The specific critical minerals required for the tax credit under the Inflation Reduction Act (IRA), including the Section 45X Advanced Manufacturing Production Credit, cover a list of 50 designated critical minerals. This credit provides a 10% tax credit on the production costs related to these minerals. The minerals include those essential for various clean energy technologies, batteries, and advanced manufacturing.
Key points about the critical minerals for the tax credit:
- The tax credit applies to both the mining (extraction) and processing (production) costs of these 50 critical minerals, following recent Treasury rules that expanded the incentive to include extraction costs, not just processing.
- The list of eligible minerals is specified in the legislation tied to the IRA but broadly encompasses elements critical for clean energy supply chains, such as those used in batteries, solar panels, wind turbines, and other advanced manufacturing materials.
- The credit is permanent for critical minerals (unlike other credits that phase out), providing ongoing incentives for domestic production and mining.
While the exact 50 minerals are defined in the legislative text itself, the context makes clear the credit targets minerals vital to the domestic clean energy push. These commonly include lithium, cobalt, nickel, graphite, rare earth elements, and others essential to battery technologies and renewable infrastructure.
In summary, the critical minerals required for the tax credit are the 50 minerals enumerated in the IRA legislation, covering those used in batteries, clean energy technologies, and advanced manufacturing, with tax credits available for both their mining and processing within the U.S.
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