Tax Benefits for Magnets Made in USA

by | 16. Aug 2021 - 11:07 | Technologies

New bill aims to boost production of permanent magnets in the United States

A bill was introduced to the U.S. House of Representatives this week that would provide tax benefits for companies that produce rare earth magnets in the United States. It is more important than ever that the United States secure all the necessary components of the supply chain, news agency Reuters quotes Representative Eric Swalwell (Democrat) as saying. He has introduced the Rare Earth Magnet Manufacturing Production Tax Credit Act together with Guy Reschenthaler (Republican). It provides for a tax credit of $20 per kilogram for neodymium-iron-boron magnets manufactured in the United States. It increases to $30 if raw materials from U.S. mines are used for production.

China currently dominates the market, and the U.S. also currently lacks processing facilities for locally mined raw materials such as neodymium or praseodymium.

Photo: iStock/YayaErnst