1. Short title This Act may be cited as the Rare Earth Magnet Manufacturing Production Tax Credit Act of 2023 . 2. Credit for production of rare earth magnets (a) In general Subpart D of part IV of subchapter A of chapter 1 of the Internal Revenue Code of 1986 is amended by adding after section 45AA the following: 45BB. Credit for production of rare earth magnets (a) In general (1) Allowance of credit For purposes of section 38, the credit for production of rare earth magnets determined under this section for any taxable year is an amount equal to the sum of the credit amounts determined under subsection (b) with respect to rare earth magnets which are— (A) manufactured or produced by the taxpayer, and (B) sold by such taxpayer to an unrelated person during the taxable year. (2) Unrelated person (A) In general For purposes of this subsection, a taxpayer shall be treated as selling rare earth magnets to an unrelated person if such magnet is sold to such person by a person related to the taxpayer. (B) Election (i) In general At the election of the taxpayer (in such form and manner as the Secretary may prescribe), a sale of rare earth magnets by such taxpayer to a related person shall be deemed to have been made to an unrelated person. (ii) Requirement As a condition of, and prior to, any election described in clause (i), the Secretary may require such information or registration as the Secretary deems necessary for purposes of preventing duplication, fraud, or any improper or excessive amount determined under paragraph (1). (b) Credit amount (1) In general The amount determined under this subsection is— (A) $20 per kilogram of rare earth magnets manufactured or produced in the United States by the taxpayer during the taxable year which are not described in subparagraph (B), and (B) $30 per kilogram of rare earth magnets manufactured or produced in the United States by the taxpayer during the taxable year if not less than 90 percent of the component rare earth materials of such magnets are produced within the