US SB1979

Creates a tax credit of $20 per kilogram for rare earth magnets manufactured in the United States, increasing to $30 per kilogram if at least 90% of component rare earth materials are domestically produced

Prohibits the credit for magnets using rare earth materials from "non-allied foreign nations" (China, Russia, North Korea, Iran), with a delayed restriction until January 1, 2027 for dysprosium, terbium, samarium, and gadolinium

Phases out the credit starting in 2035 (70% credit), reducing to 35% in 2036-2037, and ending completely after December 31, 2037

Defines qualifying rare earth magnets as permanent magnets with intrinsic coercivity of 10 kOe or higher, made from neodymium-iron-boron or samarium-cobalt alloys

Allows taxpayers to elect direct payment of the credit instead of applying it against tax liability, effective for taxable years beginning after December 31, 2024