Charleston, WV – Today, Senator Joe Manchin (D-WV), Chairman of the U.S. Senate Energy and Natural Resources Committee, joined his Senate colleagues in a letter to U.S Department of the Treasury Secretary Janet Yellen, urging the Administration to abide by Congressional intent and allow critical mineral mining and processing activities to be included in the calculation of the 45X Advanced Manufacturing Production tax credit passed in the Inflation Reduction Act. This tax credit is meant to support the domestic extraction and production of critical minerals and materials, as well as the manufacturing of batteries and their components, but Treasury, contrary to law, proposed a rule that would exclude domestic mining and certain minerals processing costs from being counted toward the credit, disincentivizing the onshoring of these activities that are critical to securing supply chains and reducing reliance on China.
“The clear purpose of section 45X was to encourage investment in the United States and to build a reliable and resilient domestic supply chain for critical minerals right here at home. The section 45X credit was designed to support responsible domestic mining and processing of these minerals. As members of the U.S. Senate we want to clarify that the blanket exclusion of materials costs is not consistent with the intent of Congress and should be expeditiously revised,” the Senator wrote in part.
“Private companies are ready and willing to invest in extraction and production of raw materials right here in the United States, and do so in a safe and responsible manner through developed environmental protection and labor standards. However, by excluding the majority of the production costs from the 45X credit, Treasury would disincentivize investment in the United States, and also increase our reliance on countries that do not share our democratic or geopolitical values,” said the Senators.
The letter is signed by Senators Catherine Cortez Masto (D-NV), John Hickenlooper (D-CO), Jacky Rosen (D-NV), Mark Kelly (D-AZ), Laphonza Butler (D-CA), Kyrsten Sinema (I-AZ), Bob Casey (D-PA), and Patty Murray (D-WA)