The 10 per cent production relief was a component of the Biden-era Inflation Reduction Act. Unlike other incentives for clean technologies in that bill, tax credits for critical minerals were supposed to be permanent, to account for their importance in making semiconductors, drones and electric vehicles — as well as their lengthy start-up processes.
Now, access to credits will be wound down starting in 2031 and eliminated by 2034.
“It’s very cost inhibitive to do these projects here,” said Abigail Hunter, executive director of Safe’s Center for Critical Minerals Strategy, an advocacy group. “They need expertise, time, infrastructure and equipment — we’re not turnkey right now.”
Tax credits for electric vehicles, which use materials such as lithium, will also be cut by 2026.
Read the full article: “Trump budget reduces support for US minerals despite trade concerns.“
