HR 4350
Unearth America’s Future Act
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Bill overview
The Unearth America’s Future Act aims to strengthen the United States’ supply chain for critical materials by establishing a loan program, providing tax credits, and supporting research and development. It seeks to create a national center to study and advise on supply chain security, promote innovation, and ensure workforce development. The bill also establishes a public-private partnership and incorporates labor-management cooperation standards.
Key provisions
- Establishes a loan program to support domestic and foreign manufacturing capabilities for critical materials.
- Provides investment tax credits and production tax credits for qualified investments in critical material facilities.
- Creates a National Center for Secure and Transparent Critical Material Supply Chains to advise on policy and best practices.
- Supports research and development in critical materials, including mining and industrial decarbonization.
- Establishes a public-private partnership to foster collaboration and investment in the critical materials supply chain.
- Includes labor-management cooperation provisions to ensure fair labor practices.
- Requires adherence to Davis-Bacon wage rates for workers on projects funded by the bill.
- Authorizes appropriations for the program's activities.
Who is affected
- Manufacturers of critical materials
- Investors in critical material facilities
- Federal agencies and departments
Sponsors
Official sponsors from legislative records.
Primary sponsor
Cosponsors
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119th CONGRESS — 1st Session
H. R. 4350
IN THE HOUSE OF REPRESENTATIVES
A BILL
To establish a loan program to expand capabilities to manufacture critical materials to secure the United States supply chain, to amend the Internal Revenue Code of 1986 to provide credits for qualified investments into critical material facilities and production credits for manufacturing critical materials, and to authorize cross-cutting research, development, and demonstration activities relating to critical material supply chains, and for other purposes.
.Unearth America’s Future Act
It is the sense of Congress that the Secretary of Commerce, in consultation with the Secretary of State, should carry out the actions and collaborations authorized by this title in a manner that—
prioritizing expanded domestic capabilities; and
expanding foreign capabilities to support such expanded domestic capabilities;
supports industrial decarbonization throughout the supply chain;
defends worker rights through strong workplace protections, including through neutrality agreements, and removes human rights violations across the supply chain;
supports community engagement and consultation to prevent disenfranchisement and other environmental injustices from occurring; and
grows the economic strength and bolsters the leadership of the manufacturing sector of the United States, including its workforce.
Center) in the Department of Commerce to support the security and resilience of the critical material supply chain by advancing policy recommendations, best practices, and other activities to create a critical material supply chain with the following characteristics:
Security and resiliency against supply chain disruptions.
Environmental sustainability.
Workforce security and safety.
Innovativeness.
The functions of the Center shall be as follows:
market dynamics;
disseminating information on relevant best practices; and
providing technical assistance and other resources, as determined by the head of the Center as appropriate and not duplicative of other technical assistance and resources provided by the Federal Government, to such industry to support the adoption of—
environmental protection practices, including the use of emerging technologies, to prevent environmental degradation within extraction processes;
industrial decarbonization practices;
practices that improve the ability of critical materials to be recycled and reused to support circular economies (as defined in section 2 of the Save Our Seas 2.0 Act (33 U.S.C. 4201)).
To strengthen the innovation ecosystem related to the critical material supply chain industry.
The head of the Center shall make publicly available on a website of the Center each report created by the Center pursuant to paragraph (1) or (2) of subsection (b).
A covered entity shall be eligible for a loan made or guaranteed under this section if the covered entity meets each of the following criteria:
the customers or categories of customers, to which the covered entity plans to sell the critical materials so produced;
The covered entity—
can operate the facility on an ongoing basis, in accordance with subparagraphs (A), (B), and (C) of paragraph (2), without depending on additional Federal assistance;
can reasonably repay such loan; and
meets such other standards for financial health as determined appropriate by the Secretary.
The covered entity—
is not owned, controlled, or operated by a foreign entity of concern;
is not otherwise in a partnership or association with a foreign entity of concern; and
In determining whether to make or guarantee a loan to a covered entity under this section with respect to a facility described in subsection (b)(1), the Secretary shall consider—
whether the covered entity has an executable plan with respect to such facility to carry out—
development of the local workforce by creating and expanding educational and workforce pathways, including pathways developed through engagement with relevant local entities in the community in which such facility is or will be located; and
the covered entity will not use forced or child labor or use other practices that create unduly dangerous workplace conditions that are not consistent with the laws of the United States;
In making or guaranteeing loans under this section, the Secretary shall prioritize loans with respect to facilities that—
expand the domestic supply of critical materials that the Secretary determines necessary to the—
the national security and defense of the United States;
the energy security and independence of the United States; and
the economic competitiveness of the United States;
have not been supported by prior direct investment (excluding research, development, or demonstration support) by the Department of Defense, the Department of Energy, or any other Federal department or agency, unless the Secretary determines that making or guaranteeing such loan is in the best interest of carrying out the purposes described in paragraph (1), including a loan to a covered entity with respect to a facility or activity to expand the domestic supply of such critical minerals that was supported by a prior Federal award; and
Not later than 15 days before making or guaranteeing a loan under this section that exceeds $100,000,000, the Secretary shall notify the appropriate committees of Congress of such loan.
A loan made or guaranteed under this section shall—
be disbursed in installments pursuant to a schedule determined by the Secretary;
have an interest rate that does not exceed a level that the Secretary determines appropriate, taking into account, as of the date on which the loan is made, the cost of funds to the Department of the Treasury for obligations of comparable maturity; and
have a term of not more than 25 years.
No loan may be guaranteed under this section unless the Secretary determines that—
the lender that made such loan is responsible; and
such loan provides adequate provisions to protect the interest of the United States.
For a loan with respect to a facility located within the United States, the lesser of—
$1,000,000,000 or 75 percent of the total cost of the construction, expansion, modernization, or repurposing of such facility for which the covered entity is seeking such loan in the case of a loan guaranteed under this section.
Notwithstanding subparagraph (A), a loan made or guaranteed under this section may not exceed the following amounts:
For a loan with respect to a facility located within the United States, the lesser of—
$2,000,000,000 or 75 percent of the total cost of the construction, expansion, modernization, or repurposing of such facility for which the covered entity is seeking such loan in the case of a loan guaranteed under this section.
For a loan with respect to a facility located outside of the United States, the lesser of $500,000,000 or 25 percent of the total cost of the construction, expansion, modernization, or repurposing of such facility for which the covered entity is seeking such loan.
A loan made or guaranteed under this section may include any other terms and conditions that the Secretary determines to be appropriate.
The protection of the financial interests of the United States provided by contractual terms of the project the covered entity plans to perform.
The expected financial strength of the covered entity—
at the time the loan or guarantee would be approved; and
throughout the loan term after the project is completed.
The financial strength of the investors and strategic partners of the covered entity, if applicable.
Other financial metrics, analyses, or criteria relied upon by the private lending community and other nationally recognized credit rating agencies that the Secretary determines relevant to the evaluation of the financial strength of the covered entity.
finance the construction, expansion, modernization, or repurposing of a facility, including through the acquisition of relevant equipment and site development, for critical material manufacturing;
finance the construction, expansion, modernization, or repurposing of a facility to manufacture relevant specialized equipment described in subsection (b)(1), including site development;
support the expansion or creation of educational and workforce pathways, including engagement with the community and relevant local entities through innovative partnerships, including apprenticeship programs;
support activities related to environmental protection and other sustainability practices, including the implementation of industrial decarbonization practices; or
pay reasonable costs related to the operating expenses for a facility described in paragraph (1), (2), or (3), including hiring a specialized workforce, acquiring essential materials, and performing complex equipment maintenance, as determined appropriate by the Secretary.
As a condition to receive a loan made or guaranteed under this section, the covered entity receiving such loan shall enter into an agreement with the Secretary under which, during the 10-year period beginning on the date of the first disbursement of such loan, the covered entity—
the Secretary determines that such covered entity violated the agreement;
such covered entity does not remedy such violation or the Secretary determines that such violation cannot be remedied; and
the Secretary determines that the return of such amounts is necessary.
shall—
in the case of a loan that is made under this section, revoke the undisbursed amount of such loan and, if the Secretary determines necessary under paragraph (1)(D)(iii), recover the full amount of such loan that has been disbursed; and
in the case of a loan guaranteed under this section, revoke the guarantee of such loan; and
Not later than 90 days after the date of receipt of a notification described in subparagraph (B) of paragraph (1) from a covered entity pursuant to an agreement between such covered entity and the Secretary entered into under such paragraph, the Secretary shall—
determine whether the planned transaction described in such notification would violate such agreement;
notify the covered entity of the determination; and
if the Secretary determines that such planned transaction would violate such agreement, require such covered entity to provide to the Secretary proof that such covered entity will not proceed with such planned transaction not later than 45 days after the Secretary provides the notification under clause (ii) with respect to such determination.
a notification of the planned transaction;
a brief description of how the Secretary determined that the planned transaction would be a violation; and
a summary of any actions or planned actions in response to such planned transaction.
The Secretary may make a determination described in paragraphs (1)(D)(i), (1)(D)(ii), (2), or (3)(A) with respect to a covered entity only after such covered entity has had an opportunity for a hearing on the record with respect to such determination.
the Secretary shall establish revised target dates by which the construction, expansion, modernization, or repurposing, as applicable, of the facility with respect to which such loan was made shall commence and complete; and
the relevant agreement under subsection (i)(1) shall be amended to reflect such revised target dates.
of the target dates determined with respect to each loan made or guaranteed under this section that exceeds $100,000,000; and
not later than 15 days after the provision of a waiver under paragraph (2)(B), of the terms of such waiver.
Notwithstanding any other provision of law, including the National Labor Relations Act (29 U.S.C. 151 et seq.), this subsection shall apply to any recipient of a loan under this section who is an employer and any labor organization who represents or seeks to represent any employees or only those employees who perform or will perform work funded by a loan provided under this section.
Any employer receiving a loan under this section shall recognize for purposes of collective bargaining a labor organization that demonstrates that a majority of the employees in a unit appropriate for such purposes and who perform or will perform work funded by a loan provided under this section have signed valid authorizations designating the labor organization as their collective bargaining representative and that no other labor organization is certified or recognized pursuant to section 9 of the National Labor Relations Act (29 U.S.C. 159) as the exclusive representative of any of the employees in the unit who perform or will perform such work. Upon such showing of majority status, the employer shall notify the labor organization and the National Labor Relations Board that the employer—
has determined that the labor organization represents a majority of the employees in such unit who perform or will perform such work; and
is recognizing the labor organization as the exclusive representative of the employees in such unit who perform or will perform such work for the purposes of collective bargaining pursuant to that section.
If a dispute over majority status or the appropriateness of the unit described in paragraph (2) arises between the employer and the labor organization, either party may request that the National Labor Relations Board investigate and resolve the dispute. If the Board finds that a majority of the employees in a unit appropriate for purposes of collective bargaining who perform or will perform work funded by a loan provided under this section have signed valid authorizations designating the labor organization as their representative for such purposes and that no other individual or labor organization is certified or recognized as the exclusive representative of any of the employees in the unit who perform or will perform such work for such purposes, the Board shall not direct an election but shall certify the labor organization as the representative described in section 9(a) of the National Labor Relations Act (29 U.S.C. 159(a)).
Not later than 10 days after an employer receiving funding under this section receives a written request for collective bargaining from a recognized or certified labor organization representing employees who perform or will perform work funded by a loan provided under this section, or within such period as the parties agree upon, the labor organization and employer shall meet and commence to bargain collectively and shall make every reasonable effort to conclude such bargaining and sign a collective bargaining agreement.
If, after the expiration of the 90-day period beginning on the date on which collective bargaining under paragraph (4) began, or such additional period as the parties may agree upon, the parties have failed to reach an agreement, either party may notify the Federal Mediation and Conciliation Service (referred to in this subsection as the Service
) of the existence of a dispute and request mediation. Whenever such a request is received, it shall be the duty of the Service promptly to put itself in communication with the parties and to use its best efforts, by mediation and conciliation, to bring them to agreement.
If, after the expiration of the 30-day period beginning on the date on which the request for mediation is made under paragraph (5), or such additional period as the parties may agree upon, the Service is not able to bring the parties to agreement by mediation and conciliation, the Service shall refer the dispute to a tripartite arbitration panel established in accordance with such regulations as may be prescribed by the Service.
A tripartite arbitration panel established under this clause with respect to a dispute shall be composed of 1 member selected by the labor organization, 1 member selected by the employer, and 1 neutral member mutually agreed to by the labor organization and the employer. Each such member shall be selected not later than 14 days after the expiration of the 30-day period described in subparagraph (A) with respect to such dispute. Any member not so selected by the date that is 14 days after the expiration of such period shall be selected by the Service.
A majority of a tripartite arbitration panel established under this clause with respect to a dispute shall render a decision settling the dispute as soon as practicable, and (absent extraordinary circumstances or by agreement or permission of the parties) not later than 120 days after the establishment of such panel. Such a decision shall be binding upon the parties for a period of 2 years, unless amended during such period by written consent of the parties. Such decision shall be based on—
the financial status and prospects of the employer;
the size and type of the operations and business of the employer;
the cost of living of the employees;
the ability of the employees to sustain themselves, their families, and their dependents on the wages and benefits they earn from the employer; and
the wages and benefits other employers in the same business provide their employees.
Any employer receiving funds under this section to procure goods or services shall require a contractor or subcontractor, whose employees perform or will perform work funded by a loan provided under this section, that contracts or subcontracts with the employer to comply with the requirements set forth in paragraphs (1) through (6).
In this subsection, the terms employee, employer, and labor organization have the meanings given the terms in section 2 of the National Labor Relations Act (29 U.S.C. 152).
Funds appropriated to carry out this Act may not be used to assist, promote, or deter organizing of labor organizations.
Davis-Bacon Act).
whether the national center has been established and operated in accordance with section 102; and
whether the loan program has been established and operated in accordance with this section, including—
whether the Secretary is making or guaranteeing loans under this section only to covered entities that meet the requirements in subsection (b);
whether the covered entities receiving loans made or guaranteed under this section are using the amounts of such loans in accordance with subsection (h);
whether the Secretary has complied with the limitations under subsection (g)(4) and under section 106(c); and
whether the Secretary is carrying out the agreements required under subsection (i), including any congressional notifications required by such subsection.
the Department of Agriculture;
the Department of Defense;
the Department of Energy;
the Department of Health and Human Services;
the Department of Homeland Security;
the Department of the Interior;
the Department of Labor;
the Department of the Treasury;
the Export-Import Bank of the United States;
the United States International Development Finance Corporation;
the White House Council of Environmental Quality;
the White House Office of Science and Technology Policy;
support the development of a resilient supply chain;
bolster the national, energy, and economic security of the United States; and
support the development of supply chain characteristics in the interests of the United States, including—
transparency and traceability;
environmental sustainability;
workforce security and safety; and
advise the Center on creating a robust understanding of a critical material supply chain, including through advancing the understanding of, with respect to such supply chain—
market dynamics including market manipulation by foreign countries of concern;
pricing and availability dynamics;
transparency and traceability;
environmental sustainability;
education and workforce development;
barriers to adopting innovative technologies, materials, and techniques;
operate the Investment Fund established under subsection (b); and
a summary of the advice provided to the Center established in section 102(a);
a summary of the membership of the public-private partnership;
a summary of the activities carried out by the Investment Fund established in subsection (b); and
a summary of any international collaborations carried out by the public-private partnership.
$15,000,000 for fiscal year 2026.
$30,000,000 for fiscal year 2027.
$45,000,000 for fiscal year 2028.
$60,000,000 for fiscal year 2029.
$75,000,000 for the period of fiscal year 2030 and each fiscal year thereafter prior to the expiration of the program.
Investment Fund) to support existing Federal and private investments to acquire, establish, or enhance facilities related to developing domestic and foreign critical material manufacturing capabilities for the national, energy, and economic security of the United States.
The Investment Fund shall—
invest in innovative partnerships with critical material supply chain stakeholders with a prioritization for starts-ups, small and medium-sized enterprises, and other entities supporting innovative technologies, materials, or techniques;
invest acquired profit from activities in subparagraphs (A) and (B) to further the mission of the Investment Fund; and
The Investment Fund shall—
be eligible to receive a loan under the loan program established in section 103(a) after submission of the application under subparagraph (B) of this paragraph; and
not be eligible to apply for or receive a loan guarantee under the loan program in section 103(a).
a list of projects, in accordance with the eligibility requirements described in section 103(b)(2), that the fund will support through the receipt of a Federal loan under such program; and
no deduction shall be denied, no tax attribute shall be reduced, and no basis increase shall be denied, by reason of the exclusion from gross income provided by clause (i); and
in the case that the Investment Fund is a partnership or S corporation—
Pursuant to section 103(i)—
the Investment Fund shall take on full responsibility for the required agreement and the actions of the projects that use funds awarded by the loan program established in section 103(a) to the Investment Fund.
include all actions taken by the Investment Fund upon receipt of each award;
be published on the internet website of the Department of Commerce.
Pursuant to section 103(j), the Secretary shall have the authority to recover, or dispense of, up to the full amount of each loan awarded by the loan program established in section 103(a) for a given fiscal year if—
the Investment Fund fails to comply with the required agreement in subparagraph (G); or
the Secretary is notified of the inability of the Investment Fund to use such an award in accordance with section 103(h).
be ineligible for future awards by such loan program; and
remain ineligible until—
the Investment Fund presents an executable plan that the Secretary determines appropriate to satisfy the requirements of section 103(b) or section 103(h);
Davis-Bacon Act).
Not later than 2 years after the first loan is awarded to the Investment Fund under the loan program established in section 103(a), the Inspector General of the Department of Commerce shall audit the Investment Fund and submit to Congress a report—
the requirements under section 103(h) regarding the proper use of awarded or guaranteed funds;
There is authorized to be appropriated to the Department of Commerce for the national center established in section 102 the following amounts for the applicable fiscal year:
$30,000,000 for fiscal year 2026.
$45,000,000 for fiscal year 2027.
$70,000,000 for fiscal year 2028.
$85,000,000 for fiscal year 2029.
$100,000,000 for each of fiscal years 2030 and any fiscal year thereafter before the date described in section 107.
There is authorized to be appropriated to the Department of Commerce for the loan and loan guarantee program established in section 103 the following amounts for the applicable fiscal year:
$1,000,000,000 for fiscal year 2026.
$2,500,000,000 for fiscal year 2027.
$5,000,000,000 for fiscal year 2028.
$7,500,000,000 for fiscal year 2029.
a maximum of 30 percent of the available amounts are provided with respect to investments into facilities in foreign countries of interest that—
relate to the extraction of critical materials significantly unavailable for domestic extraction; and
prioritize secondary impacts to the United States, including through purchase agreements with domestic manufacturers;
a maximum of 20 percent of the available amounts are provided with respect to investment into facilities within the United States relating to the extraction of domestically available critical materials in the United States;
the reclamation of critical materials from spent and damaged end-use components through recycling processes; or
the demonstration, deployment, or commercialization of innovative technologies such as qualified substitutes.
This title shall terminate on the date that is 10 years after the date of the enactment of this Act.
In this title:
The term appropriate committees of Congress means—
the Committee on Energy and Natural Resources, the Committee on Commerce, Science, and Transportation, the Committee on Foreign Relations, the Committee on Armed Services, and the Committee on Appropriations of the Senate; and
the Committee on Energy and Commerce, the Committee on Foreign Affairs, the Committee on Armed Services, the Committee on Science, Space, and Technology, the Committee on Appropriations, the Committee on Natural Resources, and the Committee on Ways and Means of the House of Representatives.
The term covered entity means a nonprofit entity, a private entity, a consortium of private entities, or a consortium of nonprofit, public, and private entities—
with a demonstrated ability to—
substantially finance, construct, expand, or modernize a facility relating to the extraction, processing or refining, conversion, recycling, or research and development of critical materials; or
substantially finance and repurpose an existing facility, including former manufacturing sites, to construct, expand, or modernize the facility for extraction, processing or refining, conversion, recycling, or research and development of critical materials; and
that is determined by the Secretary of Commerce, in consultation with the Secretary of Defense, the Secretary of Energy, the Secretary of the Interior, the Secretary of State, and the Director of National Intelligence—
not to be owned or operated by, or a subsidiary of—
any foreign entity of concern or an entity located in a foreign country of concern; or
any entity engaged in conduct that is detrimental to the national security or foreign policy of the United States, including entities that do not uphold international law relating to human rights or environmental protections.
covered trade actionmeans any ongoing investigation or final order pursuant to the Trade Act of 1974 (19 U.S.C. 2101 et seq.), section 701 of the Tariff Act of 1930 (19 U.S.C. 1671), section 731 of the Tariff Act of 1930 (19 U.S.C. 1673), or any other relevant trade law as determined by the Secretary.
The term critical material manufacturing means any manufacturing process related to any of the following:
Extraction of a critical material from the natural ecosystem, including as a byproduct.
Refining or processing a critical material.
The conversion of a critical material into a secondary compound.
The recycling of a critical material from used manufacturing components, including technology components.
Any other relevant manufacturing process that produces a qualified substitute for use in the critical material supply chain.
no products of the country are prohibited for importation into the United States pursuant to section 307 of the Tariff Act of 1930 (19 U.S.C. 1307).
The term industrial decarbonization practice means—
any technology, practice, or technique that lowers the environmental impact or energy requirements of an industrial process;
any agreement with a local or regionally relevant electrical utility to acquire the majority of the required power for a facility from renewable sources; or
other technologies, practices, or techniques to promote sustainability and reduce and mitigate any environmental degradation that the Secretary of Commerce, in consultation with the Secretary of Energy, deems eligible.
The term nonprofit entity means an entity described in section 501(c)(3) of the Internal Revenue Code of 1986 and exempt from taxation under section 501(a) of such Code.
The term person includes an individual, partnership, association, corporation, organization, or any other combination of individuals.
Subpart E of part IV of subchapter A of chapter 1 of the Internal Revenue Code of 1986 is amended by inserting after section 48E the following new section:
For purposes of section 46, the critical material investment credit for any taxable year is an amount equal to the applicable percentage of the qualified investment for such taxable year with respect to any critical material facility of an eligible taxpayer.
In the case of any critical material facility, the applicable percentage shall be 15 percent.
The critical material facility fulfills rules similar to the rules of section 45(b)(7).
a critical material that the Secretary, in consultation with the heads of other relevant Federal agencies and departments, determines has a supply which is significantly vulnerable to disruption (including restrictions associated with foreign political risk, abrupt demand growth, military conflict, violent unrest, anti-competitive or protectionist behaviors, and other risks throughout the supply chain),
a qualified substitute, or
a recycled critical material.
For the purpose of this section—
The term critical material has the meaning given such term in section 7002(a)(2) of the Energy Act of 2020.
The term critical material facility means a facility with respect to which the taxpayer makes an irrevocable election to have this subparagraph apply for which the primary purpose is—
extraction, processing, refining, or recycling of—
a critical material, or
a qualified substitute,
specialized manufacturing equipment used primarily to carry out a process described in clause (i) or (ii), or
specialized equipment for research and development relating to a purpose described in clause (i), (ii), or (iii).
The term technology component means—
any manufactured component used to manufacture any item which is essential to national security, to energy independence, or to the economic competitiveness of the United States, or
an eligible component (as defined in section 45X).
at any point during the taxable year, an entity under the influence, control, or ownership of—
a foreign entity of concern (as defined in section 9901 of the William M. (Mac) Thornberry National Defense Authorization Act for Fiscal Year 2021), or
For purposes of subsection (a), the qualified investment with respect to any critical material facility for any taxable year is the basis of any qualified property placed in service by the taxpayer during such taxable year which is part of such critical material facility.
For purposes of this subsection, the term qualified property means property—
which is tangible property,
with respect to which depreciation (or amortization in lieu of depreciation) is allowable,
which is—
constructed, reconstructed, or erected by the taxpayer, or
acquired by the taxpayer if the original use of such property commences with the taxpayer, and
which is integral to the operation of a critical material facility.
The term qualified property includes any building or its structural components which otherwise satisfy the requirements of subparagraph (A).
Clause (i) shall not apply with respect to a building or portion of a building used for offices, administrative services, or other functions unrelated to manufacturing.
The qualified investment with respect to any critical material facility shall not include that portion of the basis of any property which is attributable to qualified rehabilitation expenditures (as defined in section 47(c)(2)).
Rules similar to the rules of subsections (c)(4) and (d) of section 46 (as in effect on the day before the date of the enactment of the Revenue Reconciliation Act of 1990) shall apply for purposes of subsection (a).
Except as otherwise provided in paragraph (2)(A), in the case of a taxpayer making an election (at such time and in such manner as the Secretary may provide) under this subsection with respect to the credit determined under subsection (a), such taxpayer shall be treated as making a payment against the tax imposed by subtitle A (for the taxable year with respect to which such credit was determined) equal to the amount of such credit.
Rules similar to the rules of section 48D(d)(2) shall apply with respect to an election under paragraph (1).
No credit shall be allowed under section 45X or under section 45BB for any taxable year with respect to any critical material facility with respect to a credit is allowed under this section.
The credit allowed under this section shall not apply to property the construction of which begins after December 31, 2029.
andat the end of paragraph (6), by striking the period at the end of paragraph (7) and inserting
, and, and by adding at the end the following new paragraph:
Section 49(a)(1)(C) of such Code is amended by striking and
at the end of clause (vii), by striking the period at the end of clause (viii) and inserting , and
, and by adding at the end the following new clause:
Section 50(a)(2)(E) is amended by striking or 48E(e)
and inserting 48E(e), or 48F(b)(4)
.
The amendments made by this section shall apply to property placed in service after the date of the enactment of this Act.
Subpart D of part IV of subchapter A of chapter 1 of the Internal Revenue Code of 1986 is amended by inserting after section 45AA the following new section:
For purposes of section 38, the critical material production credit for any taxable year is an amount equal to the sum of the credit amounts determined under subsection (b) with respect to each eligible material which is—
produced by the taxpayer in the United States, and
during the taxable year, sold by such taxpayer to an unrelated person.
Any eligible material produced and sold by the taxpayer shall be taken into account only if the production and sale described in paragraph (1) is in a trade or business of the taxpayer.
For purposes of this subsection, a taxpayer shall be treated as selling eligible material to an unrelated person if such eligible material is sold to such person by a person related to the taxpayer.
At the election of the taxpayer (in such form and manner as the Secretary may prescribe), a sale of eligible material by such taxpayer to a related person shall be deemed to have been made to an unrelated person.
As a condition of, and prior to, any election described in clause (i), the Secretary may require such information or registration as the Secretary deems necessary for purposes of preventing duplication, fraud, or any improper or excessive amount determined under paragraph (1).
Subject to paragraph (2), the amount determined under this subsection with respect to any eligible material shall be equal to—
in the case of a taxpayer producing eligible material at the initial production stage, the eligible rate shall be equal to 15 percent of the taxpayer’s cost of production, or
in the case of an eligible material with respect to which each input eligible material is sourced—
domestically, 10 percent of the taxpayer’s cost of production, or
domestically or from a country listed by the Secretary under subsection (d)(1), 7.5 percent of the taxpayer’s cost of production.
In the case of a taxpayer that meets 1 of the following criteria with respect to the eligible material with respect to which the amount is determined under paragraph (1), the amount determined under paragraph (1) (determined without regard to this paragraph) shall be increased by 10 percentage points:
a critical material that the Secretary, in consultation with the heads of other relevant Federal agencies and departments, determines has a supply which is significantly vulnerable to disruption (including restrictions associated with foreign political risk, abrupt demand growth, military conflict, violent unrest, anti-competitive or protectionist behaviors, and other risks throughout the supply chain),
a qualified substitute, or
a recycled critical material.
In the case of any eligible material sold after December 31, 2030, the amount determined under this subsection with respect to such material shall be equal to the product of—
the amount determined under paragraph (1) with respect to such material, as determined without regard to this paragraph, multiplied by
the phase out percentage under subparagraph (B).
The phase out percentage under this subparagraph is equal to—
in the case of an eligible material sold during calendar year 2031, 75 percent,
in the case of an eligible material sold during calendar year 2032, 50 percent,
in the case of an eligible material sold during calendar year 2033, 25 percent,
in the case of an eligible material sold after December 31, 2034, 0 percent.
For purposes of this section—
Persons shall be treated as related to each other if such persons would be treated as a single employer under the regulations prescribed under section 52(b).
Under regulations prescribed by the Secretary, rules similar to the rules of subsection (d) of section 52 shall apply.
For purposes of this section, a person shall be treated as having sold an eligible material to an unrelated person if such material is integrated, incorporated, or assembled into a technology component which is sold to an unrelated person.
The country is not—
a foreign entity of concern (as defined in section 9901 of the William M. (Mac) Thornberry National Defense Authorization Act for Fiscal Year 2021), or
The Secretary, in consultation with the Secretary of Labor, shall establish such apprenticeship requirements as are appropriate for each affected industry for purposes of subsection (b)(2)(A).
For the purposes of calculating the eligible credit amount for a taxpayer, the taxpayer shall be unable to claim an eligible credit under this section if the taxpayer has already claimed an eligible credit for production of an applicable critical mineral under section 45X for the current year in which this section is being claimed.
For the purpose of this section—
The terms eligible material, qualified substitute, critical material, and technology component have the meanings given such terms in section 48F.
The term initial production stage means a stage of production in which the taxpayer produces an eligible material through—
extraction,
recycling, or
in the case of a qualified substitute, any means.
The term taxpayer’s cost of production means amounts paid or incurred by the taxpayer to produce an eligible material, excluding amounts paid or incurred—
for labor,
for transportation of any property, and
administrative expenses.
Section 38(b) of such Code is amended by striking plus
at the end of paragraph (40), by striking the period at the end of paragraph (41) and inserting , plus
, and by adding at the end the following new paragraph:
The amendments made by this section shall apply to materials sold after the date of the enactment of this Act.
The Secretary of the Treasury shall establish an advisory committee to be composed of not fewer than 15 members, including representatives of industry, academia, trade organizations, environmental protection organizations, labor organizations, and international partners, as appropriate, who are qualified to provide advice on matters relevant to increasing domestic capacity of critical materials manufacturing.
The Secretary, in carrying out paragraph (1), shall ensure that at least 2 members of the advisory committee established under such paragraph are representatives of—
an environmental protection organization, and
a labor organization.
Section 14 of the Federal Advisory Committee Act (5 U.S.C. App.) shall not apply to the advisory committee established under this subsection.
In carrying out the development of guidance necessary to the implementation of subsection (a), the Secretary of the Treasury shall consult the following:
The advisory committee established under subsection (a)(1).
The Secretary of Agriculture.
The Secretary of Commerce.
The Secretary of Defense.
The Secretary of Health and Human Services.
The Secretary of Homeland Security.
The United States Trade Representative.
The Director of the White House Office of Science and Technology Policy.
Such other head of a Federal agency as the Secretary determines appropriate.
in the section heading, by striking minerals
and inserting materials
;
in subsection (a)—
in the subsection heading, by striking minerals
and inserting materials
;
by amending paragraph (1) to read as follows:
in paragraph (2)—
by amending subparagraph (A) to read as follows:
mineralsand inserting
materials;
in subparagraph (D), as so redesignated, by striking minerals
and inserting materials
;
mineralsand inserting
materials; and
mineralsand inserting
materials;
by redesignating paragraph (3) as paragraph (4); and
by inserting after paragraph (2) the following new paragraph:
by amending subsection (c) to read as follows:
The table of contents in sections 1 and 10000 of Public Law 117–167 are amended by striking the items relating to section 10359 and inserting the following new items:
Section 40210 of the Infrastructure Investment and Jobs Act (42 U.S.C. 18743) is amended—
in subsection (a)—
by inserting after paragraph (2) the following new paragraph:
by adding at the end the following new paragraph:
The term skilled technical workforce has the meaning given such term in section 4(b) of the Innovations in Mentoring, Training, and Apprenticeships Act (42 U.S.C. 1862p note; Public Law 115–402).
by amending subsection (b) to read as follows:
In order to support supply chain resiliency, the Secretary shall issue awards, on a competitive basis, to eligible entities described in paragraph (2) to support research and development activities that will accelerate innovation to advance critical materials mining and associated extraction technologies and strategies for the purposes of—
making better use of domestic resources;
eliminating national reliance on critical materials that are subject to supply disruptions; and
promoting sustainability with critical materials mining.
Entities eligible to receive an award under paragraph (1) are the following:
Federally funded facilities, including National Laboratories, Manufacturing USA institutes, and other federally funded research and development centers.
Institutions of higher education.
Nonprofit organizations.
Consortia of entities described in subparagraphs (A) through (D), including consortia that collaborate with private industry.
Activities funded by an award under this section may include the following:
Advancing mining research and development activities to develop new mapping and mining technologies and techniques, including advanced critical material extraction and separation—
to improve existing, or to develop new, supply chains of critical materials; and
to yield more efficient, economical, and environmentally benign mining practices, including through innovative technology and relevant mining equipment applications.
Conducting long-term earth observation of reclaimed mine sites, including the study of the evolution of microbial diversity at those sites.
Examining the application of artificial intelligence for geological exploration of critical materials, including what size and diversity of data sets would be required.
Examining the application of machine learning for detection and sorting of critical materials, including what size and diversity of data sets would be required.
Conducting detailed isotope studies of critical materials and the development of more refined geologic models.
post-secondary students to expand the critical materials workforce, partially students in engineering and material science disciplines; and
the skilled technical workforce.
In carrying out this subsection, the Secretary shall collaborate with the Secretary of the Interior, the Director of the National Science Foundation, the Director of the National Institute of Standards and Technology, the Director of the Office of Science and Technology Policy, and the heads of other relevant Federal departments and agencies, including facilities such as the National Laboratories, Manufacturing USA institutes, and other federally funded research and development centers, academia, industry, nonprofit organizations, labor organizations, and international partners, as appropriate, to carry out the purposes described in paragraph (1).
The Secretary shall ensure awards issued under this subsection are complementary and not duplicative of existing programs across the Department of Energy and the Federal Government.
In support of the security and competitiveness of the United States, the Director of the National Science Foundation (in this section referred to as the Director
) shall make awards, on a competitive basis, to institutions of higher education, nonprofit organizations, or private entities (or consortia of such institutions, organizations, or entities) for the purposes described in subsection (b).
The purposes described in this subsection include any of the following:
Innovative and emerging materials for improved or new uses within the supply chain, including the following:
Innovative alloys, magnets, anodes, and other multichemical compound materials.
Qualified substitutes designed to replace part or all of a traditionally extracted critical material within a downstream application.
Byproducts of existing supply chains that may be recovered at sufficient quantities for use.
Innovative and emerging downstream applications that—
reduce reliance on critical material supply chains subject to disruptions; or
reduce or replace part or all of a traditionally extracted critical material.
Any technology, material, or technique to promote circularity and sustainability within the critical material supply chain through increasing the reusability of a critical material.
Providing training and research opportunities to undergraduate and graduate students to ensure a robust critical material technical workforce.
Providing training and other educational pathways to ensure a robust critical material manufacturing workforce through short-term credentials and career and technical education activities, including the following:
Pathways designed to upskill and reskill, as the case may be, the existing workforce.
Pathways and emerging trends designed to address workforce shortages, including as a result of skill gaps, of the future workforce.
Qualified substitutes.
Byproducts.
Downstream applications using innovative combinations of critical materials, including byproducts, qualified substitutes, or recycled content.
Decarbonization technologies, including any such technology that improves sustainability of the manufacturing process for critical materials.
Recycling technologies.
The Director shall, on a competitive, merit-reviewed basis, make awards to institutions of higher education and nonprofit organizations (or consortia of such institutions and organizations, which may also include private entities) to establish partnerships to enhance and broaden participation in fields relevant for education and training for the critical material supply chain.
Awards made under this subsection shall be used for the following:
To—
conduct training and education activities, including curricula design, development, dissemination, and assessment; and
share information and best practices across the network of awardees.
To develop regional partnerships among associate degree-granting colleges, bachelor degree-granting institutions, workforce development programs, labor organizations, and industry to create a diverse national technical workforce trained in fields relevant to the critical material supply chain and ensure education and training is meeting the evolving needs of industry.
To facilitate partnerships with employers, employer consortia, or other private sector organizations that offer apprenticeships, internships, or applied learning experiences in fields relevant to the critical material supply chain.
To develop shared infrastructure available to institutions of higher education, two-year colleges, and private organizations to enable experiential learning activities and provide physical or digital access to training facilities and industry-standard tools and processes.
To create and disseminate public outreach to support awareness of education and career opportunities relevant to the critical material supply chain, including through outreach to K–12 schools and STEM-related organizations.
To collaborate and coordinate with industry and existing public and private organizations conducting education and workforce development activities in fields relevant to the critical material supply chain, as practicable.
To the extent practicable, the Director shall prioritize awardees under paragraph (1) that include entities focused on supporting the creation of a technical workforce relevant to the critical material supply chain, including entities such as associate degree-granting colleges, career and technical entities, workforce development programs, labor organizations, and industry.
The Director shall ensure awards made under this section are complementary and not duplicative of existing programs across the National Science Foundation and the Federal Government.
Director) shall carry out a critical materials program to enable advances and breakthroughs in measurement science, technical standards, material characterization, instrumentation, testing, and manufacturing, including recycling, capabilities that will accelerate research and development and produce relevant technical standards for sustainable, secure, and traceable critical material supply chains.
Activities related to advancing innovative materials, including byproducts and qualified substitutes, recycled materials, and innovative combinations for downstream applications.
Activities related to advancing recycling processes of critical materials, including techniques to improve reusability of recycled content.
Activities related to paragraphs (1) through (3) with international partners, as appropriate.
Other activities identified by the Director, as appropriate, to advance the goal described in such subsection.
The members of the Consortium may include representatives from the National Laboratories, Manufacturing USA institutes, and other federally funded research and development centers, academia, industry, nonprofit organizations, labor organizations, and international partners, as appropriate.
The Consortium may not offer membership to any individual who is a representative of a foreign entity of concern or a foreign entity of a foreign country of concern.
The Consortium shall—
Not later than two years after the establishment of the Consortium, the Director shall submit to the Committee on Commerce, Science, and Transportation of the Senate and the Committee on Science, Space, and Technology of the House of Representatives a report summarizing the findings of the Consortium.
The Director shall ensure that the activities carried out by the Consortium are complementary and not duplicative of the collaborative activities carried out by the Critical Materials Consortium established under section 7002(g)(8) of the Energy Act of 2020 (30 U.S.C. 1606(g)(8)).
The Consortium shall terminate five years after its establishment.
In carrying out this section, the Director shall collaborate with the Secretary of Energy.
The Director shall ensure activities carried out under this section are complementary and not duplicative of existing programs across the National Institute of Standards and Technology, the Department of Energy, and other Federal departments and agencies.
Subsection (d) of section 40210 of the Infrastructure Investment and Jobs Act (42 U.S.C. 18743) is amended to read as follows:
The Secretary shall establish a grant program to finance pilot projects to promote domestic capacity, reduce reliance on supply chains subject to disruptions, and support innovation in the critical material supply chain.
Pilot projects under paragraph (1) may include any of the following to increase the domestic capabilities of the United States to manufacture critical materials across the entire cycle of the critical material supply chain:
Innovative technologies, including applications for manufacturing equipment and industrial decarbonization.
Innovative and emerging materials for improved or new uses with the supply chain, including qualified substitutes, byproducts, or recycled or reclaimed critical materials.
Innovative and emerging downstream applications to reduce reliance on critical materials subject to supply chain disruptions.
Any other technology, material, or technique to promote circularity and sustainability, including through environmentally benign processes, within the critical material supply chain.
A grant awarded under paragraph (1) may not exceed $25,000,000.
In awarding grants under paragraph (1), the Secretary shall give priority to projects that the Secretary determines are likely to be economically viable over the long term.
In awarding grants under paragraph (1), the Secretary shall seek to award not less than 40 percent of the total amount of grants awarded during the fiscal year for projects relating to the following:
Recycling.
In awarding grants under paragraph (1), the Secretary shall ensure that pilot projects do not export for any manufacturing process of a critical material to a foreign country of concern.
In carrying out this subsection, the Secretary shall collaborate with the Secretary of Commerce, the Secretary of Defense, the Secretary of the Interior, the Director of the National Science Foundation, the Director of the National Institute of Standards and Technology, the Director of the Office of Science and Technology Policy, and the heads of other relevant Federal departments and agencies, including facilities such as the National Laboratories, Manufacturing USA institutes, and other federally funded research and development centers, academia, industry, nonprofit organizations, labor organizations, and international partners, as appropriate, to carry out the purposes described in paragraph (1).
The Secretary shall ensure awards made under paragraph (1) are complementary and not duplicative of existing programs across the Department of Energy and the Federal Government.
There is authorized to be appropriated to the Secretary to carry out this subsection $150,000,000 for each of fiscal years 2026 through 2030.
In this subsection:
The term critical material supply chain means the lifecycle of a critical material, including the extraction, processing or refining, conversion, and recycling of a critical material.
The term foreign country of concern has the meaning given such term in section 9901 of the William M. (Mac) Thornberry National Defense Authorization Act for Fiscal Year 2021 (15 U.S.C. 4651).
The term refined or purified critical material means a critical material that has undergone any relevant manufacturing process to remove impurities and to meet industry standards of purity or concentration for downstream use cases post-extraction or recycling.
In this title:
The term byproduct has the meaning given such term in section 7002(a)(1) of the Energy Act of 2020 (30 U.S.C. 1606(a)(1)).
The term conversion means the process to alter a refined or purified critical material to a secondary compound that is subject to supply chain disruptions relevant to the national, energy, and economic security of the United States, including the manufacturing of magnets, alloys, or multicompound chemistries, including such chemistries at solid, liquid, or gaseous states.
The term critical material has the meaning given such term in section 7002(a)(2) of the Energy Act of 2020 (30 U.S.C. 1606(a)(2)).
The term critical material supply chain means the lifecycle of a critical material, including the extraction, processing or refining, conversion, and recycling of a critical material.
The term foreign country of concern has the meaning given such term in section 9901 of the William M. (Mac) Thornberry National Defense Authorization Act for Fiscal Year 2021 (15 U.S.C. 4651).
The term foreign entity of concern has the meaning given such term in section 9901 of the William M. (Mac) Thornberry National Defense Authorization Act for Fiscal Year 2021 (15 U.S.C. 4651).
The term technical standard has the meaning given such term in section 12(d)(5) of the National Technology Transfer and Advancement Act of 1995 (15 U.S.C. 272 note).