Nebraska U.S. Rep. Adrian Smith Proposes Bigger Tax Breaks For Mining Rare Earth Elements

LINCOLN – Nebraska Republican U.S. Rep. Adrian Smith is proposing additional tax relief aimed at increasing American production of minerals used in electronics, including microchips.

The legislation aims to increase the “depletion allowance” for producers of rare earth materials and scandium from 14% to match the tax break enjoyed by producers of minerals deemed the “highest-priority,” which is 22%.

The “depletion allowance” is a tax break that allows companies that mine the materials to “recover a percentage of gross income.”

Smith, a senior member of the House’s tax-writing Weighs and Means Committee, represents Nebraska’s largely rural 3rd Congressional District. He introduced the measure along with California Democratic Rep. Jimmy Panetta and Pennsylvania Republican Rep. Guy Reschen