Great Win For Tester: Mining tax credit (cross posting from GD)

[question everything]

https://www.democraticunderground.com/100219606461

US Treasury allows miners to access clean energy manufacturing subsidy

Oct 24 (Reuters) - The U.S. Treasury Department said on Thursday it would allow some mining companies to access a tax credit aimed at boosting American production of solar panels, lithium-ion batteries and other clean energy components, a shift in position after industry pressure.

The move reflects the growing realization in Washington that efforts to combat climate change will be moot unless the U.S. boosts its production of lithium, cobalt, and other critical minerals and curbs reliance on China and other overseas rivals. Washington last December issued proposed rules for manufacturers to access the so-called 45X tax credit, created by President Joe Biden's 2022 climate change law, the Inflation Reduction Act, which offers a 10% production credit for U.S.-made products.

Those draft rules excluded raw materials from the production costs in favor of processing. For example, the mining of lithium would not have received the credit, but the processing of that lithium into a form usable to build a battery would. The mining industry cried foul, noting that processing is impossible without first extracting a mineral.

Citing "feedback from stakeholders," the Treasury Department on Thursday reversed itself, saying that the "material costs and extraction costs" would be eligible for the tax credit under the final 45X rules, "provided certain conditions are met."

"The Biden-Harris administration understands how important onshoring the production of critical minerals is to developing secure, clean energy supply chains," Wally Adeyemo, the deputy Treasury secretary, told reporters on a call.

https://www.reuters.com/business/energy/us-treasury-allows-miners-access-clean-energy-manufacturing-subsidy-2024-10-24/

Celebrated by Senator Tester

https://www.tester.senate.gov/newsroom/press-releases/

Following Pressure from Tester, Biden Administration Will Apply Tax Credit to American Mining to Help Workers at Sibanye-Stillwater