S.1979

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. This credit applies to magnets manufactured or produced in the ordinary course of a trade or business and sold to an unrelated person. The credit amount is $20 per kilogram for magnets produced in the United States and $30 per kilogram if at least 90% of the component rare earth materials are produced domestically. The credit phases out starting in 2035, reducing by 70% in 2035, 35% in 2036 and 2037, and fully by 2038.