ICYMI: Senator Murray Visits First Mode Proving Grounds in Centralia, Sees Company’s Work to Decarbonize the Mining Industry
Washington, D.C. – U.S. Senators Patty Murray (D-WA), Catherine Cortez Masto (D-NV), and John Hickenlooper (D-CO) led their colleagues in sending a letter to Treasury Secretary Janet Yellen this week urging the administration to allow critical mineral mining and processing activities to qualify for tax credits they passed in the Inflation Reduction Act.
In the letter, the Senators urge the administration to ensure that raw materials and extraction costs are eligible for the 45X Advanced Manufacturing Production Tax Credit. The Department’s initial proposal to implement the credit excludes these costs, which reduces the value of the tax credit. This change would allow the tax credit to support the entire clean energy supply chain, including critical mineral processing and electric vehicle production that is happening in Washington and across the U.S. Last month Senator Murray visited First Mode, a product innovation company headquartered in Seattle, with a proving grounds facility in Centralia, that is working to eliminate carbon emissions from mining and speed the industry’s transition to clean energy.
“As you know, Congress passed the Inflation Reduction Act in part to support the domestic extraction and production of critical minerals and materials, as well as the manufacturing of batteries and their components,” the senators wrote. “The clear purpose of section 45X was to encourage investment in the United States and to build a reliable and resilient domestic supply chain for critical minerals right here at home. The section 45X credit was designed to support responsible domestic mining and processing of these minerals. As members of the U.S. Senate we want to clarify that the blanket exclusion of materials costs is not consistent with the intent of Congress and should be expeditiously revised.”
“However, by excluding the majority of the production costs from the 45X credit, Treasury would disincentivize investment in the United States, and also increase our reliance on countries that do not share our democratic or geopolitical values,” the senators wrote.
The full text of the letter can be found here.
The letter was also signed by U.S. Senators Jacky Rosen (D-NV), Joe Manchin (D-WV), Mark Kelly (D-AZ), Laphonza Butler (D-CA), Kyrsten Sinema (I-AZ), and Bob Casey (D-PA).
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