Rare Earth Magnet Manufacturing Production Tax Credit Act of 2023

This bill creates a tax credit for U.S. manufacturers producing rare earth magnets, offering $20 per kilogram for magnets made with domestically sourced materials and $30 per kilogram if at least 90% of component materials (like neodymium, dysprosium, or cobalt) are also produced in the U.S. The credit phases out after 2032, reducing to 70% in 2033, 35% in 2034-2035, and ending after 2035. It prohibits credits for magnets using materials from "non-allied foreign nations" and requires production to occur within a regular business operation. The credit applies to taxable years beginning after December 31, 2023.