A Republican bill with 2 Democratic cosponsors · See all 2 cosponsors
Last activity — Referred to the House Committee on Ways and Means.
In committee
Introduced and handed to a committee in the chamber it started in.
The committee holds it, and most bills are never heard from again. A hearing or a committee vote would be news; silence is the usual outcome, and it kills the bill without anyone voting against it.
Its path through Congress
- Introduced
- In Committee
What this bill would do
The Magnets Value Chain Support Act of 2026 aims to amend the Internal Revenue Code to incentivize the domestic production and use of permanent magnets. This bill seeks to reduce strategic dependence on foreign sources, specifically the People's Republic of China, for magnet metals and permanent magnets. It establishes a "Magnet Value Chain Support Credit" for the production of rare earth oxides, magnet metals, and various types of permanent magnets. Additionally, it creates a "Domestic Magnet Input Usage Credit" for manufacturers of certain covered products that use these domestic magnets. The legislation includes specific requirements regarding domestic production capacity and the exclusion of materials from prohibited foreign entities.
Yes· 3 of 8
- Scored +5
Is this likely to create jobs?
The tax credits for domestic production are designed to incentivize the growth of the magnet manufacturing industry.
- Scored +5
Would business owners be better off under this?
The bill provides direct financial incentives through tax credits to manufacturers and producers.
- Scored +4
Is this likely to grow the economy?
The bill incentivizes domestic industrial capacity and supply chain resilience.
The opposite
No question was scored the opposite.
Who it would affect, and how
Potential Positive Impacts for People
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Incentivizing Domestic Production: The bill provides tax credits for the production of rare earth oxides, magnet metals, and various types of permanent magnets to encourage reshoring the supply chain (Section 3(a)).
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Support for High-Performance Magnets: Taxpayers can receive higher credit amounts, up to $40 per kilogram, for producing advanced high-performance permanent magnets that meet specific domestic input thresholds (Section 3(a)(b)(1)(B)).
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Encouraging Use of Domestic Materials: Manufacturers of "covered products," such as motors, generators, and defense applications, can claim a credit of up to 15 percent for using qualified domestic magnets (Section s 4(a) and 4(b)).
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Strengthening National Security: The bill aims to strengthen the domestic industrial base and reduce reliance on foreign sources for essential items used in national defense systems (Section 2).
Potential Negative Impacts for People
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Production Capacity Burdens: To be an eligible taxpayer for the permanent magnet production credit, companies may need to maintain at least 3 percent of their annual domestic production capacity as available and unencumbered (Section 3(a)(b)(1)(C)).
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Restrictions on Material Sourcing: Taxpayers are prohibited from claiming credits if the materials are sourced from or manufactured by a prohibited foreign entity (Section 3(d)(3) and Section 4(g)).
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Exclusion of Certain Products: The domestic magnet input usage credit does not apply to low-power consumer appliances or disposable devices, such as toasters, blenders, or toys (Section 4(e)(1)(A)).
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Credit Limitations and Restrictions: The bill includes rules to prevent the "double benefit" of claiming credits under this section and section 45X simultaneously (Section 3(d)(2)).
Groups and Interests Ranking
Every group the model scored this bill for, from -10 to +10. Tap or hover a score for the reason it gave.
- Economy And Finance
- Is this likely to create jobs? — The tax credits for domestic production are designed to incentivize the growth of the magnet manufacturing industry. Is this likely to grow the economy? — The bill incentivizes domestic industrial capacity and supply chain resilience. Does this cut taxes for small businesses? — The bill provides new tax credits for manufacturers of covered products using domestic magnets. Does this make it easier to run a small business? — The credits may benefit manufacturers of industrial and defense components regardless of company size.
- Demographic And Interest Groups
- Would business owners be better off under this? — The bill provides direct financial incentives through tax credits to manufacturers and producers.
- Education And Technology
- Does this put more money into scientific research? — The bill supports advanced technological manufacturing of high-performance permanent magnets.
- Environment Energy And Infrastructure
- Does this better protect air, water and wildlife? — Domestic production may reduce the environmental impact of long-distance global shipping for rare earth materials.
- National Security And Foreign Policy
- Does this increase the pay, pensions or support veterans receive? — The bill strengthens the defense industrial base which supports the broader national security infrastructure.
- 6/24/2026
- 1 Cosponsor added.
- 6/9/2026
- Referred to the House Committee on Ways and Means.
- 1 Cosponsor added.
- Introduced in House
Ro KhannaDemocrat · California
Raja KrishnamoorthiDemocrat · Illinois