Critical Mineral and Extraction Tax Parity Act
- Bill Number
- H.R. 8780
- Origin Chamber
- House
- Congress
- 119th Congress, Session 2
- Policy Area
- Taxation
- Status
- Introduced
- Latest Action
- 2026-05-13: Referred to the House Committee on Ways and Means.
- Last Updated
- 2026-06-30T08:06:41Z
AI-Generated Summary
Purpose This legislation amends the Internal Revenue Code of 1986 to expand the advanced manufacturing production tax credit under Section 45X. It aims to include additional critical minerals, incorporate certain extraction costs, and adjust credit amounts for specific materials.
Key Provisions
- Expanded list of eligible minerals: Adds boron, copper, lead, metallurgical coal, potash, rhenium, silicon, silver, and uranium to the definition of applicable critical minerals. It also includes phosphate that meets specific purity standards for conversion into phosphoric acid or phosphorus.
- Treatment of extraction costs: Permits taxpayers who extract ore in the United States (or in limited foreign cases where the ore is not commercially available domestically and is not from a foreign country of concern) to count those costs toward the credit, provided a refiner certifies that the ore was refined into an applicable critical mineral and sold to an unrelated party. Regulations are required to prevent double-counting of costs.
- Removal of credit reduction: Eliminates the reduced credit rate (previously 2.5 percent) that applied specifically to metallurgical coal.
These changes apply to minerals produced and sold, or amounts paid or incurred, after December 31, 2025.
Significant Changes to Existing Law The bill broadens the scope of Section 45X by increasing the number of qualifying minerals and allowing upstream extraction expenses to qualify under certain conditions. It also standardizes the credit rate for metallurgical coal by repealing its prior reduction.
Potential Impacts
- Government agencies: The Internal Revenue Service and Department of the Treasury would administer expanded eligibility and certification requirements, potentially increasing administrative workload.
- Citizens and businesses: Domestic mining and refining operations may receive additional tax incentives, while foreign ore from countries of concern is excluded.
- International relations: Restrictions on ore from designated foreign countries of concern could influence supply chain decisions and trade patterns for critical minerals.
Main Stakeholders Affected
- Mining and extraction companies operating in the United States.
- Mineral refiners and manufacturers using critical minerals.
- Taxpayers claiming the Section 45X credit.
- Federal agencies responsible for tax administration and oversight of critical minerals.
Notable Legal, Constitutional, or Political Implications The bill modifies tax incentives to promote domestic production of critical minerals, with explicit limits on foreign sources tied to national security definitions. No direct constitutional issues are raised in the text; it remains within Congress's taxing authority.
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Cosponsors (16)
Rep. Buchanan, Vern [R-FL-16], Rep. Carey, Mike [R-OH-15], Rep. Miller, Max L. [R-OH-7], Rep. Bean, Aaron [R-FL-4], Rep. Hurd, Jeff [R-CO-3], Rep. McCormick, Richard [R-GA-7], Rep. Owens, Burgess [R-UT-4], Rep. Fleischmann, Charles J. "Chuck" [R-TN-3], Rep. Barr, Andy [R-KY-6], Rep. Alford, Mark [R-MO-4], Rep. Moore, Barry [R-AL-1], Rep. Gosar, Paul A. [R-AZ-9], Rep. Miller, Carol D. [R-WV-1], Rep. Mann, Tracey [R-KS-1], Rep. Steube, W. Gregory [R-FL-17], Rep. Bergman, Jack [R-MI-1]
Recent Actions
- 2026-05-13: Referred to the House Committee on Ways and Means.
- 2026-05-13: Introduced in House
- 2026-05-13: Introduced in House
Bill Versions
- Critical Mineral and Extraction Tax Parity Act — issued 2026-05-13 — PDF (5 pages)