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Expands the 45X production tax credit to add nine critical minerals, allows certain ore extraction costs to qualify when refined, and removes a metallurgical coal reduced-rate reference.
Official title: Amend the Internal Revenue Code of 1986 to expand and improve the advanced manufacturing production tax credit.
Introduced August 6, 2026 by John R. Curtis · Last progress August 6, 2026
The bill expands refundable production tax credits and earlier eligibility to bolster domestic critical-mineral supply chains and help miners/refiners, while increasing federal costs, adding compliance burdens, complicating some foreign sourcing, and producing uncertain effects for metallurgical coal.
Manufacturers, defense and electrification industries (and U.S. consumers) gain stronger domestic supply chains because the bill expands the list of covered critical minerals, reducing reliance on foreign sources for key components.
Domestic miners and refiners (including small businesses and energy workers, particularly in rural areas) gain greater access to a refundable/advance production tax credit for additional critical minerals produced and sold after 12/31/2025, improving project economics and cash flow.
Upstream miners (ore extractors) can claim the credit earlier by including qualified ore extraction costs when ore is later refined into a qualifying critical mineral, helping early-stage finance and investment for extraction operations.
All taxpayers face higher fiscal costs because expanding the credit to more minerals increases government outlays, which could raise deficits or crowd out other spending unless offsets are identified.
Small refiners and miners will incur additional administrative and compliance burdens to obtain refiner certifications and to track/verify eligible extraction costs, increasing time and recordkeeping costs.
Businesses that source ore internationally may face disrupted supply relationships and added complexity because the bill limits eligibility for certain foreign-extracted ores (excluding ores from 'countries of concern' and some foreign ores commercially extracted in the U.S.).
Based on analysis of 2 sections of legislative text.
Adds several minerals to the existing advanced manufacturing production tax credit and lets certain ore extraction costs qualify for the credit when the ore is later refined into an applicable critical mineral. It also removes a special reduced credit-rate parenthetical that had applied to metallurgical coal. The changes become effective for production/sales after December 31, 2025, and for eligible extraction costs incurred after December 31, 2025. The bill includes rules limiting foreign-extracted ore eligibility and requires refiner certification and Treasury regulations to prevent double benefits.