II 

116TH CONGRESS 

2D SESSION S. 3945 

To amend the Internal Revenue Code of 1986 to provide incentives for 

relocating manufacturing of pharmaceuticals and medical supplies and 

devices to the United States. 

IN THE SENATE OF THE UNITED STATES 

JUNE 11, 2020 

Mrs. LOEFFLER (for herself, Ms. ERNST, and Mr. CRUZ) introduced the 

following bill; which was read twice and referred to the Committee on Finance 

A BILL 

To amend the Internal Revenue Code of 1986 to provide 

incentives for relocating manufacturing of pharmaceuticals and medical supplies and devices to the United 

States. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Bring Entrepreneurial 

5 Advancements To Consumers Here In North America 

6 Act’’. 

7 SEC. 2. FINDINGS. 

8 Congress finds as follows: 


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1 (1) In late December 2019, authorities in the 

2 city of Wuhan in China’s Hubei Province reported a 

3 cluster of pneumonia cases of unknown cause. 

4 (2) The Government of the People’s Republic of 

5 China eventually identified the cause of the outbreak 

6 to be a novel coronavirus that would later be under7 stood to cause a respiratory illness in humans, 

8 known as COVID–19. 

9 (3) The pandemic spread of COVID–19 and the 

10 geographic location of its origin caused reverbera11 tions in medical supply chains that reached around 

12 the world. 

13 (4) The COVID–19 pandemic highlights the 

14 United States dependency on China for critical med15 ical supplies and pharmaceutical products. 

16 (5) The Government of the People’s Republic of 

17 China and the Chinese Communist Party prioritize 

18 state support for biotechnology manufacturing as a 

19 strategic industry under the ‘‘Made in China 2025’’ 

20 initiative. 

21 (6) According to the United States Food and 

22 Drug Administration, as of 2018, China is the larg23 est exporter of medical devices and the second larg24 est exporter of drugs and biologics to the United 

25 States. 


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1 (7) Chinese pharmaceutical companies produce 

2 more than 90 percent of the supply of antibiotics, vi3 tamin C, ibuprofen, and hydrocortisone in the 

4 United States. 

5 (8) In March 2020, Xinhua News Service, a 

6 Chinese state-controlled news agency, reprinted an 

7 article insinuating that if China were to announce 

8 its ‘‘strategic control’’ of medical products and ban 

9 exports to the United States, ‘‘the United States 

10 would be plunged into the vast ocean of novel 

11 coronavirus.’’ 

12 (9) The ability of the Government of the Peo13 ple’s Republic of China and the Chinese Communist 

14 Party to control the medical supply chain poses a 

15 risk to the national security of the United States. 

16 (10) Companies should be incentivized through 

17 a competitive tax structure to manufacture and 

18 produce pharmaceuticals and medical devices in the 

19 United States. 

20 SEC. 3. TAX INCENTIVES FOR RELOCATING MANUFAC21 TURING OF PHARMACEUTICALS AND MED22 ICAL SUPPLIES AND DEVICES TO THE 

23 UNITED STATES. 

24 (a) ACCELERATED DEPRECIATION FOR NONRESI25 DENTIAL REAL PROPERTY.—Section 168 of the Internal 


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1 Revenue Code of 1986 is amended by adding at the end 

2 the following new subsection: 

3 ‘‘(n) ACCELERATED DEPRECIATION FOR NONRESI4 DENTIAL REAL PROPERTY ACQUIRED IN CONNECTION

5 WITH THE RELOCATION OF MANUFACTURING OF PHAR6 MACEUTICALS AND MEDICAL SUPPLIES AND DEVICES TO

7 THE UNITED STATES.— 

8 ‘‘(1) TREATMENT AS 20-YEAR PROPERTY.—For 

9 purposes of this section, qualified nonresidential real 

10 property shall be treated as 20-year property. 

11 ‘‘(2) APPLICATION OF BONUS DEPRECIATION.— 

12 For application of bonus depreciation to qualified 

13 nonresidential real property, see subsection (k). 

14 ‘‘(3) QUALIFIED NONRESIDENTIAL REAL PROP15 ERTY.—For purposes of this subsection, the term 

16 ‘qualified nonresidential real property’ means non17 residential real property placed in service in the 

18 United States by a qualified manufacturer if such 

19 property is acquired by such qualified manufacturer 

20 in connection with a qualified relocation of manufac21 turing. 

22 ‘‘(4) QUALIFIED MANUFACTURER.—For pur23 poses of this subsection, the term ‘qualified manu24 facturer’ means any person engaged in the trade or 


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1 business of manufacturing a qualified medical prod2 uct. 

3 ‘‘(5) QUALIFIED MEDICAL PRODUCT.—For pur4 poses of this subsection, the term ‘qualified medical 

5 product’ means any pharmaceutical, medical device, 

6 or medical supply. 

7 ‘‘(6) QUALIFIED RELOCATION OF MANUFAC8 TURING.—For purposes of this subsection— 

9 ‘‘(A) IN GENERAL.—The term ‘qualified 

10 relocation of manufacturing’ means, with re11 spect to any qualified manufacturer, the reloca12 tion of the manufacturing of a qualified medical 

13 product from a foreign country to the United 

14 States. 

15 ‘‘(B) RELOCATION OF PROPERTY NOT RE16 QUIRED.—For purposes of subparagraph (A), 

17 manufacturing shall not fail to be treated as re18 located merely because property used in such 

19 manufacturing was not relocated. 

20 ‘‘(C) RELOCATION OF NOT LESS THAN

21 EQUIVALENT PRODUCTIVE CAPACITY RE22 QUIRED.—For purposes of subparagraph (A), 

23 manufacturing shall not be treated as relocated 

24 unless the property manufactured in the United 

25 States is substantially identical to the property 


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1 previously manufactured in a foreign country 

2 and the increase in the units of production of 

3 such property in the United States by the quali4 fied manufacturer is not less than the reduction 

5 in the units of production of such property in 

6 such foreign country by such qualified manufac7 turer. 

8 ‘‘(7) APPLICATION TO POSSESSIONS OF THE

9 UNITED STATES.—For purposes of this subsection, 

10 the term ‘United States’ includes any possession of 

11 the United States.’’. 

12 (b) EXCLUSION OF GAIN ON DISPOSITION OF PROP13 ERTY IN CONNECTION WITH QUALIFIED RELOCATION OF

14 MANUFACTURING.— 

15 (1) IN GENERAL.—Part III of subchapter B of 

16 chapter 1 of such Code is amended by inserting 

17 after section 139H the following new section: 

18 ‘‘SEC. 139I. EXCLUSION OF GAIN ON DISPOSITION OF PROP19 ERTY IN CONNECTION WITH QUALIFIED RE20 LOCATION OF MANUFACTURING. 

21 ‘‘(a) IN GENERAL.—In the case of a qualified manu22 facturer, gross income shall not include gain from the sale 

23 or exchange of qualified relocation disposition property. 

24 ‘‘(b) QUALIFIED RELOCATION DISPOSITION PROP25 ERTY.—For purposes of this section, the term ‘qualified 


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1 relocation disposition property’ means any property 

2 which— 

3 ‘‘(1) is sold or exchanged by a qualified manu4 facturer in connection with a qualified relocation of 

5 manufacturing, and 

6 ‘‘(2) was used by such qualified manufacturer 

7 in the trade or business of manufacturing a qualified 

8 medical product in the foreign country from which 

9 such manufacturing is being relocated. 

10 ‘‘(c) OTHER TERMS.—Terms used in this section 

11 which are also used in subsection (n) of section 168 shall 

12 have the same meaning when used in this section as when 

13 used in such subsection.’’. 

14 (2) CLERICAL AMENDMENT.—The table of sec15 tions for part III of subchapter B of chapter 1 of 

16 such Code is amended by inserting after the item re17 lating to section 139H the following new item: 

‘‘Sec. 139I. Exclusion of gain on disposition of property in connection with 

qualified relocation of manufacturing.’’. 

18 (c) EFFECTIVE DATES.— 

19 (1) ACCELERATED DEPRECIATION.—The 

20 amendment made by subsection (a) shall apply to 

21 property placed in service after the date of the en22 actment of this Act. 


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1 (2) EXCLUSION OF GAIN.—The amendments 

2 made by subsection (b) shall apply to sales and ex3 changes after the date of the enactment of this Act. 

Æ 


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