Expansion and improvement of advance manufacturing production tax credit

(a) Inclusion of additional critical minerals (1) In general Section 45X(c)(6) of the Internal Revenue Code of 1986 is amended— (A) in subparagraph (AA), by inserting after clause (xxv) the following new clauses: (xxvi) Boron. (xxvii) Copper. (xxviii) Lead. (xxix) Potash. (xxx) Rhenium. (xxxi) Silicon. (xxxii) Silver. (xxxiii) Uranium., and (B) by adding at the end the following new subparagraph: (BB) Phosphate Phosphate which is— (i) converted to— (I) phosphoric acid, or (II) phosphorus with a minimum purity of 99 percent phosphorus by mass, or (ii) phosphate rock purified to a minimum purity of 20 percent phosphorus pentoxide by mass suitable for use in the production of phosphoric acid.. (2) Effective date The amendments made by this subsection shall apply to minerals produced and sold after December 31, 2025. (b) Inclusion of ore extraction costs in advanced manufacturing production credit (1) In general Section 45X(d) of the Internal Revenue Code of 1986 is amended— (A) by redesignating the second paragraph (4), as added by section 70514(c)(2) of Public Law 119–21, as paragraph (5), and (B) by adding at the end the following new paragraph: (6) Extraction costs for critical minerals (A) In general In the case of a taxpayer that extracts ore that is subsequently refined into an applicable critical mineral, costs incurred by the taxpayer with respect to such extraction shall be treated as costs described in subsection (b)(1)(M) for purposes of this section if such taxpayer submits to the Secretary a certification from the refiner of such ore that— (i) such ore has been refined into an applicable critical mineral, and (ii) such refiner sold the applicable critical mineral to an unrelated person (as determined pursuant to subsection (a)(3)) and such sale occurred in a trade or business of the refiner. (B) Certain foreign ore not eligible The cost of extracting ore shall be taken into account under subparagraph (A) only if— (i) such ore was extracted in the United States, or (ii) in the case of ore extracted outside of the United States— (I) the ore is of a type not extracted in the United States in commercial quantities, and (II) the ore was not extracted in a foreign country of concern (as defined in section 10612(a)(1) of the Research and Development, Competition, and Innovation Act (42 U.S.C. 19221(a)(1))). (C) Regulations preventing double benefit The Secretary shall issue such regulations or guidance as may be necessary or appropriate to ensure that no costs which are treated as costs described in subsection (b)(1)(M) by reason of subparagraph (A) are included, directly or indirectly, in the costs of production of any applicable critical mineral by any taxpayer except as provided by such subparagraph.. (2) Effective date The amendments made by this subsection shall apply to costs incurred after December 31, 2025. (c) Repeal of reduction in credit amount for metallurgical coal (1) In general Section 45X(b)(1)(M) of the Internal Revenue Code of 1986 is amended by striking (2.5 percent in the case of metallurgical coal). (2) Effective date The amendment made by this subsection shall apply to minerals produced and sold after December 31, 2025.