Rare Earth Magnet Security Act of 2025

Creates a new tax credit to encourage U.S. production of rare-earth permanent magnets by paying manufacturers per kilogram of qualifying magnet produced and sold. The base credit is $20 per kilogram, rising to $30/kg if at least 90% of the component rare-earth materials are U.S.-produced; the credit is subject to sourcing rules, certification, an option to treat part of the credit as a tax payment, and a phaseout after 2034. The credit applies to taxable years beginning after December 31, 2024, and includes special sourcing exceptions and IRS certification and reporting requirements.

Introduced June 5, 2025 by Catherine Marie Cortez Masto · Last progress June 5, 2025