Sponsors
The bill gives targeted tax breaks to rare-earth mine owners to encourage domestic extraction and potential local job growth, at the cost of reduced federal revenue and unequal tax treatment for other taxpayers.
Owners/operators of qualifying rare earth mining properties can claim a 22% percentage depletion deduction, lowering their taxable income and federal tax liability.
Mining communities and investors may see increased investment and potential job creation because expanding the list of eligible deposits makes rare earth extraction more attractive.
Federal budget and taxpayers will face reduced federal tax revenues from the expanded depletion allowance, which could increase the deficit or reduce funding for other programs.
Other taxpayers and competing industries may be disadvantaged because the provision creates targeted unequal tax treatment by granting a benefit only to owners/operators of specific mineral deposits.
Based on analysis of 4 sections of legislative text.
Expands which rare-earth deposits qualify for the 22% percentage-depletion tax allowance under federal law.
Introduced March 10, 2026 by Jon Husted · Last progress March 10, 2026
Amends federal tax law to expand which rare-earth mineral deposits qualify for the 22% percentage depletion allowance, increasing the number of rare-earth deposits that can claim that tax benefit. One section only provides the short citation and does not change law; the substantive change takes effect for taxable years beginning after the date of enactment.