ACS endorses tax credit to spur rare earth magnet manufacturing
August 10, 2021
The Honorable Eric Swalwell
407 Cannon House Office Building
United States House of Representatives
Washington, DC 20515
Dear Representative Swalwell:
On behalf of the American Chemical Society (ACS), I am pleased to endorse the Rare Earth Magnet Manufacturing Production Tax Credit Act. As you may know, the ACS represents 155,000 chemists and chemical engineers and was chartered by Congress in 1937 to provide scientific and policy advice to society and policy makers.
ACS believes U.S. critical materials policy should develop primary sources and downstream processing capability in an environmentally sustainable fashion. The Act would accomplish this goal by offering a tax credit for the domestic production of rare earth magnets and the material components of the magnets. ACS also supports fostering domestic rare earth production to build and maintain a knowledgeable domestic workforce, an important secondary goal of the legislation.
Ensuring a robust and sustainable supply of critical materials is central to assuring the strength of the U.S. research enterprise, national security, and economic growth. Many of the rare earth elements will be vital in the transition to a low carbon emission economy. The U.S. will continue to grapple with unequal global allocations of certain elements, as well as the safety and environmental hazards associated with extraction and processing. By encouraging domestic manufacturing, this act would allow the US to better meet these challenges.
Ultimately, chemistry is central to guaranteeing the building blocks of our current and future economy, and I commend your leadership in this area. Should you have any additional questions, please feel free to contact me or Will Hartwig.
Government Affairs, Outreach & Alliances