Sec. 45X. Advanced Manufacturing Production Credit

Excerpted from the Inflation Reduction Act; basically LynasUSA would get a 10% credit based on cost of production -
most all benefits phase out by 2030, BUT NOT those for critical materials.

Editor's Note: Pub. L. 117-169, Sec. 13502, added Sec. 45X, below, effective for components produced and sold after December 31, 2022.

I.R.C. § 45X(a) In General

I.R.C. § 45X(a)(1) Allowance Of Credit —

For purposes of section 38, the advanced manufacturing production credit for any taxable year is an
amount equal to the sum of the credit amounts determined under subsection (b) with respect to each eligible component which is—

I.R.C. § 45X(a)(1)(A)

—

produced by the taxpayer, and

I.R.C. § 45X(a)(1)(B) —

during the taxable year, sold by such taxpayer to an unrelated person

......
I.R.C. § 45X(c) Definitions —

For purposes of this section—

I.R.C. § 45X(c)(1) Eligible Component

I.R.C. § 45X(c)(1)(A) In General —

The term “eligible component” means—

I.R.C. § 45X(c)(1)(A)(i) —

any solar energy component,

I.R.C. § 45X(c)(1)(A)(ii) —

any wind energy component,

I.R.C. § 45X(c)(1)(A)(iii) —

any inverter described in subparagraphs (B) through (G) of paragraph (2),

I.R.C. § 45X(c)(1)(A)(iv) —

any qualifying battery component, and

I.R.C. § 45X(c)(1)(A)(v) —

any applicable critical mineral.

....
I.R.C. § 45X(b) Credit Amount

I.R.C. § 45X(b)(1) In General —

Subject to paragraph (3), the amount determined under this subsection with respect to any eligible
component, including any eligible component it incorporates, shall be equal to—
...
I.R.C. § 45X(b)(1)(M) —

in the case of any applicable critical mineral, an amount equal to 10 percent of the costs incurred by
the taxpayer with respect to production of such mineral.

...

I.R.C. § 45X(c)(6) Applicable Critical Minerals —

The term “applicable critical mineral” means any of the following:

...
I.R.C. § 45X(c)(6)(E) Cerium —

Cerium which is—

I.R.C. § 45X(c)(6)(E)(i) —

converted to cerium oxide which is purified to a minimum purity of 99.9 percent cerium oxide by mass, or

I.R.C. § 45X(c)(6)(E)(ii) —

purified to a minimum purity of 99 percent cerium by mass.

...
I.R.C. § 45X(c)(6)(I) Dysprosium —

Dysprosium which is—

I.R.C. § 45X(c)(6)(I)(i) —

converted to not less than 99 percent pure dysprosium iron alloy by mass, or

I.R.C. § 45X(c)(6)(I)(ii) —

purified to a minimum purity of 99 percent dysprosium by mass.

...
I.R.C. § 45X(c)(6)(J) Europium —

Europium which is—

I.R.C. § 45X(c)(6)(J)(i) —

converted to europium oxide which is purified to a minimum purity of 99.9 percent europium oxide by mass,
or

I.R.C. § 45X(c)(6)(J)(ii) —

purified to a minimum purity of 99 percent by mass.

...
I.R.C. § 45X(c)(6)(R) Neodymium —

Neodymium which is—

I.R.C. § 45X(c)(6)(R)(i) —

converted to neodymium-praseodymium oxide which is purified to a minimum purity of 99 percent
neodymium-praseodymium oxide by mass,

I.R.C. § 45X(c)(6)(R)(ii) —

converted to neodymium oxide which is purified to a minimum purity of 99.5 percent
neodymium oxide by mass

I.R.C. § 45X(c)(6)(R)(iii) —

purified to a minimum purity of 99.9 percent neodymium by mass.

...
And just in case you think they missed one of the rare earths separately listed above:

I.R.C. § 45X(c)(6)(Y) Yttrium —

Yttrium which is—

I.R.C. § 45X(c)(6)(Y)(i) —

converted to yttrium oxide which is purified to a minimum purity of 99.999 percent yttrium oxide
by mass, or

I.R.C. § 45X(c)(6)(Y)(ii) —

purified to a minimum purity of 99.9 percent yttrium by mass.

I.R.C. § 45X(c)(6)(Z) Other Minerals —

Any of the following minerals, provided that such mineral is purified to a minimum
purity of 99 percent by mass:

I.R.C. § 45X(c)(6)(Z)(i) —

Arsenic.

I.R.C. § 45X(c)(6)(Z)(ii) —

Bismuth.

I.R.C. § 45X(c)(6)(Z)(iii) —

Erbium.

I.R.C. § 45X(c)(6)(Z)(iv) —

Gallium.

I.R.C. § 45X(c)(6)(Z)(v) —

Hafnium.

I.R.C. § 45X(c)(6)(Z)(vi) —

Holmium.

I.R.C. § 45X(c)(6)(Z)(vii) —

Iridium.

I.R.C. § 45X(c)(6)(Z)(viii) —

Lanthanum.

I.R.C. § 45X(c)(6)(Z)(ix) —

Lutetium.

I.R.C. § 45X(c)(6)(Z)(x) —

Magnesium.

I.R.C. § 45X(c)(6)(Z)(xi) —

Palladium.

I.R.C. § 45X(c)(6)(Z)(xii) —

Platinum.

I.R.C. § 45X(c)(6)(Z)(xiii) —

Praseodymium.

I.R.C. § 45X(c)(6)(Z)(xiv) —

Rhodium.

I.R.C. § 45X(c)(6)(Z)(xv) —

Rubidium.

I.R.C. § 45X(c)(6)(Z)(xvi) —

Ruthenium.

I.R.C. § 45X(c)(6)(Z)(xvii) —

Samarium.

I.R.C. § 45X(c)(6)(Z)(xviii) —

Scandium.

I.R.C. § 45X(c)(6)(Z)(xix) —

Tantalum.

I.R.C. § 45X(c)(6)(Z)(xx) —

Terbium.

I.R.C. § 45X(c)(6)(Z)(xxi) —

Thulium.

I.R.C. § 45X(c)(6)(Z)(xxii) —

Titanium.

I.R.C. § 45X(c)(6)(Z)(xxiiii) —

Ytterbium.

I.R.C. § 45X(c)(6)(Z)(xxiv) —

Zinc.

I.R.C. § 45X(c)(6)(Z)(xxv) —

Zirconium.

I.R.C. § 45X(b)(3) Phase Out

I.R.C. § 45X(b)(3)(A) In General —

Subject to subparagraph (C), in the case of any eligible component sold after December 31, 2029, the amount determined under this subsection with respect to such component shall be equal to the product of—

I.R.C. § 45X(b)(3)(A)(i) —

the amount determined under paragraph (1) with respect to such component, as determined without regard to this paragraph, multiplied by

I.R.C. § 45X(b)(3)(A)(ii) —

the phase out percentage under subparagraph (B).

I.R.C. § 45X(b)(3)(B) Phase Out Percentage —

The phase out percentage under this subparagraph is equal to—

I.R.C. § 45X(b)(3)(B)(i) —

in the case of an eligible component sold during calendar year 2030, 75 percent,

I.R.C. § 45X(b)(3)(B)(ii) —

in the case of an eligible component sold during calendar year 2031, 50 percent,

I.R.C. § 45X(b)(3)(B)(iii) —

in the case of an eligible component sold during calendar year 2032, 25 percent,

I.R.C. § 45X(b)(3)(B)(iv) —

in the case of an eligible component sold after December 31, 2032, 0 percent.

I.R.C. § 45X(b)(3)(C) Exception —

For purposes of determining the amount under this subsection with respect to any applicable critical mineral, this paragraph shall not apply.