Rare Earth Magnet Security Act of 2025
Sponsored By: Representative Reschenthaler
Introduced
Summary
A tax credit for domestic production of high‑performance rare earth magnets. This bill would create a new, nonrefundable business credit that rewards U.S. manufacture of specific permanent magnets made from defined rare‑earth alloys.
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Bill Overview
Analyzed Economic Effects
1 provisions identified: 1 benefits, 0 costs, 0 mixed.
Tax credit for U.S. magnet makers
If enacted, this bill would create a new tax credit for U.S. makers of high‑performance rare‑earth magnets. You would get $20 per kilogram of magnets made and sold, or $30 per kilogram if at least 90% of the materials by weight were made in the United States. The magnet must be made in the U.S., in your trade or business, and sold to an unrelated buyer (some related sales could qualify by election). No credit would apply if any component comes from a non‑allied foreign nation, except for dysprosium, terbium, samarium, or gadolinium used in magnets made before January 1, 2027. Magnets must meet a coercivity test (10 kOe), though DOE or DOD‑supported makers could get an exception. The credit would phase down for magnets made after 2034: 70% in 2035; 35% in 2036–2037; 0% after 2037. You could elect to treat some or all of the credit as a payment against your tax. These rules would apply to tax years starting after December 31, 2024.
Sponsors & CoSponsors
Sponsor
Reschenthaler
PA • R
Cosponsors
Swalwell
CA • D
Sponsored 2/21/2025
Hudson
NC • R
Sponsored 2/21/2025
Rep. Lee, Susie [D-NV-3]
NV • D
Sponsored 2/21/2025
Rep. Calvert, Ken [R-CA-41]
CA • R
Sponsored 2/21/2025
Rep. Castor, Kathy [D-FL-14]
FL • D
Sponsored 2/21/2025
Obernolte
CA • R
Sponsored 2/21/2025
Rep. Tonko, Paul [D-NY-20]
NY • D
Sponsored 2/21/2025
Rep. Moolenaar, John R. [R-MI-2]
MI • R
Sponsored 2/21/2025
Rep. Deluzio, Christopher R. [D-PA-17]
PA • D
Sponsored 2/21/2025
Rep. Meuser, Daniel [R-PA-9]
PA • R
Sponsored 2/21/2025
Rep. Panetta, Jimmy [D-CA-19]
CA • D
Sponsored 2/21/2025
Mills
FL • R
Sponsored 2/21/2025
Rep. Houlahan, Chrissy [D-PA-6]
PA • D
Sponsored 2/21/2025
Rep. Krishnamoorthi, Raja [D-IL-8]
IL • D
Sponsored 2/25/2025
Rep. Valadao, David G. [R-CA-22]
CA • R
Sponsored 2/25/2025
Rep. Veasey, Marc A. [D-TX-33]
TX • D
Sponsored 2/25/2025
Rep. Finstad, Brad [R-MN-1]
MN • R
Sponsored 3/10/2025
Craig
MN • D
Sponsored 3/11/2025
Rep. Morrison, Kelly [D-MN-3]
MN • D
Sponsored 5/14/2025
McCollum
MN • D
Sponsored 5/19/2025
Rep. Garamendi, John [D-CA-8]
CA • D
Sponsored 6/12/2025
Stauber
MN • R
Sponsored 6/23/2025
Rep. Davids, Sharice [D-KS-3]
KS • D
Sponsored 7/22/2025
Rep. Fleischmann, Charles J. "Chuck" [R-TN-3]
TN • R
Sponsored 11/7/2025
Rep. Gottheimer, Josh [D-NJ-5]
NJ • D
Sponsored 11/17/2025
Rep. Horsford, Steven [D-NV-4]
NV • D
Sponsored 12/11/2025
Carson
IN • D
Sponsored 1/15/2026
Fedorchak
ND • R
Sponsored 4/21/2026
Jackson (IL)
IL • D
Sponsored 4/21/2026
Roll Call Votes
No roll call votes available for this bill.
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