Many Potential Benefits for NIOCORP in the Critica
Post# of 38
(Total Views: 286)
Posted On: 08/17/2022 8:03:55 AM
Many Potential Benefits for NIOCORP in the Critical Minerals legislation - Company PR Aug 17th, 2022
https://mailchi.mp/niocorp.com/new-federal-le...62ad9d5558
The text of the press release -- new enthusiasm from a company that has been relatively slow to comment on Federal aid programs.
Inflation Reduction Act of 2022 Provides a 10% Advanced Manufacturing Tax Credit Applicable to Most of NioCorp’s Planned Products
New Electric Vehicle Federal Tax Credit Tied to Increasing use of Critical Minerals That are Produced in the U.S. or Allied Nations
CENTENNIAL, Colo., August 17, 2022—
The “Inflation Reduction Act of 2022,” signed into law by President Biden this week, includes multiple financial and tax incentives designed to encourage greater production of critical minerals in the U.S. Virtually all of the critical minerals NioCorp Developments Ltd. (“NioCorp” or the “Company”) (TSX:NB) (OTCQX:NIOBF) intends to produce as part of its Elk Creek Critical Minerals Project in Nebraska (the “Project”) would be eligible for new tax credits once the Project is financed and placed into commercial production.
“President Biden and Congressional leaders deserve credit for ‘walking the talk’ in this legislation on the need to make more of our own critical minerals in the U.S., and to reduce our reliance on foreign nations that hold the key to our nation’s success in transitioning to a less carbon-intensive economy,” stated Mark A. Smith, NioCorp’s President, CEO and Executive Chairman.
Advanced Manufacturing Tax Credit Includes Critical Minerals Production
The law creates a new 10% Advanced Manufacturing Tax Credit for a variety of critical minerals produced in the U.S., including niobium, scandium, and titanium. Should NioCorp find it economic to produce the magnetic rare earths neodymium, praseodymium, dysprosium, and terbium, and once the Project is financed and placed into commercial production, the 10% tax credit would also apply to the cost of producing these products.
“NioCorp could benefit substantially from these new production tax credits in the future,” said Smith. “This and other provisions in this law send a powerful signal to producers, markets, and investors that the U.S. government wants to up its game in terms of encouraging more production of American-made critical minerals.”
Electric Vehicle Tax Credit Tied to Domestic Production of Critical Minerals
The legislation revises the existing $7,500 federal electric vehicle (EV) tax credit. The new credit will apply to the purchase of vehicles meeting specific criteria on purchase of vehicles: (1) final assembly of the vehicle must occur in North America; (2) specific percentages of the vehicle battery's critical minerals must originate or be recycled in the U.S. or be produced in a U.S. free trade agreement partner country; and (3) specified percentages of the vehicle battery's components must be manufactured in North America.
The law specifically excludes application of the EV tax credit for vehicles placed in service after December 31, 2024 that utilize critical minerals in the vehicle’s battery that were extracted, processed, or recycled by a “foreign entity of concern,” which includes China, Russia, Iran, or North Korea.
The law extends the EV tax credit through 2032, and mandates escalating levels of critical minerals used in EV batteries to be sourced or recycled in the U.S. or in a country with which the U.S. has a free-trade agreement. The percentage of the value of the critical minerals extracted or processed in the U.S. or a US free-trade partner or recycled in North America must be:
40% for an EV placed in service before January 1, 2024;
50% for an EV placed in the service during calendar year 2024;
60% for an EV placed in service during calendar year 2025;
70% for an EV placed in service during calendar year 2026; and
80% for an EV placed in service after December 31, 2026.
Other Provisions That Could Benefit NioCorp
Other provisions of the law are aimed at encouraging greater production of critical minerals in the U.S.:
$500 million for "enhanced use" of the Defense Production Act to provide economic incentives to create, maintain, protect, expand, or restore domestic sources for critical components, critical technology items, and industrial resources.
$40 billion commitment authority for the U.S. Department of Energy’s Innovative Technology Loan Guarantee Program (Title XVII), on top of DOE's existing commitment authority of approximately $24 billion. The Innovative Technologies Loan Guarantee Program authorizes loan guarantees for projects that (1) "avoid, reduce, utilize, or sequester" air pollutants or anthropogenic emissions of greenhouse gases; and (2) employ "new or significantly improved technologies" as compared to commercial technologies in service in the United States at the time the guarantee is issued.
https://mailchi.mp/niocorp.com/new-federal-le...62ad9d5558
The text of the press release -- new enthusiasm from a company that has been relatively slow to comment on Federal aid programs.
Inflation Reduction Act of 2022 Provides a 10% Advanced Manufacturing Tax Credit Applicable to Most of NioCorp’s Planned Products
New Electric Vehicle Federal Tax Credit Tied to Increasing use of Critical Minerals That are Produced in the U.S. or Allied Nations
CENTENNIAL, Colo., August 17, 2022—
The “Inflation Reduction Act of 2022,” signed into law by President Biden this week, includes multiple financial and tax incentives designed to encourage greater production of critical minerals in the U.S. Virtually all of the critical minerals NioCorp Developments Ltd. (“NioCorp” or the “Company”) (TSX:NB) (OTCQX:NIOBF) intends to produce as part of its Elk Creek Critical Minerals Project in Nebraska (the “Project”) would be eligible for new tax credits once the Project is financed and placed into commercial production.
“President Biden and Congressional leaders deserve credit for ‘walking the talk’ in this legislation on the need to make more of our own critical minerals in the U.S., and to reduce our reliance on foreign nations that hold the key to our nation’s success in transitioning to a less carbon-intensive economy,” stated Mark A. Smith, NioCorp’s President, CEO and Executive Chairman.
Advanced Manufacturing Tax Credit Includes Critical Minerals Production
The law creates a new 10% Advanced Manufacturing Tax Credit for a variety of critical minerals produced in the U.S., including niobium, scandium, and titanium. Should NioCorp find it economic to produce the magnetic rare earths neodymium, praseodymium, dysprosium, and terbium, and once the Project is financed and placed into commercial production, the 10% tax credit would also apply to the cost of producing these products.
“NioCorp could benefit substantially from these new production tax credits in the future,” said Smith. “This and other provisions in this law send a powerful signal to producers, markets, and investors that the U.S. government wants to up its game in terms of encouraging more production of American-made critical minerals.”
Electric Vehicle Tax Credit Tied to Domestic Production of Critical Minerals
The legislation revises the existing $7,500 federal electric vehicle (EV) tax credit. The new credit will apply to the purchase of vehicles meeting specific criteria on purchase of vehicles: (1) final assembly of the vehicle must occur in North America; (2) specific percentages of the vehicle battery's critical minerals must originate or be recycled in the U.S. or be produced in a U.S. free trade agreement partner country; and (3) specified percentages of the vehicle battery's components must be manufactured in North America.
The law specifically excludes application of the EV tax credit for vehicles placed in service after December 31, 2024 that utilize critical minerals in the vehicle’s battery that were extracted, processed, or recycled by a “foreign entity of concern,” which includes China, Russia, Iran, or North Korea.
The law extends the EV tax credit through 2032, and mandates escalating levels of critical minerals used in EV batteries to be sourced or recycled in the U.S. or in a country with which the U.S. has a free-trade agreement. The percentage of the value of the critical minerals extracted or processed in the U.S. or a US free-trade partner or recycled in North America must be:
40% for an EV placed in service before January 1, 2024;
50% for an EV placed in the service during calendar year 2024;
60% for an EV placed in service during calendar year 2025;
70% for an EV placed in service during calendar year 2026; and
80% for an EV placed in service after December 31, 2026.
Other Provisions That Could Benefit NioCorp
Other provisions of the law are aimed at encouraging greater production of critical minerals in the U.S.:
$500 million for "enhanced use" of the Defense Production Act to provide economic incentives to create, maintain, protect, expand, or restore domestic sources for critical components, critical technology items, and industrial resources.
$40 billion commitment authority for the U.S. Department of Energy’s Innovative Technology Loan Guarantee Program (Title XVII), on top of DOE's existing commitment authority of approximately $24 billion. The Innovative Technologies Loan Guarantee Program authorizes loan guarantees for projects that (1) "avoid, reduce, utilize, or sequester" air pollutants or anthropogenic emissions of greenhouse gases; and (2) employ "new or significantly improved technologies" as compared to commercial technologies in service in the United States at the time the guarantee is issued.
(0)
(0)NioCorp Developments Ltd. (NIOBD) Stock Research Links
Scroll down for more posts ▼