 8780 Introduced in House (IH)]

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119th CONGRESS
  2d Session
                                H. R. 8780

 To amend the Internal Revenue Code of 1986 to expand and improve the
             advanced manufacturing production tax credit.

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                              May 13, 2026

Mr. Moore of Utah (for himself, Mr. Buchanan, Mr. Carey, Mr. Miller of
Ohio, and Mr. Bean of Florida) 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 expand and improve the
             advanced manufacturing production tax credit.

    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 ``Critical Mineral and Extraction Tax
Parity Act''.

SEC. 2. EXPANSION AND IMPROVEMENT OF ADVANCE MANUFACTURING PRODUCTION
              TAX CREDIT.

    (a) Inclusion of Additional Critical Minerals.--
            (1) In general.--Section 45X(c)(6) of the Internal Revenue
        Code of 1986 is amended--
                    (A) in subparagraph (AA), by inserting after clause
                (xxv) the following new clauses:
                            ``(xxvi) Boron.
                            ``(xxvii) Copper.
                            ``(xxviii) Lead.
                            ``(xxix) Metallurgical coal.
                            ``(xxx) Potash.
                            ``(xxxi) Rhenium.
                            ``(xxxii) Silicon.
                            ``(xxxiii) Silver.
                            ``(xxxiv) Uranium.'', and
                    (B) by adding at the end the following new
                subparagraph:
                    ``(BB) Phosphate.--Phosphate which is--
                            ``(i) converted to--
                                    ``(I) phosphoric acid, or
                                    ``(II) phosphorus with a minimum
                                purity of 99 percent phosphorus by
                                mass, or
                            ``(ii) phosphate rock purified to a minimum
                        purity of 20 percent phosphorus pentoxide by
                        mass suitable for use in the production of
                        phosphoric acid.''.
            (2) Effective date.--The amendments made by this subsection
        shall apply to minerals produced and sold after December 31,
        2025.
    (b) Inclusion of Ore Extraction Costs in Advanced Manufacturing
Production Credit.--
            (1) In general.--Section 45X(d) of the Internal Revenue
        Code of 1986 is amended--
                    (A) by redesignating the paragraph (4) relating to
                restrictions relating to prohibited foreign entities as
                paragraph (5), and
                    (B) by adding at the end the following new
                paragraph:
            ``(6) Extraction costs for critical minerals.--
                    ``(A) In general.--In the case of a taxpayer that
                extracts ore that is subsequently refined into an
                applicable critical mineral, costs incurred by the
                taxpayer with respect to such extraction shall be
                treated as costs described in subsection (b)(1)(M) for
                purposes of this section if such taxpayer submits to
                the Secretary a certification from the refiner of such
                ore that--
                            ``(i) such ore has been refined into an
                        applicable critical mineral, and
                            ``(ii) such refiner sold the applicable
                        critical mineral to an unrelated person (as
                        defined in subsection (a)(3)) and such sale
                        occurred in a trade or business of the refiner.
                    ``(B) Certain foreign ore not eligible.--The cost
                of extracting ore shall be taken into account under
                subparagraph (A) only if--
                            ``(i) such ore was extracted in the United
                        States, or
                            ``(ii) in the case of ore extracted outside
                        of the United States--
                                    ``(I) the ore is of a type not
                                extracted in the United States in
                                commercial quantities, and
                                    ``(II) the ore was not extracted in
                                a foreign country of concern (as
                                defined in section 10612(a)(1) of the
                                Research and Development, Competition,
                                and Innovation Act (42 U.S.C.
                                19221(a)(1))).
                    ``(C) Regulations preventing double benefit.--The
                Secretary shall issue such regulations or guidance as
                may be necessary or appropriate to ensure that no costs
                which are treated as costs described in subsection
                (b)(1)(M) by reason of subparagraph (A) are included,
                directly or indirectly, in the costs of production of
                any applicable critical mineral by any taxpayer except
                as provided by such subparagraph.''.
            (2) Effective date.--The amendments made by this subsection
        shall apply to amounts paid or incurred after December 31,
        2025.
    (c) Repeal of Reduction in Credit Amount for Metallurgical Coal.--
            (1) In general.--Section 45X(b)(1)(M) of the Internal
        Revenue Code of 1986 is amended by striking ``(2.5 percent in
        the case of metallurgical coal)''.
            (2) Effective date.--The amendment made by this subsection
        shall apply to minerals produced and sold after December 31,
        2025.
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