Critical Minerals Investment Tax Modernization Act of 2025
Summary
What This Bill Does
The Critical Minerals Investment Tax Modernization Act makes a targeted tax change for rare earth mineral production. It amends Internal Revenue Code section 613(b)(1)(B), the percentage-depletion provision for specified minerals, by inserting rare earths and scandium before tantalum. The bill defines rare earths for this purpose as the 15 lanthanide elements. The amendment applies to taxable years beginning after the date of enactment. Its practical effect is to let qualifying producers of lanthanide rare earths and scandium use the percentage depletion treatment available to the minerals in that subparagraph, increasing after-tax value of domestic production if taxpayers have qualifying income.
Who Benefits and How
Rare earth mining companies benefit from access to percentage depletion for the 15 lanthanide elements. Scandium producers benefit from being added to the same percentage-depletion category. Critical mineral investors benefit if the tax treatment improves project economics for domestic extraction. Manufacturers relying on rare earth supply chains benefit indirectly if the tax change supports domestic production.
Who Bears the Burden and How
Treasury Secretary and IRS must administer the amended percentage depletion category. Federal taxpayers bear the revenue cost of expanded depletion deductions. Competing mineral producers not added by the bill do not receive the same tax preference. Environmental regulators may see increased project pressure if the tax benefit encourages extraction.
Key Provisions
- Adds rare earths to Internal Revenue Code section 613(b)(1)(B).
- Defines rare earths as the 15 lanthanide elements.
- Adds scandium before tantalum in the percentage depletion mineral list.
- Applies the amendment to taxable years beginning after enactment.
Evidence Chain:
This summary is generated from the full bill text using AI analysis. Expand "Detailed Analysis" below for identified beneficiaries/burden bearers with clause-level evidence links.
At a Glance
What This Bill Does
Adds rare earths, defined as the 15 lanthanide elements, and scandium to the Internal Revenue Code percentage depletion category that already includes listed critical minerals, effective for taxable years beginning after enactment.
Key Policy Areas
Tax, Mining, Critical Minerals
Primary Purpose
Adds rare earths, defined as the 15 lanthanide elements, and scandium to the Internal Revenue Code percentage depletion category that already includes listed critical minerals, effective for taxable years beginning after enactment.
Policy Domains
Resolution provisions
Identified Gains
- Rare earth mining companies
- Scandium producers
- Critical mineral investors
- Manufacturers using rare earths
Identified Costs
- Treasury Secretary
- IRS administrators
- Federal taxpayers
- Environmental regulators
Sponsors
Legislative Progress
In CommitteeIntroduced in House
Mr. Smith of Nebraska (for himself, Mr. Panetta, and Mr. …
Referred to the House Committee on Ways and Means.
Stakeholder Effects
cui bono?How this legislation distributes effects. Mention counts reflect frequency, not effect magnitude.
Critical mineral investors, Rare earth mining companies, Scandium producers
Bill Structure & Actor Mappings
Who is "The Secretary" in each section?
We use a combination of our own taxonomy and classification in addition to large language models to assess meaning and potential beneficiaries. High confidence means strong textual evidence. Always verify with the original bill text.
Learn more about our methodology