Bill > S4033

This bill, titled the "Critical Minerals Investment Tax Modernization Act of 2026," amends the Internal Revenue Code of 1986 to adjust the percentage depletion rate for certain rare earth elements. Specifically, it inserts language to include "rare earths (in this subparagraph defined as the 15 lanthanide elements), scandium" into a provision that already allows for a 22 percent depletion rate for certain minerals, meaning that companies extracting these specific rare earth elements will now be eligible for this tax deduction. This change is intended to incentivize the domestic production of these critical minerals and will take effect for taxable years beginning after the bill is enacted into law. Percentage depletion is a tax deduction that allows owners of natural resources to deduct a percentage of the gross income from the sale of those resources, representing the depletion of the resource over time.