[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4932 Introduced in House (IH)]
<DOC>
117th CONGRESS
1st Session
H. R. 4932
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
August 3, 2021
Mr. Stauber 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 Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Manufacturing America's Mineral
Security Act''.
SEC. 2. FINDINGS.
Congress finds the following:
(1) It is in America's best interest to ensure a robust and
secure domestic supply chain for U.S. manufacturers.
(2) The United States increasing reliance on foreign
sources of metals and minerals threatens our economic and
national security while providing our geopolitical rivals, such
as China and Russia, leverage over our economy.
(3) Incentivizing domestic mineral and metal production and
the purchase of these materials will make our Nation's supply
chains more secure and resilient.
SEC. 3. ADDITIONAL DEDUCTION FOR COST OF CERTAIN MATERIALS PURCHASED
DIRECTLY FROM A DOMESTIC SMELTER OR PROCESSOR.
(a) In General.--Part VI of subchapter B of chapter 1 of the
Internal Revenue Code of 1986 is amended by inserting after section 181
the following new section:
``SEC. 182. ADDITIONAL DEDUCTION FOR COST OF CERTAIN MATERIALS
PURCHASED DIRECTLY FROM A DOMESTIC SMELTER OR PROCESSOR.
``(a) In General.--There shall be allowed as a deduction (in
addition to any other deduction allowed under this chapter for the cost
of specified domestically produced materials) an amount equal to 10
percent of the cost of specified domestically produced materials if
such materials are acquired by the taxpayer directly from the domestic
smelter or processor of such material.
``(b) Specified Domestically Produced Materials.--For purposes of
this section--
``(1) In general.--The term `specified domestically-
produced materials' means any specified material if such
material is--
``(A) in the case of a mine product, smelted or
processed in the United States by direct smelting of
ore;
``(B) in the case of a mine tailings product,
beneficiated in the United States;
``(C) in the case of metal or metal compound
production--
``(i) reprocessed from slags or residues in
the United States; or
``(ii) melted, sputtered, or otherwise
produced in the United States;
``(D) in the case of alloy production, produced by
melting together metals in the United States to form an
alloy; and
``(E) in the case of magnet production, sintered or
bonded and magnetized in the United States.
``(2) Specified material.--
``(A) In general.--The term `specified material'
means minerals that are necessary--
``(i) for the energy infrastructure of the
United States, including--
``(I) pipelines;
``(II) refining capacity;
``(III) electrical power generation
and transmission; and
``(IV) renewable energy production;
``(ii) for community resiliency, coastal
restoration, and ecological sustainability for
the coastal United States;
``(iii) to support domestic manufacturing,
agriculture, housing, telecommunications,
healthcare, and transportation infrastructure;
or
``(iv) for the economic security of, and
balance of trade in, the United States.
``(B) Materials needed for national defense.--The
term `specified material' shall include all Materials
of Interest listed by the Defense Logistics Agency.
``(C) Exceptions.--The term `specified material'
shall not include--
``(i) fuel minerals, including oil, natural
gas, or any other fossil fuels;
``(ii) water, ice, or snow; or
``(iii) sand, stone, gravel, pumice,
pumicite, cinders, or clay.
``(c) Domestic Smelter or Processor.--For purposes of this section,
the term `domestic smelter or processor' means, with respect to any
specified material, the person performing the activity described in
subsection (b)(1) with respect to such material.''.
(b) Clerical Amendment.--The table of sections for part VI of
subchapter B of chapter 1 of such Code is amended by inserting after
the item relating to section 181 the following new item:
``Sec. 182. Additional deduction for cost of certain materials
purchased directly from a domestic smelter
or processor.''.
(c) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after the date of the enactment of
this Act.
<all>