[Congressional Record Volume 167, Number 138 (Tuesday, August 3, 2021)]
[Senate]
[Page S5737]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

  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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