U.S. senator pushes rare earths funding bill
2020-05-13 14:43:07 [Print]
U.S. Senator Ted Cruz introduced legislation on Tuesday to help revive the U.S. rare earths industry with tax breaks for mine developers and manufacturers who buy their products, the latest attempt by Washington to break China's control over the strategic sector.
Cruz's legislation, if approved, would let mining companies deduct from their tax bill the costs of building rare earths mines, processing facilities and equipment purchases.
It would also let electronics manufacturers deduct 200 percent of the cost of U.S. rare earth products, including magnets, a measure designed to entice companies to buy fewer of the strategic minerals from China and more from the United States.
The bill would also require the Pentagon to use U.S.-derived rare earth products in all weaponry.
Cruz's legislation introduced on Tuesday also would provide $50 million in grants for rare earth pilot projects, with roughly a third allocated for minerals recycling from old mine waste, among other sources.
Cruz's legislation, if approved, would let mining companies deduct from their tax bill the costs of building rare earths mines, processing facilities and equipment purchases.
It would also let electronics manufacturers deduct 200 percent of the cost of U.S. rare earth products, including magnets, a measure designed to entice companies to buy fewer of the strategic minerals from China and more from the United States.
The bill would also require the Pentagon to use U.S.-derived rare earth products in all weaponry.
Cruz's legislation introduced on Tuesday also would provide $50 million in grants for rare earth pilot projects, with roughly a third allocated for minerals recycling from old mine waste, among other sources.
