Fusion Advanced Manufacturing Parity Act

This bill amends the Internal Revenue Code to include fusion energy components in the advanced manufacturing production credit, providing a tax credit for their production and sale.

Sec. 2, Inclusion of fusion energy components in advanced manufacturing production credit: The bill adds fusion energy components to the list of eligible technologies under Section 45X of the tax code. For these components, the credit equals 25 percent of the sales price. The credit phases out for components sold after 2031: 75 percent of the full credit in 2032, 50 percent in 2033, 25 percent in 2034, and zero after 2034. The bill defines "fusion energy component" to include 20 specific items such as high-temperature superconducting magnets, fusion chambers, blanket systems, high-temperature superconductor tape or wire, high-energy lasers, fusion heating systems, high-voltage capacitors, films used in high-voltage capacitors, plasma compression systems, high-power switches, packaging used in high-power switches, high-voltage conductors and insulators, composite materials used in vacuum vessels, fused quartz parts and ceramics used in vacuum vessels, plasma formation devices, fuel processing and storage components, cooling system components, fusion targets, dielectric fluids and systems, and controls equipment. It also defines related terms like "fusion energy machine" and provides detailed definitions for each component. Additionally, the bill expands the list of eligible critical minerals in the credit to include boron, copper chromium zirconium, and adds deuterium, helium-3, and tritium as eligible critical minerals. It also updates a cross-reference in another section of the tax code. These changes apply to components produced and sold after December 31, 2025.