HouseH.R. 8780119th Congress

Critical Mineral and Extraction Tax Parity Act

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[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 8780 Introduced in House (IH)]

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119th CONGRESS
  2d Session
                                H. R. 8780

 To amend the Internal Revenue Code of 1986 to expand and improve the 
             advanced manufacturing production tax credit.

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                              May 13, 2026

Mr. Moore of Utah (for himself, Mr. Buchanan, Mr. Carey, Mr. Miller of 
Ohio, and Mr. Bean of Florida) 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 expand and improve the 
             advanced manufacturing production tax credit.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Critical Mineral and Extraction Tax 
Parity Act''.

SEC. 2. EXPANSION AND IMPROVEMENT OF ADVANCE MANUFACTURING PRODUCTION 
              TAX CREDIT.

    (a) Inclusion of Additional Critical Minerals.--
            (1) In general.--Section 45X(c)(6) of the Internal Revenue 
        Code of 1986 is amended--
                    (A) in subparagraph (AA), by inserting after clause 
                (xxv) the following new clauses:
                            ``(xxvi) Boron.
                            ``(xxvii) Copper.
                            ``(xxviii) Lead.
                            ``(xxix) Metallurgical coal.
                            ``(xxx) Potash.
                            ``(xxxi) Rhenium.
                            ``(xxxii) Silicon.
                            ``(xxxiii) Silver.
                            ``(xxxiv) Uranium.'', and
                    (B) by adding at the end the following new 
                subparagraph:
                    ``(BB) Phosphate.--Phosphate which is--
                            ``(i) converted to--
                                    ``(I) phosphoric acid, or
                                    ``(II) phosphorus with a minimum 
                                purity of 99 percent phosphorus by 
                                mass, or
                            ``(ii) phosphate rock purified to a minimum 
                        purity of 20 percent phosphorus pentoxide by 
                        mass suitable for use in the production of 
                        phosphoric acid.''.
            (2) Effective date.--The amendments made by this subsection 
        shall apply to minerals produced and sold after December 31, 
        2025.
    (b) Inclusion of Ore Extraction Costs in Advanced Manufacturing 
Production Credit.--
            (1) In general.--Section 45X(d) of the Internal Revenue 
        Code of 1986 is amended--
                    (A) by redesignating the paragraph (4) relating to 
                restrictions relating to prohibited foreign entities as 
                paragraph (5), and
                    (B) by adding at the end the following new 
                paragraph:
            ``(6) Extraction costs for critical minerals.--
                    ``(A) In general.--In the case of a taxpayer that 
                extracts ore that is subsequently refined into an 
                applicable critical mineral, costs incurred by the 
                taxpayer with respect to such extraction shall be 
                treated as costs described in subsection (b)(1)(M) for 
                purposes of this section if such taxpayer submits to 
                the Secretary a certification from the refiner of such 
                ore that--
                            ``(i) such ore has been refined into an 
                        applicable critical mineral, and
                            ``(ii) such refiner sold the applicable 
                        critical mineral to an unrelated person (as 
                        defined in subsection (a)(3)) and such sale 
                        occurred in a trade or business of the refiner.
                    ``(B) Certain foreign ore not eligible.--The cost 
                of extracting ore shall be taken into account under 
                subparagraph (A) only if--
                            ``(i) such ore was extracted in the United 
                        States, or
                            ``(ii) in the case of ore extracted outside 
                        of the United States--
                                    ``(I) the ore is of a type not 
                                extracted in the United States in 
                                commercial quantities, and
                                    ``(II) the ore was not extracted in 
                                a foreign country of concern (as 
                                defined in section 10612(a)(1) of the 
                                Research and Development, Competition, 
                                and Innovation Act (42 U.S.C. 
                                19221(a)(1))).
                    ``(C) Regulations preventing double benefit.--The 
                Secretary shall issue such regulations or guidance as 
                may be necessary or appropriate to ensure that no costs 
                which are treated as costs described in subsection 
                (b)(1)(M) by reason of subparagraph (A) are included, 
                directly or indirectly, in the costs of production of 
                any applicable critical mineral by any taxpayer except 
                as provided by such subparagraph.''.
            (2) Effective date.--The amendments made by this subsection 
        shall apply to amounts paid or incurred after December 31, 
        2025.
    (c) Repeal of Reduction in Credit Amount for Metallurgical Coal.--
            (1) In general.--Section 45X(b)(1)(M) of the Internal 
        Revenue Code of 1986 is amended by striking ``(2.5 percent in 
        the case of metallurgical coal)''.
            (2) Effective date.--The amendment made by this subsection 
        shall apply to minerals produced and sold after December 31, 
        2025.
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