S.Amdt. 1883

SA 1883. Mr. CRUZ submitted an amendment intended to be proposed to
amendment SA 1502 proposed by Mr. Schumer to the bill S. 1260, to
establish a new Directorate for Technology and Innovation in the
National Science Foundation, to establish a regional technology hub
program, to require a strategy and report on economic security,
science, research, innovation, manufacturing, and job creation, to
establish a critical supply chain resiliency program, and for other
purposes; which was ordered to lie on the table; as follows:

At the appropriate place, insert the following:

TITLE __--ONSHORING RARE EARTHS ACT

SEC. ___1. PERMANENT FULL EXPENSING FOR PROPERTY USED TO
EXTRACT CRITICAL MINERALS AND METALS WITHIN THE
UNITED STATES.

(a) In General.--Section 168(k) of the Internal Revenue
Code of 1986 is amended by adding at the end the following:
``(11) Special rule for property used in the extraction of
critical minerals and metals within the united states.--

[[Page S3295]]

``(A) In general.--In the case of any qualified property
which is directly involved in extracting critical minerals
and metals from deposits in the United States--
``(i) paragraph (2)(A)(iii) shall not apply, and
``(ii) the applicable percentage shall be 100 percent.
``(B) Critical minerals and metals.--For purposes of this
paragraph, the term `critical minerals and metals' means
cerium, cobalt, dysprosium, erbium, europium, gadolinium,
graphite, holmium, lanthanum, lithium, lutetium, manganese,
neodymium, praseodymium, promethium, samarium, scandium,
terbium, thulium, ytterbium, and yttrium.''.
(b) Effective Date.--The amendment made by this section
shall apply to property placed in service after December 31,
2020.

SEC. ___2. PERMANENT FULL EXPENSING FOR NONRESIDENTIAL REAL
PROPERTY USED IN THE EXTRACTION OF CRITICAL
MINERALS AND METALS WITHIN THE UNITED STATES.

(a) In General.--Section 168 of the Internal Revenue Code
of 1986 is amended by adding at the end the following new
subsection:
``(n) Special Allowance for Nonresidential Real Property
Used in the Extraction of Critical Minerals and Metals Within
the United States.--
``(1) New structures.--In the case of any qualified real
property--
``(A)(i) if such property is placed in service on or after
the date of enactment of this subsection, the depreciation
deduction provided by section 167(a) for the taxable year in
which such property is placed in service shall include an
allowance equal to 100 percent of the adjusted basis of such
property, or
``(ii) if such property was placed in service before the
date of enactment of this subsection, the depreciation
deduction provided by section 167(a) for the first taxable
year beginning after such date shall include an allowance
equal to 100 percent of the adjusted basis of such property,
and
``(B) the adjusted basis of such property shall be reduced
by the amount of such deduction before computing the amount
otherwise allowable as a depreciation deduction under this
chapter for such taxable year and any subsequent taxable
year.
``(2) Qualified real property.--For purposes of this
subsection, the term `qualified real property' means any
nonresidential real property which is directly involved in
extracting critical minerals and metals (as defined in
subsection (k)(11)(B)) from deposits in the United States.''.
(b) Effective Date.--The amendment made by this section
shall apply to taxable years beginning after December 31,
2020.

SEC. ___3. DEDUCTION FOR PURCHASE OF CRITICAL MINERALS AND
METALS EXTRACTED WITHIN THE UNITED STATES.

(a) In General.--Part VI of subchapter B of chapter 1 of
the Internal Revenue Code of 1986 is amended by inserting
after section 176 the following new section:

``SEC. 177. DEDUCTION FOR PURCHASE OF CRITICAL MINERALS AND
METALS EXTRACTED WITHIN THE UNITED STATES.

``(a) Allowance of Deduction.--There shall be allowed as a
deduction for the taxable year an amount equal to 200 percent
of the cost paid or incurred by the taxpayer for the purchase
or acquisition of critical minerals and metals (as defined in
section 168(k)(11)(B)) which have been extracted from
deposits in the United States.
``(b) Application With Other Deductions.--No deduction
shall be allowed under any other provision of this chapter
with respect to any expenditure with respect to which a
deduction is allowed or allowable under this section to the
taxpayer.''.
(b) Conforming Amendment.--The table of sections for part
VI of subchapter B of chapter 1 of the Internal Revenue Code
of 1986 is amended by inserting after the item relating to
section 176 the following new item:

``Sec. 177. Deduction for purchase of critical minerals and metals
extracted within the United States.''.

(c) Effective Date.--The amendments made by this section
shall apply to amounts paid or incurred after December 31,
2020.
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