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 credit, includes ore extraction costs as eligible production costs, 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, potash, rhenium, silicon, silver, uranium, and phosphate (with specific purity and conversion requirements) 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 eligible production costs, provided the refiner certifies the ore was refined and sold to an unrelated party. This applies only to ore extracted in the United States, or to ore not commercially extracted in the U.S. and not from a foreign country of concern, effective for costs incurred after December 31, 2025. Third, it removes the provision that limited the credit to 2.5 percent for metallurgical coal, effective for minerals produced and sold after December 31, 2025.