Rare Earth Magnet Security Act of 2025

This bill creates a tax credit for U.S. manufacturers producing rare earth magnets. It provides $20 per kilogram for magnets made in the U.S., increasing to $30 per kilogram if at least 90% of component rare earth materials (like neodymium or cobalt) are also sourced domestically. The credit phases out after 2034 (70% in 2035, 35% in 2036-37, and 0% after 2037) and restricts credits if materials come from "non-allied foreign nations" (with limited exceptions until 2027). The credit applies to taxable years beginning after December 31, 2024, and requires magnets to be produced in regular business operations.