Securing America’s Critical Minerals Supply Chain Act

I 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 Representa- 1 tives of the United States of America in Congress assembled, 2 SECTION 1. SHORT TITLE. 3 This Act may be cited as the ‘‘Securing America’s 4 Critical Minerals Supply Chain Act’’. 5 SEC. 2. FINDINGS. 6 Congress finds the following: 7 VerDate Sep 11 2014 02:20 May 01, 2020 Jkt 099200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H6630.IH H6630 pbinns on DSKJLVW7X2PROD with BILLS 2 •HR 6630 IH (1) It is in America’s best interest to ensure a 1 robust and secure domestic supply chain for U.S. 2 manufacturers. 3 (2) The United States increasing reliance on 4 foreign sources of metals and minerals threatens our 5 economic and national security while providing our 6 geopolitical rivals, such as China and Russia, lever- 7 age over our economy. 8 (3) Incentivizing domestic mineral and metal 9 production and the purchase of these materials will 10 make our nation’s supply chains more secure and re- 11 silient. 12 SEC. 3. ADDITIONAL DEDUCTION FOR COST OF CERTAIN 13 MATERIALS PURCHASED DIRECTLY FROM A 14 DOMESTIC SMELTER OR PROCESSOR. 15 (a) IN GENERAL.—Part VI of subchapter B of chap- 16 ter 1 of the Internal Revenue Code of 1986 is amended 17 by inserting after section 181 the following new section: 18 ‘‘SEC. 182. ADDITIONAL DEDUCTION FOR COST OF CERTAIN 19 MATERIALS PURCHASED DIRECTLY FROM A 20 DOMESTIC SMELTER OR PROCESSOR. 21 ‘‘(a) IN GENERAL.—There shall be allowed as a de- 22 duction (in addition to any other deduction allowed under 23 this chapter for the cost of specified domestically-produced 24 materials) an amount equal to 10 percent of the cost of 25 VerDate Sep 11 2014 02:20 May 01, 2020 Jkt 099200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H6630.IH H6630 pbinns on DSKJLVW7X2PROD with BILLS 3 •HR 6630 IH specified domestically-produced materials if such materials 1 are acquired by the taxpayer directly from the domestic 2 smelter or processor of such material. 3 ‘‘(b) SPECIFIED DOMESTICALLY-PRODUCED MATE- 4 RIALS.—For purposes of this section— 5 ‘‘(1) IN GENERAL.—The term ‘specified domes- 6 tically-produced materials’ means any specified ma- 7 terial if such material is smelted or processed in the 8 United States by direct smelting of ore, from a mine 9 product, such as that extracted from mined ore; 10 from beneficiation; from reprocessing mine tailings; 11 or from reprocessing smelter or refinery slags or res- 12 idues, by a taxpayer in the trade or business of 13 smelting or processing such material. 14 ‘‘(2) SPECIFIED MATERIAL.— 15 ‘‘(A) IN GENERAL.—The term ‘specified 16 material’ means minerals that are necessary— 17 ‘‘(i) for the national defense and na- 18 tional security requirements; 19 ‘‘(ii) for the energy infrastructure of 20 the United States, including— 21 ‘‘(I) pipelines; 22 ‘‘(II) refining capacity; 23 ‘‘(III) electrical power generation 24 and transmission; and 25 VerDate Sep 11 2014 02:20 May 01, 2020 Jkt 099200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H6630.IH H6630 pbinns on DSKJLVW7X2PROD with BILLS 4 •HR 6630 IH ‘‘(IV) renewable energy produc- 1 tion; 2 ‘‘(iii) for community resiliency, coastal 3 restoration, and ecological sustainability 4 for the coastal United States; 5 ‘‘(iv) to support domestic manufac- 6 turing, agriculture, housing, telecommuni- 7 cations, healthcare, and transportation in- 8 frastructure; or 9 ‘‘(v) for the economic security of, and 10 balance of trade in, the United States. 11 ‘‘(B) EXCEPTIONS.—Such term shall not 12 include— 13 ‘‘(i) fuel minerals, including oil, nat- 14 ural gas, or any other fossil fuels; 15 ‘‘(ii) water, ice, or snow; or 16 ‘‘(iii) sand, stone, gravel, pumice, 17 pumicite, cinders, or clay. 18 ‘‘(c) DOMESTIC SMELTER OR PROCESSOR.—For pur- 19 poses of this section, the term ‘domestic smelter or proc- 20 essor’ means, with respect to any specified material, the 21 taxpayer described in subsection (b)(1) with respect to 22 such material.’’. 23 (b) CLERICAL AMENDMENT.—The table of sections 24 for part VI of subchapter B of chapter 1 of such Code 25 VerDate Sep 11 2014 02:20 May 01, 2020 Jkt 099200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\H6630.IH H6630 pbinns on DSKJLVW7X2PROD with BILLS 5 •HR 6630 IH is amended by inserting after the item relating to section 1 181 the following new item: 2 ‘‘Sec. 182. Additional deduction for cost of certain materials purchased directly from a domestic smelter or processor.’’. (c) EFFECTIVE DATE.—The amendments made by 3 this section shall apply to taxable years beginning after 4 the date of the enactment of this Act. 5 Æ VerDate Sep 11 2014 02:20 May 01, 2020 Jkt 099200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6301 E:\BILLS\H6630.IH H6630 pbinns on DSKJLVW7X2PROD with BILLS