[Congressional Record Volume 167, Number 88 (Thursday, May 20, 2021)]
[Senate]
[Pages S3294-S3295]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

  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.
                                 ______