Critical Mineral and Extraction Tax Parity Act

Key Points

• The bill expands the list of critical minerals eligible for the advanced manufacturing production tax credit (Section 45X) by adding boron, copper, lead, metallurgical coal, potash, rhenium, silicon, silver, uranium, and phosphate. This broadens the range of domestic mining activities that qualify for federal tax breaks.
• Mining companies can now count their ore extraction costs toward the production tax credit, not just processing and refining costs. This is a significant expansion because it rewards the earliest, most capital-intensive stage of mineral production.
• To prevent foreign adversaries from benefiting, ore extracted outside the U.S. only qualifies if it is a type not commercially mined in the U.S. and does not come from a "foreign country of concern." This aims to reduce dependence on countries like China and Russia for critical minerals.
• The bill removes a prior rule that gave metallurgical coal (used for steelmaking) a reduced credit rate of 2.5%, putting it on equal footing with other critical minerals at the full 10% rate.
• All changes apply retroactively to minerals produced, sold, or extraction costs incurred after December 31, 2025, meaning qualifying companies could begin claiming these expanded credits on their 2026 tax filings.