H.R. 9227 — Magnets Value Chain Support Act of 2026

This section states congressional findings that the United States is strategically dependent on foreign sources, principally the People’s Republic of China, for magnet metals and permanent magnets used in electric motors, generators, robotics, industrial machinery, advanced electronics, and national defense systems. It further finds that domestic metallization and magnet-manufacturing capabilities have atrophied and require targeted market-oriented incentives to restore competitive production.

This section establishes the magnet value chain support credit under new section 45BB of the Internal Revenue Code. It provides $20–$40 per kilogram for qualified permanent magnets (rare earth-free, high-performance, or advanced high-performance), $15–$25 per kilogram for magnet metals, and $5 per kilogram for rare earth oxides, produced in the United States and sold to unrelated persons, with tiered rates based on 75–90 percent U.S. or partner-country content and no prohibited foreign entity inputs.

This section establishes a domestic magnet input usage tax credit equal to 15 percent of qualified expenditures on US-manufactured permanent magnets (declining to 10 percent for 2035–2036 and 5 percent for 2037–2038) used in covered powertrain and generation components for high-performance electronics, robotics, defense systems, and related applications. The credit applies to taxable years beginning after December 31, 2026, and terminates after December 31, 2038.