To amend the Internal Revenue Code of 1986 to incentivize the domestic production and use of permanent magnets, and for other purposes.

On June 9, 2026, Representative John Moolenaar (R-MI) introduced HR9227, a bill to amend the Internal Revenue Code to incentivize domestic production and use of permanent magnets. The bill was referred to the House Committee on Ways and Means, the primary tax-writing committee. With only one cosponsor and no committee hearings or markups, the bill is at the earliest stage of the legislative process.

The bill does not authorize or appropriate any specific dollar amount. Instead, it proposes a tax credit mechanism to reduce the cost of domestic magnet manufacturing. Actual fiscal impact would depend on the credit rate and eligibility criteria, which are not detailed in the available data. The money trail would flow through the IRS as reduced tax liabilities for qualifying manufacturers, not through direct government spending.

Structural winners include companies with existing US rare earth processing and magnet production capabilities. MP Materials ($MP) is the most direct beneficiary, as it operates the only scaled US rare earth processing facility and is building a downstream magnet plant. Other potential beneficiaries include companies in the rare earth supply chain like VALE ($VALE) for nickel/cobalt inputs, though the link is weaker. The bill does not directly affect major defense contractors or technology companies, as it focuses on tax incentives rather than procurement mandates.

No real market data was provided for price analysis. The competitive landscape for permanent magnets is dominated by Chinese producers; this bill signals US policy intent to onshore production but has no near-term market impact.

Legislative timeline: The bill must pass the House Ways and Means Committee, then the full House, then the Senate, and be signed by the President. Given the early stage and lack of cosponsors, passage in the 119th Congress is uncertain and likely years away.