Proposition 20
Tag 04OE, permanent. Cite it as [Bourbaki, Tag 04OE].
Commutative Algebra, chapter V, § 1. Notion of an integral element
*Let , be a graded ring and a (commutative) graded -algebra. The set of elements of integral over is a graded subalgebra of .
If for and is a reduced ring, then for .*
The diagram
(where is the homomorphism defining the -algebra structure on and the homomorphism canonically derived from it) is commutative, as is immediately verified from the definition (5). Let be an element of integral over ; then is integral over (no. 1, Proposition 2) and it therefore follows from no. 5, Proposition 16 that there exists an integer such that is an element of integral over . We then deduce from no. 3, Proposition 12 that the coefficients of the polynomial are integral over ; as these coefficients are by definition the homogeneous components of , it is seen that these are integral over , which proves that is a graded subalgebra of .
Suppose now that where ; the remark at the beginning of this no. shows that satisfies an equation of the form (4) where for . If for , then and if is a reduced ring we conclude that and hence for all in this case.
Recall (Chapter II, § 2, no. 9) that, if is a graded ring and is a multiplicative subset of consisting of homogeneous elements, a graded ring structure is defined on by taking the set of homogeneous elements of degree to be the set of elements of the form , where and are homogeneous and such that
Bourbaki puts the proof directly after the statement, so what is above is the statement and its proof together.