Inflation Reduction Act 2022: Sec. 13502 Advanced Manufacturing Production Credit
The Inflation Reduction Act (IRA) of 2022, which seeks to reduce domestic inflation – notably brought by the global energy crisis – whilst tackling climate change, establishes a New Advanced Manufacturing Production Credit to incentivise the domestic production of various components, including applicable critical minerals used in renewable energy generation, storage and related manufacturing.
Under the regulation, a tax credit equal to 10% of the cost of production is awarded to the producers of the following applicable critical minerals used in such manufacturing: aluminium, antimony, barite, beryllium, cerium, caesium, chromium, cobalt, dysprosium, europium, fluorspar, gadolinium, germanium, graphite, indium, lithium, manganese, neodymium, nickel, niobium, tellurium, tin, tungsten, vanadium, yttrium and others. Eligible minerals must be produced in the United States.
The credit for critical mineral production begins in 2023 and is exempted from the phaseout that is applied to other eligible components beginning in 2030.
Want to know more about this policy ? Learn more