S 1979

This bill, the Rare Earth Magnet Security Act of 2025, creates a tax credit for U.S. manufacturers of high-performance rare earth magnets. The credit is based on the amount of magnets produced domestically, with an additional bonus for magnets using at least 90% domestically sourced rare earth materials. The credit will phase out over time, and there are restrictions on sourcing component materials from non-allied foreign nations, with exceptions for wartime seized materials and certain critical materials. It also establishes a mechanism for taxpayers to elect to pay a portion of the credit against their tax liability.