Critical Mineral and Extraction Tax Parity Act

This bill amends the Internal Revenue Code to expand and improve the advanced manufacturing production tax credit. It adds new critical minerals to the list of eligible minerals, includes ore extraction costs in the credit calculation, and removes a reduced credit rate for metallurgical coal.

Sec. 2, Expansion and improvement of advanced manufacturing production tax credit: This section makes three changes. First, it adds boron, copper, lead, metallurgical coal, potash, rhenium, silicon, silver, uranium, and phosphate (under specific purity or conversion conditions) to the list of critical minerals eligible for the credit, effective for minerals produced and sold after December 31, 2025. Second, it allows taxpayers who extract ore that is later refined into an applicable critical mineral to treat their extraction costs as part of the credit's production costs, provided the refiner certifies the ore was refined and sold to an unrelated person. This applies only to ore extracted in the United States, or to foreign ore not extracted in a foreign country of concern if the ore type is not commercially extracted in the U.S., effective for amounts paid or incurred after December 31, 2025. Third, it removes the provision that limited the credit for metallurgical coal to 2.5 percent, effective for minerals produced and sold after December 31, 2025.