Representatives Adrian Smith (R-NE), Jimmy Panetta (D-CA), and Guy Reschenthaler (R-PA) have introduced the Critical Minerals Investment Tax Modernization Act, a bipartisan bill aimed at expanding tax relief to support the production of critical minerals important for national and economic security.
“Embracing our nation’s full capacity to produce critical minerals at home is essential to growing our economy, strengthening supply chains for key industries, and keeping our homeland secure,” said Rep. Smith. “This bill will modernize existing tax deductions to boost domestic production and ensure the United States can meet the growing need for these valuable elements. I thank Reps. Panetta and Reschenthaler for working with me on this legislation.”
Rep. Panetta added, “Right now, our tax code doesn’t reflect the growing need for critical minerals that support our national security and clean energy future. Our bipartisan Critical Minerals Investment Tax Modernization Act would update outdated IRS rules to prioritize all U.S.-designated critical minerals. This commonsense step will help boost domestic production, reduce our reliance on foreign adversaries, and strengthen our supply chains.”
Rep. Reschenthaler stated, “U.S dependence on China for critical minerals is unsustainable and a threat to our national security. Updating our critical minerals list is a necessary action to remove a bureaucratic hurdle and meet the growing needs of our nation, including for critical technologies. As the co-chairman of the Critical Materials Caucus, I am proud to introduce this bipartisan legislation with my colleagues and thank Rep. Adrian Smith for his leadership on this important issue.”
The current tax code allows producers of certain minerals to recover part of their gross income through what is known as a depletion allowance—22 percent for top-priority minerals and 14 percent for others. The proposed legislation would move rare earths and scandium into the higher 22 percent category.
Adrian Smith has represented Nebraska’s 3rd district in Congress since 2007 after serving in the Nebraska Legislature from 1999 to 2007. He was born in Scottsbluff, Nebraska in 1970, lives in Gering, and graduated from the University of Nebraska–Lincoln in 1993.
