Critical Minerals Investment Tax Modernization Act of 2026

This bill, titled the Critical Minerals Investment Tax Modernization Act of 2026, changes how mining companies calculate tax deductions for extracting rare earth minerals. It directly affects businesses that mine rare earth elements by increasing their allowable percentage depletion rate from the current standard to 22 percent. The specific minerals covered include the 15 lanthanide elements and scandium, which are now added to the list of resources eligible for this higher tax deduction. The change applies to taxable years beginning after the bill is enacted, allowing companies to deduct a larger portion of their mining costs from their taxable income.