Critical Mineral and Extraction Tax Parity Act

Expansion of Tax Credit Coverage: By adding minerals like Boron, Copper, Lead, Potals, Rhenium, Silicon, Silver, and Uranium to the code, more minerals can qualify for the production tax credit (Section 2(a)(1)).

Benefits for Phosphate Production: The bill provides a path for phosphate to be included in the tax credit if it is converted into phosphoric acid, high-purity phosphorus, or specific types of purified phosphate rock (Section 2(a)(1)(B)).

Incentives for Ore Extraction: Taxpayers who extract ore that is later refined into a critical mineral may be able to treat extraction costs as eligible costs for the credit, provided certain certification and sale requirements are met (Section 2(b)(1)(A)).

Support for Domestic and Specific Foreign Extraction: The bill allows extraction costs to be considered if the ore was extracted in the United States or if certain foreign ore meets specific criteria regarding commercial availability and origin (Section 2(b)(1)(B)).

Increased Credit for Coal: The act removes a reduction in the credit amount that previously applied to metallurgical coal (Section 2(c)(1)).

Regulatory Oversight Requirements: Taxpayers seeking to include extraction costs must submit certifications to the Secretary to prove the ore was refined and sold appropriately (Section 2(b)(1)(A)).

Restrictions on Foreign Ore: Extraction costs for ore mined outside the United States may not be eligible if the ore is of a type already extracted in the U.S. in commercial quantities or if it comes from a foreign country of concern (Section 2(b)(1)(B)).

Prevention of Double Benefits: The Secretary will issue regulations to ensure that extraction costs are not counted more than once, which may act as a restriction on how costs are reported (Section 2(b)(1)(C)).