This bill, titled the "Fusion Advanced Manufacturing Parity Act," amends the Internal Revenue Code of 1986 to expand the advanced manufacturing production credit. Its primary goal is to include fusion energy components, thereby providing a new tax credit for their domestic production and sale.

This legislation establishes a credit equal to 25 percent of the sales price for eligible fusion energy components. The credit will apply to components produced and sold after December 31, 2025, but includes a structured phase-out. The credit amount will decrease to 75% in 2032, 50% in 2033, and 25% in 2034, becoming 0% for components sold after December 31, 2034.

The bill provides a comprehensive definition of "fusion energy component," specifying numerous items intended for the operation or use of a fusion energy machine. These include:

High-temperature superconducting magnets
Fusion chambers or plasma vacuum vessels
Blanket systems
High-energy lasers
Fusion heating systems
High-voltage capacitors
Plasma compression systems
Fuel processing and storage components
Fusion targets

It also defines a "fusion energy machine" as one used for the production of electricity or process heat, along with associated systems.

Additionally, the bill modifies the list of critical minerals and other components eligible for the advanced manufacturing production credit. These changes involve adding materials such as deuterium, helium-3, and tritium, and refining definitions for others like tungsten and vanadium. All amendments made by this section will apply to components produced and sold after December 31, 2025.