S.Amdt. 2320

SA 2320. Mrs. BLACKBURN submitted an amendment intended to be
proposed to amendment SA 2137 proposed by Mr. Schumer (for Ms. Sinema
(for herself, Mr. Portman, Mr. Manchin, Mr. Cassidy, Mrs. Shaheen, Ms.
Collins, Mr. Tester, Ms. Murkowski, Mr. Warner, and Mr. Romney)) to the
bill H.R. 3684, to authorize funds for Federal-aid highways, highway
safety programs, and transit programs, and for other purposes; which
was ordered to lie on the table; as follows:

At the end of title VI of division H, add the following:

SEC. 806__. ADDITIONAL DEDUCTION FOR COST OF CERTAIN
MATERIALS PURCHASED DIRECTLY FROM A DOMESTIC
SMELTER OR PROCESSOR.

(a) Findings.--Congress finds the following:
(1) It is in America's best interest to ensure a robust and
secure domestic supply chain for U.S. manufacturers.
(2) The United States' increasing reliance on foreign
sources of metals and minerals threatens our economic and
national security while providing our geopolitical rivals,
such as China and Russia, leverage over our economy.
(3) Incentivizing domestic mineral and metal production and
the purchase of these materials will make our nation's supply
chains more secure and resilient.
(b) Deduction.--Part VI of subchapter B of chapter 1 of the
Internal Revenue Code of 1986 is amended by inserting after
section 181 the following new section:

``SEC. 182. ADDITIONAL DEDUCTION FOR COST OF CERTAIN
MATERIALS PURCHASED DIRECTLY FROM A DOMESTIC
SMELTER OR PROCESSOR.

``(a) In General.--There shall be allowed as a deduction
(in addition to any other deduction allowed under this
chapter for the cost of specified domestically-produced
materials) an amount equal to 10 percent of the cost of
specified domestically-produced materials if such materials
are acquired by the taxpayer directly from the domestic
smelter or processor of such material.
``(b) Specified Domestically-produced Materials.--For
purposes of this section--
``(1) In general.--The term `specified domestically-
produced materials' means any of the following:
``(A) Any specified material which is a mine product that
is smelted or processed in the United States.
``(B) Any specified material which is a mine tailings
product which is beneficiated in the United States.
``(C) Any specified material which is metal or metal
compound production which is--
``(i) reprocessed from slags or residues in the United
States, or
``(ii) melted, sputtered, or otherwise produced in the
United States.
``(D) Any specified material which is an alloy produced by
melting together metals in the United States.
``(E) Any specified material which is a magnet which is
sintered or bonded and magnetized in the United States.
``(2) Specified material.--
``(A) In general.--The term `specified material' means
minerals that are necessary--
``(i) for the national defense and national security
requirements,
``(ii) for the energy infrastructure of the United States,
including--

``(I) pipelines,
``(II) refining capacity,
``(III) electrical power generation and transmission, and
``(IV) renewable energy production,

``(iii) for community resiliency, coastal restoration, and
ecological sustainability for the coastal United States,
``(iv) to support domestic manufacturing, agriculture,
housing, telecommunications, healthcare, and transportation
infrastructure, or
``(v) for the economic security of, and balance of trade
in, the United States.
``(B) Exceptions.--Such term shall not include--
``(i) fuel minerals, including oil, natural gas, or any
other fossil fuels,
``(ii) water, ice, or snow, or
``(iii) sand, stone, gravel, pumice, pumicite, cinders, or
clay.
``(c) Domestic Smelter or Processor.--For purposes of this
section, the term `domestic smelter or processor' means--
``(1) in the case of specified domestically-produced
materials described in subsection (b)(1)(A), a person in the
trade or business of smelting or processing such material,
``(2) in the case of specified domestically-produced
materials described in subsection (b)(1)(B), a person in the
trade or business of beneficiating such material,
``(3) in the case of specified domestically-produced
materials described in subsection (b)(1)(C)(i), a person in
the trade or business of reprocessing such material,
``(4) in the case of specified domestically-produced
materials described in subsection (b)(1)(C)(ii), a person in
the trade or business of melting, sputtering, or producing by
melting together such materials,
``(5) in the case of specified domestically-produced
materials described in subsection (b)(1)(D), a person in the
trade or business of producing such material, and
``(6) in the case of specified domestically-produced
materials described in subsection (b)(1)(E), a person in the
trade or business of sintering or bonding such materials.''.
(c) Clerical Amendment.--The table of sections for part VI
of subchapter B of chapter 1 of such Code is amended by
inserting after the item relating to section 181 the
following new item:

``Sec. 182. Additional deduction for cost of certain materials
purchased directly from a domestic smelter or
processor.''.
(d) Effective Date.--The amendments made by this section
shall apply to taxable years beginning after the date of the
enactment of this Act.
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