Rare Earth Magnet Manufacturing Production Tax Credit Act of 2023

HR 2849 creates a tax credit for U.S. manufacturers producing rare earth magnets. The credit offers $20 per kilogram for magnets made with domestically sourced materials, or $30 per kilogram if at least 90% of the rare earth components are produced in the U.S. The credit phases out over time, reducing to 70% in 2033, 35% in 2034-2035, and ending after 2035. To qualify, manufacturers must not use materials from non-allied foreign nations and must produce magnets as part of their regular business operations.