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., Aug. 17, 2022 /PRNewswire/ -- 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 bill 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 bill 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;1 and (3) specified percentages of the vehicle
battery's components must be manufactured in North America.
The bill 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 bill 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 Bill Provisions That Could Benefit NioCorp
Other provisions of the bill 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.
For More Information:
Contact Jim Sims, Corporate
Communications Officer, NioCorp Developments Ltd., 720-639-4650,
jim.sims@niocorp.com
Source: NioCorp Developments Ltd.
@NioCorp $NB.TO $NIOBF $BR3 #Niobium #Scandium #rareearth
#neodymium #dysprosium #terbium #ElkCreek #EV #electricvehicle
About NioCorp
NioCorp is developing a critical minerals project in
Southeast Nebraska that will
produce niobium, scandium, and titanium. The Company also is
evaluating the potential to produce several rare earths from the
Project. Niobium is used to produce specialty alloys as well
as High Strength, Low Alloy ("HSLA") steel, which is a lighter,
stronger steel used in automotive, structural, and pipeline
applications. Scandium is a specialty metal that can be combined
with Aluminum to make alloys with increased strength and improved
corrosion resistance. Scandium is also a critical component of
advanced solid oxide fuel cells. Titanium is used in various
lightweight alloys and is a key component of pigments used in
paper, paint and plastics and is also used for aerospace
applications, armor, and medical implants. Magnetic rare
earths, such as neodymium, praseodymium, terbium, and dysprosium
are critical to the making of Neodymium-Iron-Boron ("NdFeB")
magnets, which are used across a wide variety of defense and
civilian applications.
Cautionary Note Regarding Forward-Looking Statements
Neither the Toronto Stock Exchange ("TSX") nor its Regulation
Services Provider (as that term is defined in the policies of the
TSX) accepts responsibility for the adequacy or accuracy of this
document. Certain statements contained in this document may
constitute forward-looking statements, including but not limited to
statements related to the Company's expectations regarding the
anticipated benefits of the Inflation Reduction Act of 2022,
including benefits related to advanced manufacturing tax credits,
electric vehicle tax credits and provisions encouraging greater
production of critical minerals in the U.S. Such forward-looking
statements are based upon NioCorp's reasonable expectations and
business plan at the date hereof, which are subject to change
depending on economic, political and competitive circumstances and
contingencies. Readers are cautioned that such forward-looking
statements involve known and unknown risks, uncertainties and other
factors that may cause a change in such assumptions and the actual
outcomes and estimates to be materially different from those
estimated or anticipated future results, achievements or position
expressed or implied by those forward-looking statements. Risks,
uncertainties and other factors that could cause NioCorp's plans or
prospects to change include risks related to NioCorp's ability to
operate as a going concern; risks related to NioCorp's requirement
of significant additional capital; changes in demand for and price
of commodities (such as fuel and electricity) and currencies;
changes or disruptions in the securities markets; legislative,
political or economic developments; the need to obtain permits and
comply with laws and regulations and other regulatory requirements;
the possibility that actual results of work may differ from
projections/expectations or may not realize the perceived potential
of NioCorp's projects; risks of accidents, equipment breakdowns and
labor disputes or other unanticipated difficulties or
interruptions; the possibility of cost overruns or unanticipated
expenses in development programs; operating or technical
difficulties in connection with exploration, mining or development
activities; the speculative nature of mineral exploration and
development, including the risks of diminishing quantities of
grades of reserves and resources; the risks involved in the
exploration, development and mining business, and the risks set
forth in the Company's filings with the SEC at www.sec.gov. NioCorp
disclaims any intention or obligation to update or revise any
forward-looking statements whether as a result of new information,
future events or otherwise.
1 Nations that have free trade agreements with the
U.S. include the following: Australia, Bahrain, Canada, Chile, Colombia, Costa
Rica, Dominican Republic,
El Salvador, Guatemala, Honduras, Israel, Jordan, Korea, Mexico, Morocco, Nicaragua, Oman, Panama,
Peru, and Singapore.
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