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Gulf Today
20 hours ago
- Business
- Gulf Today
Trump's tax-cut bill could hold back projects
US President Donald Trump's tax and spending bill would make it harder for American critical minerals companies to compete with China because it eliminates a tax credit for boosting domestic production of nickel, rare earths and other materials used in advanced electronics and weaponry, reported Reuters. With Trump and Republican lawmakers aiming to cut government support for green energy projects, the US House of Representatives passed a version of his "One Big Beautiful Bill Act" last month that eliminates the so-called 45X credit. The Senate is now debating the bill. Former President Joe Biden's 2022 climate change law, the Inflation Reduction Act, created the 10% production credit — a reduction in corporate taxes for critical minerals extraction and processing. The tax break also covers solar, battery and wind projects. The version of the bill that passed the House treats government incentives for wind turbines the same as those for mining projects that many view as crucial for national security. Critical minerals companies now say their projects are collateral damage to the political feud over renewable energy. The tax credit is already law and part of the current federal budget. The nonpartisan Congressional Budget Office, which scores the cost of legislative proposals when asked by Congress, has not studied how much would be saved by removing the credit. The Republican majority in Congress is seeking savings to fund other priorities such as tax cuts, defense and balancing the budget. This month, the hard-right House Freedom Caucus said it "will not accept" attempts to "water down, strip out, or walk back the hard-fought spending reductions and IRA Green New Scam rollbacks achieved in this legislation." Miners, though, say they need the credit to compete with China. Beijing has halted exports of some critical minerals, used its control of rare earths to strike a trade agreement with Washington, and flooded global markets with cheap supply of nickel, cobalt and lithium. The traditionally conservative mining industry now finds itself in the unusual position of needing Washington's support to grow and, in some cases, survive. The owner of the only US cobalt mine went bankrupt this year after Chinese miners depressed global prices of that metal. "If we do not have that tax credit, critical minerals producers in the U.S. are at risk of succumbing to closures," said KaLeigh Long, founder and CEO of Westwin Elements, which is building the country's only commercial nickel refinery. Westwin might not be able to service its debt without the tax credit, Long said, noting the company's loans were modeled using the expectation it would be permanent. Last month, Long wrote a letter asking the Senate to keep the credit. It was co-signed by 30 industry executives. Any changes the Senate makes to the bill must be reconciled with the House version before being sent to Trump, observed Reuters. Several House members have admitted they did not read the entire bill before voting for it, including Congresswoman Marjorie Taylor Green, a Georgia Republican, and Congressman Mike Flood, a Nebraska Republican. The House version does include $2.5 billion to fund a critical minerals stockpile and $500 million for a Pentagon mining loan program, although large mines often cost far more, noticed Reuters. House Democrats unanimously voted against the bill but their criticism has focused on tax cuts they say will widen the deficit while requiring cuts in health care, food assistance, education, scientific research and other programs. "There's so many issues right now under consideration in Congress and this one isn't breaking through, but it will certainly break through when we have a shortage of minerals in five years," said Jeff Green, a critical minerals industry consultant.
Yahoo
2 days ago
- Business
- Yahoo
Analysis-Trump's tax-cut bill could hold back US critical minerals projects
By Ernest Scheyder WASHINGTON (Reuters) -U.S. President Donald Trump's tax and spending bill would make it harder for American critical minerals companies to compete with China because it eliminates a tax credit for boosting domestic production of nickel, rare earths and other materials used in advanced electronics and weaponry. With Trump and Republican lawmakers aiming to cut government support for green energy projects, the U.S. House of Representatives passed a version of his "One Big Beautiful Bill Act" last month that eliminates the so-called 45X credit. The Senate is now debating the bill. Former President Joe Biden's 2022 climate change law, the Inflation Reduction Act, created the 10% production credit - a reduction in corporate taxes for critical minerals extraction and processing. The tax break also covers solar, battery and wind projects. The version of the bill that passed the House treats government incentives for wind turbines the same as those for mining projects that many view as crucial for national security. Critical minerals companies now say their projects are collateral damage to the political feud over renewable energy. The tax credit is already law and part of the current federal budget. The nonpartisan Congressional Budget Office, which scores the cost of legislative proposals when asked by Congress, has not studied how much would be saved by removing the credit. The Republican majority in Congress is seeking savings to fund other priorities such as tax cuts, defense and balancing the budget. This month, the hard-right House Freedom Caucus said it "will not accept" attempts to "water down, strip out, or walk back the hard-fought spending reductions and IRA Green New Scam rollbacks achieved in this legislation." Miners, though, say they need the credit to compete with China. Beijing has halted exports of some critical minerals, used its control of rare earths to strike a trade agreement with Washington, and flooded global markets with cheap supply of nickel, cobalt and lithium. The traditionally conservative mining industry now finds itself in the unusual position of needing Washington's support to grow and, in some cases, survive. The owner of the only U.S. cobalt mine went bankrupt this year after Chinese miners depressed global prices of that metal. "If we do not have that tax credit, critical minerals producers in the U.S. are at risk of succumbing to closures," said KaLeigh Long, founder and CEO of Westwin Elements, which is building the country's only commercial nickel refinery. Westwin might not be able to service its debt without the tax credit, Long said, noting the company's loans were modeled using the expectation it would be permanent. Last month, Long wrote a letter asking the Senate to keep the credit. It was co-signed by 30 industry executives. Any changes the Senate makes to the bill must be reconciled with the House version before being sent to Trump. Several House members have admitted they did not read the entire bill before voting for it, including Congresswoman Marjorie Taylor Green, a Georgia Republican, and Congressman Mike Flood, a Nebraska Republican. House Democrats unanimously voted against the bill but their criticism has focused on tax cuts they say will widen the deficit while requiring cuts in health care, food assistance, education, scientific research and other programs. "There's so many issues right now under consideration in Congress and this one isn't breaking through, but it will certainly break through when we have a shortage of minerals in five years," said Jeff Green, a critical minerals industry consultant. Senator John Hickenlooper, a Colorado Democrat who voted for the IRA in 2022, said in a statement to Reuters that cutting the credit would "kill jobs ... just to fund tax breaks for the ultra-weathy" and would be a "bad deal" for the country. Trump, who has issued several executive orders aimed at boosting U.S. minerals production, has not commented publicly on the 45x debate. The White House did not respond to requests for comment. "The tax credit just adds a phenomenal bump to a project's economics and gives us advantages that China already gives its own companies," said Alex Grant, CEO of magnesium processing startup Magrathea, who signed the letter. China controls most of the world's production of the metal, used in alloys for steel and aluminum. Abigail Hunter, executive director of SAFE's Center for Critical Minerals Strategy, described the tax credit as the "only tool currently available to support industry exposed to market manipulation." The House version also removes any remaining IRA funding for the U.S. Department of Energy's Loan Programs Office (LPO), which under Biden awarded billions of dollars in loans to Nevada lithium projects from ioneer and Lithium Americas. Potential for the LPO's closure led miners to rush to finalize loans last year, as Reuters reported in August. Republican senators this week said they were in discussions about how to extend some green energy tax credits, especially for businesses with large capital investments. No firm commitments have been made. For Mahesh Konduru, CEO of minerals processing startup Momentum Technologies, the credit is one way for Washington to show industry support. "We need to have the appropriate tools to build, nurture and grow that supply chain inside the United States," he said.
Yahoo
2 days ago
- Business
- Yahoo
Analysis-Trump's tax-cut bill could hold back US critical minerals projects
By Ernest Scheyder WASHINGTON (Reuters) -U.S. President Donald Trump's tax and spending bill would make it harder for American critical minerals companies to compete with China because it eliminates a tax credit for boosting domestic production of nickel, rare earths and other materials used in advanced electronics and weaponry. With Trump and Republican lawmakers aiming to cut government support for green energy projects, the U.S. House of Representatives passed a version of his "One Big Beautiful Bill Act" last month that eliminates the so-called 45X credit. The Senate is now debating the bill. Former President Joe Biden's 2022 climate change law, the Inflation Reduction Act, created the 10% production credit - a reduction in corporate taxes for critical minerals extraction and processing. The tax break also covers solar, battery and wind projects. The version of the bill that passed the House treats government incentives for wind turbines the same as those for mining projects that many view as crucial for national security. Critical minerals companies now say their projects are collateral damage to the political feud over renewable energy. The tax credit is already law and part of the current federal budget. The nonpartisan Congressional Budget Office, which scores the cost of legislative proposals when asked by Congress, has not studied how much would be saved by removing the credit. The Republican majority in Congress is seeking savings to fund other priorities such as tax cuts, defense and balancing the budget. This month, the hard-right House Freedom Caucus said it "will not accept" attempts to "water down, strip out, or walk back the hard-fought spending reductions and IRA Green New Scam rollbacks achieved in this legislation." Miners, though, say they need the credit to compete with China. Beijing has halted exports of some critical minerals, used its control of rare earths to strike a trade agreement with Washington, and flooded global markets with cheap supply of nickel, cobalt and lithium. The traditionally conservative mining industry now finds itself in the unusual position of needing Washington's support to grow and, in some cases, survive. The owner of the only U.S. cobalt mine went bankrupt this year after Chinese miners depressed global prices of that metal. "If we do not have that tax credit, critical minerals producers in the U.S. are at risk of succumbing to closures," said KaLeigh Long, founder and CEO of Westwin Elements, which is building the country's only commercial nickel refinery. Westwin might not be able to service its debt without the tax credit, Long said, noting the company's loans were modeled using the expectation it would be permanent. Last month, Long wrote a letter asking the Senate to keep the credit. It was co-signed by 30 industry executives. Any changes the Senate makes to the bill must be reconciled with the House version before being sent to Trump. Several House members have admitted they did not read the entire bill before voting for it, including Congresswoman Marjorie Taylor Green, a Georgia Republican, and Congressman Mike Flood, a Nebraska Republican. House Democrats unanimously voted against the bill but their criticism has focused on tax cuts they say will widen the deficit while requiring cuts in health care, food assistance, education, scientific research and other programs. "There's so many issues right now under consideration in Congress and this one isn't breaking through, but it will certainly break through when we have a shortage of minerals in five years," said Jeff Green, a critical minerals industry consultant. Senator John Hickenlooper, a Colorado Democrat who voted for the IRA in 2022, said in a statement to Reuters that cutting the credit would "kill jobs ... just to fund tax breaks for the ultra-weathy" and would be a "bad deal" for the country. Trump, who has issued several executive orders aimed at boosting U.S. minerals production, has not commented publicly on the 45x debate. The White House did not respond to requests for comment. "The tax credit just adds a phenomenal bump to a project's economics and gives us advantages that China already gives its own companies," said Alex Grant, CEO of magnesium processing startup Magrathea, who signed the letter. China controls most of the world's production of the metal, used in alloys for steel and aluminum. Abigail Hunter, executive director of SAFE's Center for Critical Minerals Strategy, described the tax credit as the "only tool currently available to support industry exposed to market manipulation." The House version also removes any remaining IRA funding for the U.S. Department of Energy's Loan Programs Office (LPO), which under Biden awarded billions of dollars in loans to Nevada lithium projects from ioneer and Lithium Americas. Potential for the LPO's closure led miners to rush to finalize loans last year, as Reuters reported in August. Republican senators this week said they were in discussions about how to extend some green energy tax credits, especially for businesses with large capital investments. No firm commitments have been made. For Mahesh Konduru, CEO of minerals processing startup Momentum Technologies, the credit is one way for Washington to show industry support. "We need to have the appropriate tools to build, nurture and grow that supply chain inside the United States," he said. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
2 days ago
- Business
- Yahoo
Analysis-Trump's tax-cut bill could hold back US critical minerals projects
By Ernest Scheyder WASHINGTON (Reuters) -U.S. President Donald Trump's tax and spending bill would make it harder for American critical minerals companies to compete with China because it eliminates a tax credit for boosting domestic production of nickel, rare earths and other materials used in advanced electronics and weaponry. With Trump and Republican lawmakers aiming to cut government support for green energy projects, the U.S. House of Representatives passed a version of his "One Big Beautiful Bill Act" last month that eliminates the so-called 45X credit. The Senate is now debating the bill. Former President Joe Biden's 2022 climate change law, the Inflation Reduction Act, created the 10% production credit - a reduction in corporate taxes for critical minerals extraction and processing. The tax break also covers solar, battery and wind projects. The version of the bill that passed the House treats government incentives for wind turbines the same as those for mining projects that many view as crucial for national security. Critical minerals companies now say their projects are collateral damage to the political feud over renewable energy. The tax credit is already law and part of the current federal budget. The nonpartisan Congressional Budget Office, which scores the cost of legislative proposals when asked by Congress, has not studied how much would be saved by removing the credit. The Republican majority in Congress is seeking savings to fund other priorities such as tax cuts, defense and balancing the budget. This month, the hard-right House Freedom Caucus said it "will not accept" attempts to "water down, strip out, or walk back the hard-fought spending reductions and IRA Green New Scam rollbacks achieved in this legislation." Miners, though, say they need the credit to compete with China. Beijing has halted exports of some critical minerals, used its control of rare earths to strike a trade agreement with Washington, and flooded global markets with cheap supply of nickel, cobalt and lithium. The traditionally conservative mining industry now finds itself in the unusual position of needing Washington's support to grow and, in some cases, survive. The owner of the only U.S. cobalt mine went bankrupt this year after Chinese miners depressed global prices of that metal. "If we do not have that tax credit, critical minerals producers in the U.S. are at risk of succumbing to closures," said KaLeigh Long, founder and CEO of Westwin Elements, which is building the country's only commercial nickel refinery. Westwin might not be able to service its debt without the tax credit, Long said, noting the company's loans were modeled using the expectation it would be permanent. Last month, Long wrote a letter asking the Senate to keep the credit. It was co-signed by 30 industry executives. Any changes the Senate makes to the bill must be reconciled with the House version before being sent to Trump. Several House members have admitted they did not read the entire bill before voting for it, including Congresswoman Marjorie Taylor Green, a Georgia Republican, and Congressman Mike Flood, a Nebraska Republican. House Democrats unanimously voted against the bill but their criticism has focused on tax cuts they say will widen the deficit while requiring cuts in health care, food assistance, education, scientific research and other programs. "There's so many issues right now under consideration in Congress and this one isn't breaking through, but it will certainly break through when we have a shortage of minerals in five years," said Jeff Green, a critical minerals industry consultant. Senator John Hickenlooper, a Colorado Democrat who voted for the IRA in 2022, said in a statement to Reuters that cutting the credit would "kill jobs ... just to fund tax breaks for the ultra-weathy" and would be a "bad deal" for the country. Trump, who has issued several executive orders aimed at boosting U.S. minerals production, has not commented publicly on the 45x debate. The White House did not respond to requests for comment. "The tax credit just adds a phenomenal bump to a project's economics and gives us advantages that China already gives its own companies," said Alex Grant, CEO of magnesium processing startup Magrathea, who signed the letter. China controls most of the world's production of the metal, used in alloys for steel and aluminum. Abigail Hunter, executive director of SAFE's Center for Critical Minerals Strategy, described the tax credit as the "only tool currently available to support industry exposed to market manipulation." The House version also removes any remaining IRA funding for the U.S. Department of Energy's Loan Programs Office (LPO), which under Biden awarded billions of dollars in loans to Nevada lithium projects from ioneer and Lithium Americas. Potential for the LPO's closure led miners to rush to finalize loans last year, as Reuters reported in August. Republican senators this week said they were in discussions about how to extend some green energy tax credits, especially for businesses with large capital investments. No firm commitments have been made. For Mahesh Konduru, CEO of minerals processing startup Momentum Technologies, the credit is one way for Washington to show industry support. "We need to have the appropriate tools to build, nurture and grow that supply chain inside the United States," he said. Melden Sie sich an, um Ihr Portfolio aufzurufen.
The Hill
06-06-2025
- Business
- The Hill
Freedom Caucus warns it will ‘not accept' Senate changes on green energy tax credits
The conservative House Freedom Caucus said on Friday that it would 'not accept' changes that 'water down' its cuts to green energy tax credits as the Senate weighs whether to alter the legislation. The House version of the 'big, beautiful bill' would make drastic changes to tax cuts for low-carbon energy sources passed in the Democrats' 2022 Inflation Reduction Act (IRA). Climate-friendly energy projects, including wind and solar, would only be able to qualify for the credits under the House bill if they begin construction within 60 days of the bill's enactment. This brief window would likely make many projects ineligible for the credits, and is expected to significantly hamstring the development of new renewable power. In a post on social media on Friday, the Freedom Caucus warned the Senate against loosening that restriction or others included in the bill. 'We want to be crystal clear: if the Senate attempts to water down, strip out, or walk back the hard-fought spending reductions and IRA Green New Scam rollbacks achieved in this legislation, we will not accept it,' said the post, which was attributed to the Freedom Caucus's board. 'The House Freedom Caucus Board will stand united holding the line. The American people didn't send us here to cave to the swamp — they sent us here to change it,' they added. The Senate has been widely expected to consider changes that could slow the rapid elimination of the tax credit passed under the House version of Trump's 'big beautiful bill.' Republican Sens. Lisa Murkowski (Alaska), Thom Tillis (N.C.), Jerry Moran (Kan.) and John Curtis (Utah) released a letter warning against a 'full scale' repeal of the tax credits. Senate Republicans can only afford three defections and pass their bill. On Friday, a group of 13 House GOP moderates released a letter calling on Senate leadership 'to substantively and strategically improve clean energy tax credit provisions' in the legislation. 'We believe the Senate now has a critical opportunity to restore common sense and deliver a truly pro-energy growth final bill that protects taxpayers while also unleashing the potential of U.S. energy producers, manufacturers, and workers,' said the letter, which was led by Reps. Jen Kiggans (R-Va.) and Brian Fitzpatrick (R-Pa.). Altogether, the letters illustrate what could be a tough task ahead of the Republican leadership as they look to find a measure that will keep at least 50 senators on board and appease the House. Emily Brooks contributed.
