Magnets Value Chain Support Act of 2026

The Magnets Value Chain Support Act of 2026 establishes a series of tax credits to encourage the production of magnets and related materials within the United States and to promote their use in critical industries. This legislation directly affects manufacturers of permanent magnets, magnet metals, and rare earth oxides, as well as companies that incorporate these materials into motors, generators, robotics, and defense systems. The bill creates three specific production credits that provide financial incentives based on the percentage of domestic content and the performance level of the magnets produced, while also offering a separate credit for businesses purchasing high-performance magnets made in the United States. To qualify for these benefits, producers must ensure that their materials are not sourced from prohibited foreign entities and must maintain certain domestic production capacities. The act includes strict reporting requirements to track supply chain origins and limits the credits to specific strategic applications, excluding low-power consumer goods.