H.R. 4772 — Critical Minerals Investment Tax Modernization Act of 2025

This section expands the minerals eligible for the 22% percentage depletion rate under IRC §613(b)(1)(B) to include rare earths (defined as the 15 lanthanide elements) and scandium (previously eligible only for the 14% rate applicable to most other minerals). (Percentage depletion permits taxpayers to deduct a specified percentage of gross income from mineral production in lieu of cost depletion.) The change applies to taxable years beginning after the date of enactment.