Great Lakes Wire

Hunton announced on the social media platform X that metallurgical coal has been added as a Section 45X "critical mineral." The firm said that the change under the One Big Beautiful Bill (OBBBA) narrows eligibility by ending wind credits after 2027, phasing down other mineral credits, and tightening U.S. production, sale, and sourcing requirements.

According to Hunton’s Nickel Report analysis, OBBBA maintains Section 45X but refocuses it by adding metallurgical coal to the list of applicable critical minerals and introducing phase-outs for many other 45X critical-mineral credits that had been permanent under the Inflation Reduction Act (IRA). The same report explains that the bill narrows eligibility and sharpens compliance around how critical minerals and components are produced and sold. It frames the addition of metallurgical coal as a targeted, time-bound incentive within a broader reshaping of clean-manufacturing credits.

Sidley’s client update on OBBBA indicates that wind energy components will lose eligibility for Section 45X after 2027, with accelerated timelines now applying to qualify remaining technologies. Sidley further notes that the Act "terminates the credit for wind energy components sold after 2027" and aligns other schedules to IRA-style phaseouts. These changes compress development windows and shift manufacturing incentives away from certain wind components toward other domestic priorities.

The Congressional Research Service (CRS) states that OBBBA makes metallurgical coal eligible for a Section 45X production credit equal to 2.5% of production costs, available through 2029. CRS clarifies that qualifying metallurgical coal may be produced inside or outside the United States. The service distinguishes this reduced rate from the 10% rate that applies to other 45X critical minerals in general context and details the definitional scope for steel-suitable coal. These specifics indicate a narrower, time-limited incentive aimed at steel supply chains rather than a broad, long-term subsidy.

According to Hunton Andrews Kurth’s official firm overview, Hunton is a global law firm with more than a century of history and recognized strengths in energy, environmental, and regulatory matters. The firm supports its expertise with insights published on practice-area blogs such as The Nickel Report. With offices across the United States and internationally, Hunton advises clients on complex policy and transactional issues. Its publications regularly analyze federal statutes and rulemakings affecting industrial supply chains and clean-energy incentives.