Rare Earth Magnet Security Act of 2025

Sponsor: Catherine Cortez Masto (Democratic-NV)June 5, 2025

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Introduced

In Committee

Passed One Chamber

Passed Both Chambers

Signed into Law

Read twice and referred to the Committee on Finance.

Companies making special magnets in the U.S. would get new tax credits.

Companies that make special high-performance magnets in the U.S. would get new tax credits. They could receive $20 or $30 for each kilogram produced, depending on where their materials come from. This aims to boost U.S. production, but the credit would begin to phase out in 2035.

What Would Change

Currently, there is no specific tax credit for companies that make high-performance rare earth magnets in the United States. This bill would create a new tax credit, offering $20 per kilogram for U.S.-made magnets, or $30 per kilogram if at least 90 percent by weight of the component materials are also U.S.-produced. This credit would apply to tax years starting after December 31, 2024, but would begin to phase out in 2035.

Key Provisions

Creates a new tax credit for companies that make high-performance rare earth magnets in the United States.
Provides a $20 tax credit for each kilogram of U.S.-made rare earth magnets sold.
Offers an enhanced $30 tax credit per kilogram if at least 90 percent of the magnet's raw materials are also produced in the U.S.
Blocks the tax credit if any raw materials for the magnets come from certain "non-allied foreign nations."
Phases out the tax credit starting in 2035, ending it completely after December 31, 2037.
Lets companies choose to receive the tax credit as a direct payment instead of just reducing their tax bill.

View on Congress.gov

S 1979 · 119th Congress · June 5, 2025 · AI Summary by gemini-2.5-flash · 9/10

Rare Earth Magnet Security Act of 2025

What Would Change

Key Provisions

Lobbying Activity