US Magnet Production Tax Breaks Proposed by House China Panel

The leaders of the House Select Committee on China are proposing a new slate of tax breaks for American producers of magnets to shore up US manufacturing and counter Beijing’s dominance in the rare earth global supply chain.

The Magnets Value Chain Support Act, co-sponsored by Reps. John Moolenaar (R-Mich.) and Ro Khanna (D-Calif.), would create a tiered tax break for the production of magnet metal, permanent magnet, and rare-earth oxide. Any magnet manufacturer who would receive the tax break must reserve a portion of its production capacity for US defense needs. ...