Elimination of Double Subsidies for the Hardrock Mining Industry Act of 2005

This bill would eliminate a specific tax break, known as the "percentage depletion allowance," for companies mining hardrock minerals like gold, silver, and copper on federal lands. Currently, this tax deduction allows mining companies to reduce their taxable income based on a percentage of the minerals they extract.

Under this legislation, a portion of the new tax revenue generated—approximately 25 percent—would be directed into a dedicated Abandoned Mine Reclamation Trust Fund. These funds would be used by the Department of the Interior to clean up and restore land and water resources damaged by past mining activities. For citizens, this bill aims to end what the sponsor considers a double subsidy for mining on public lands while providing a consistent funding source for environmental restoration in affected communities.