Washington’s twin magnet push: bipartisan bill sets tax credits, House codifies allied minerals diplomacy

On June 8^th, the House passed H.R. 7037, the DOMINANCE Act, giving statutory backing to America’s allied critical-minerals architecture; on June 9^th Reps. John Moolenaar (R-MI) and Ro Khanna (D-CA) introduced H.R. 9227, the Magnets Value Chain Support Act of 2026 – the first federal incentive framework spanning the permanent magnet chain from oxide processing to OEMs.

The bill creates a Section 45BB production credit tiered by domestic content: $5/kg for oxide sold into eligible downstream steps; $15/kg for magnet metal at 75% U.S. or partner-country inputs, rising to $25/kg at 90%-plus U.S.-produced; NdFeB magnets $20/kg and $30/kg at the same thresholds; advanced high-performance grades $33/kg and $40/kg. Rare earth-free magnets meeting performance floors – 2 kOe coercivity at 150°C, 0.8 Tesla remanence – qualify at $20/kg, bringing iron nitride into federal eligibility for the first time.