H.R.1496

Rare Earth Magnet Security Act of 2025 establishes a tax credit for domestic production of high-performance rare earth magnets.

The Rare Earth Magnet Security Act of 2025 amends the Internal Revenue Code to create a tax credit for the domestic production of high-performance rare earth magnets. The credit applies to magnets manufactured or produced by a taxpayer and sold to an unrelated person during the taxable year. The credit amount is $20 per kilogram for magnets not meeting the 90% domestic material requirement and $30 per kilogram for those that do. The credit phases out based on the year of production, starting at 70% in 2035, 35% in 2036 and 2037, and 0% after 2037.