Critical Mineral and Extraction Tax Parity Act

Expanded Tax Credit Eligibility: The bill adds several minerals including Boron, Copper, Lead, Metallurgical coal, Potash, Rhenium, Silicon, Silver, and Uranium to the list of covered minerals under Section 45X(c)(6) (Section 2(a)). This expands the scope of the tax credit to include these specific resources.

Inclusion of Phosphate: The bill adds phosphate to the list of applicable minerals if it meets specific purity requirements for phosphoric acid or phosphorus (Section 2(a)).

Treatment of Extraction Costs: For taxpayers who extract ore that is later refined into a critical mineral, the bill allows extraction costs to be treated as certain production costs under Section 45X(d), provided specific certification and sale requirements are met (Section 2(b)).

Benefits for Domestic and Specific Foreign Ore: The bill allows extraction costs to be included if the ore was extracted in the United States, or if the ore was extracted outside the U.S. in a type not extracted in the U.S. in commercial quantities and not in a foreign country of concern (Section 2(b)).

Removal of Coal Credit Reduction: The bill repeals the specific 2.5 percent reduction in the credit amount that was previously applied to metallurgical coal (Section 2(c)).

Restrictions on Foreign Ore: Extraction costs for ore extracted outside of the United States may not be eligible for the credit if the ore is of a type already extracted in the United States in commercial quantities, or if it was extracted in a foreign country of concern (Section 2(b)).

Regulatory Oversight to Prevent Double Benefits: The Secretary is required to issue regulations or guidance to ensure that the treated extraction costs are not included in the production costs of any applicable critical mineral by any taxpayer, except as provided by the act (Section 2(b)).