I 

118TH CONGRESS 

2D SESSION H. R. 8504 

To amend the Internal Revenue Code of 1986 to establish the critical supply 

chains reshoring investment tax credit. 

IN THE HOUSE OF REPRESENTATIVES 

MAY 22, 2024 

Ms. MALLIOTAKIS (for herself, Mr. PASCRELL, Mr. MOYLAN, Mr. BILIRAKIS, 

Mr. LAWLER, Ms. VELA ́ZQUEZ, and Mr. KELLY of Pennsylvania) introduced the following bill; which was referred to the Committee on Ways 

and Means 

A BILL 

To amend the Internal Revenue Code of 1986 to establish 

the critical supply chains reshoring investment tax credit. 

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 ‘‘Supply Chain Security 

5 and Growth Act of 2024’’. 

6 SEC. 2. CRITICAL SUPPLY CHAINS RESHORING INVEST7 MENT CREDIT. 

8 (a) IN GENERAL.—Subpart E of part IV of sub9 chapter A of the Internal Revenue Code of 1986 is amendVerDate Sep 11 2014 05:37 Jul 04, 2024 Jkt 049200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H8504.IH H8504

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1 ed by inserting after section 48E the following new sec2 tion: 

3 ‘‘SEC. 48F. CRITICAL SUPPLY CHAINS RESHORING INVEST4 MENT CREDIT. 

5 ‘‘(a) IN GENERAL.—For purposes of section 46, in 

6 the case of a qualifying taxpayer, the critical supply chains 

7 reshoring investment credit is an amount equal to 40 per8 cent of the qualified investment with respect to any critical 

9 supply chain facility placed in service during such taxable 

10 year. 

11 ‘‘(b) QUALIFIED INVESTMENT.—For purposes of 

12 subsection (a), the qualified investment with respect to 

13 any critical supply chain facility for any taxable year is 

14 an amount equal to the basis of any qualified property 

15 placed in service by the taxpayer during such taxable year 

16 which is part of a such facility. 

17 ‘‘(c) QUALIFYING PROPERTY.—For purposes of this 

18 section, the term ‘qualifying property’ means property— 

19 ‘‘(1) that is integral to the operation of a crit20 ical supply chain facility, 

21 ‘‘(2) that is tangible property, 

22 ‘‘(3) with respect to which depreciation (or am23 ortization in lieu of depreciation) is allowable, and 

24 ‘‘(4) which is— 


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1 ‘‘(A) constructed, reconstructed, or erected 

2 by the taxpayer, or 

3 ‘‘(B) acquired by the taxpayer if the origi4 nal use of such property commences with the 

5 taxpayer. 

6 ‘‘(d) CRITICAL SUPPLY CHAIN FACILITY.— 

7 ‘‘(1) IN GENERAL.—For purposes of this sec8 tion, the term ‘critical supply chain facility’ means 

9 a facility— 

10 ‘‘(A) the primary purpose of which is the 

11 manufacturing of— 

12 ‘‘(i) An active pharmaceutical ingre13 dient (as defined in section 2017.1 of title 

14 21, Code of Federal Regulations (or any 

15 successor regulations)), 

16 ‘‘(ii) A drug (as defined in section 

17 201(g) of the Federal Food, Drug, and 

18 Cosmetic Act), 

19 ‘‘(iii) A biological product (as defined 

20 in section 351(i)(1) of the Public Health 

21 Service Act), 

22 ‘‘(iv) A medical countermeasure (as 

23 defined in section 319F-3(i)(1) of the Pub24 lic Health Service Act), 


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1 ‘‘(v) A medical diagnostic device (as 

2 defined in section 201(h) of the Federal 

3 Food, Drug, and Cosmetic Act) intended 

4 for use in the diagnosis of disease or other 

5 conditions, 

6 ‘‘(vi) Semiconductors or semicon7 ductor manufacturing equipment, 

8 ‘‘(vii) Aerospace equipment as defined 

9 under North American Industry Classifica10 tion Code 3364, 

11 ‘‘(viii) Artificial nanomaterials, and 

12 ‘‘(B) located in a ‘specified possession’ 

13 within the meaning of section 937(c) or Puerto 

14 Rico. 

15 ‘‘(e) RECONSTRUCTED PROPERTY.—Property shall 

16 be treated as reconstructed for purposes of subsection 

17 (c)(4)(A) if improvements to such property satisfy the 

18 substantial improvement test of section 1400Z19 2(d)(2)(D)(ii).’’. 

20 (b) COORDINATION BETWEEN CRITICAL SUPPLY

21 CHAINS RESHORING CREDIT AND ELECTRICITY PRODUC22 TION CREDIT.—Section 45(e) of such Code is amended 

23 by adding at the end the following new subsection: 

24 ‘‘(e) COORDINATION WITH CRITICAL SUPPLY

25 CHAINS RESHORING INVESTMENT CREDIT.—The term 


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1 ‘qualified facility’ shall not include any facility if a credit 

2 is allowed under section 48F with respect to such facility 

3 for the taxable year or any prior taxable year.’’. 

4 (c) CONFORMING AMENDMENTS.— 

5 (1) Section 6417(b) of such Code is amended 

6 by adding at the end the following: 

7 ‘‘(13) The critical supply chains reshoring in8 vestment credit determined under section 48F.’’. 

9 (2) Section 6418(f)(1)(A) of such Code is 

10 amended by adding at the end the following: 

11 ‘‘(xii) The critical supply chains re12 shoring investment credit determined 

13 under section 48F.’’. 

14 (3) Section 46 of such Code is amended by 

15 striking ‘‘and’’ at the end of paragraph (6), by strik16 ing the period at the end of paragraph (7) and in17 serting ‘‘, and’’, and by adding at the end the fol18 lowing new paragraph: 

19 ‘‘(8) the critical supply chains reshoring invest20 ment credit.’’. 

21 (d) EFFECTIVE DATE.—The amendments made by 

22 this section shall apply to property placed in service after 

23 December 31, 2024. 

Æ 


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