I 

118TH CONGRESS 

2D SESSION H. R. 8971 

To amend the Internal Revenue Code of 1986 to allow an investment credit 

for certain domestic infant formula manufacturing facilities. 

IN THE HOUSE OF REPRESENTATIVES 

JULY 9, 2024 

Mr. NUNN of Iowa (for himself and Ms. HOULAHAN) introduced the following 

bill; which was referred to the Committee on Ways and Means, and in 

addition to the Committee on Agriculture, for a period to be subsequently 

determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned 

A BILL 

To amend the Internal Revenue Code of 1986 to allow an 

investment credit for certain domestic infant formula 

manufacturing facilities. 

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 ‘‘Investing in New Fam5 ilies And Newborns Through Tax Credit Act’’ or the ‘‘IN6 FANT Tax Credit Act’’. 


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1 SEC. 2. DOMESTIC INFANT FORMULA MANUFACTURING IN2 VESTMENT CREDIT. 

3 (a) IN GENERAL.—Subpart E of part IV of sub4 chapter A of chapter 1 of the Internal Revenue Code of 

5 1986 is amended by inserting after section 48E the fol6 lowing new section: 

7 ‘‘SEC. 48F. DOMESTIC INFANT FORMULA MANUFACTURING 

8 INVESTMENT CREDIT. 

9 ‘‘(a) ESTABLISHMENT OF CREDIT.—For purposes of 

10 section 46, the domestic infant formula manufacturing in11 vestment credit for any taxable year is an amount equal 

12 to 25 percent of the qualified investment for such taxable 

13 year with respect to any domestic infant formula manufac14 turing facility of an eligible taxpayer. 

15 ‘‘(b) QUALIFIED INVESTMENT.— 

16 ‘‘(1) IN GENERAL.—For purposes of subsection 

17 (a), the qualified investment with respect to any do18 mestic infant formula manufacturing facility for any 

19 taxable year is the basis of any qualified property 

20 placed in service by the taxpayer during such taxable 

21 year which is part of a domestic infant formula 

22 manufacturing facility. 

23 ‘‘(2) QUALIFIED PROPERTY.— 

24 ‘‘(A) IN GENERAL.—For purposes of this 

25 subsection, the term ‘qualified property’ means 

26 property— 


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1 ‘‘(i) which is tangible property, 

2 ‘‘(ii) with respect to which deprecia3 tion (or amortization in lieu of deprecia4 tion) is allowable, 

5 ‘‘(iii) which is— 

6 ‘‘(I) constructed, reconstructed, 

7 or erected by the taxpayer, or 

8 ‘‘(II) acquired by the taxpayer if 

9 the original use of such property com10 mences with the taxpayer, and 

11 ‘‘(iv) which is integral to the operation 

12 of the domestic infant formula manufac13 turing facility. 

14 ‘‘(B) BUILDINGS AND STRUCTURAL COM15 PONENTS.— 

16 ‘‘(i) IN GENERAL.—The term ‘quali17 fied property’ includes any building or its 

18 structural components which otherwise sat19 isfy the requirements under subparagraph 

20 (A). 

21 ‘‘(ii) EXCEPTION.—Clause (i) shall 

22 not apply with respect to a building or por23 tion of a building used for offices, adminis24 trative services, or other functions unre25 lated to manufacturing. 


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1 ‘‘(3) DOMESTIC INFANT FORMULA MANUFAC2 TURING FACILITY.—For purposes of this section— 

3 ‘‘(A) IN GENERAL.—The term ‘domestic 

4 infant formula manufacturing facility’ means a 

5 facility the primary purpose of which is the 

6 manufacturing of eligible infant formula. 

7 ‘‘(B) ELIGIBLE INFANT FORMULA.—The 

8 term ‘eligible infant formula’ means infant for9 mula that— 

10 ‘‘(i) may lawfully be sold in the 

11 United States, and 

12 ‘‘(ii) is manufactured in the United 

13 States. 

14 ‘‘(4) COORDINATION WITH REHABILITATION

15 CREDIT; CERTAIN QUALIFIED PROGRESS EXPENDI16 TURES RULES MADE APPLICABLE.—Rules similar to 

17 the rules of paragraphs (3) and (4) of section 

18 48D(b) shall apply for purposes of this section. 

19 ‘‘(c) ELIGIBLE TAXPAYER.— 

20 ‘‘(1) IN GENERAL.—For purposes of this sec21 tion, the term ‘eligible taxpayer’ means a taxpayer— 

22 ‘‘(A) described in section 48D(c), and 

23 ‘‘(B) with a total global revenue for the 

24 taxable year which does not exceed 

25 $750,000,000. 


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1 ‘‘(2) AGGREGATION RULES.—For purposes of 

2 this paragraph, all persons which are treated as a 

3 single employer under subsections (a) and (b) of sec4 tion 52 shall be treated as a single taxpayer.’’. 

5 (b) ELECTIVE PAYMENT AND TRANSFER OF CRED6 IT.—Section 6417 of such Code is amended— 

7 (1) in subsection (b), by adding at the end the 

8 following new paragraph: 

9 ‘‘(13) the domestic infant formula manufac10 turing investment credit under section 48F.’’, and 

11 (2) in subsection (d)(1)— 

12 (A) in subparagraph (E), by striking ‘‘(C), 

13 or (D)’’ each place it appears and inserting 

14 ‘‘(C), (D), or (E)’’, 

15 (B) by redesignating subparagraph (E) as 

16 subparagraph (F), and 

17 (C) by inserting after subparagraph (D) 

18 the following new subparagraph: 

19 ‘‘(E) ELECTION WITH RESPECT TO DOMES20 TIC INFANT FORMULA MANUFACTURING IN21 VESTMENT CREDIT.—If a taxpayer other than 

22 an entity described in subparagraph (A) makes 

23 an election under this subparagraph with re24 spect to any taxable year in which such tax25 payer has, after the date of the enactment of 


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1 this subparagraph, placed in service qualified 

2 property which is part of a domestic infant for3 mula manufacturing facility (as defined in sec4 tion 48F(b)(3)), such taxpayer shall be treated 

5 as an applicable entity for purposes of this sec6 tion for such taxable year, but only with respect 

7 to the credit described in subsection (b)(13).’’. 

8 (c) INCLUSION IN INVESTMENT CREDIT.—Section 46 

9 of such Code is amended in paragraph (6) by striking 

10 ‘‘and’’, in paragraph (7) by striking the period and insert11 ing ‘‘, and’’, and by adding at the end the following new 

12 paragraph: 

13 ‘‘(8) the domestic infant formula manufacturing 

14 investment credit.’’. 

15 (d) CLERICAL AMENDMENT.—The table of sections 

16 for subpart E of part IV of subchapter A of chapter 1 

17 of such Code is amended by inserting after the item relat18 ing to section 48E the following new item: 

‘‘Sec. 48F. Domestic infant formula manufacturing investment credit.’’. 

19 (e) EFFECTIVE DATE.—The amendments made by 

20 this section shall apply to property placed in service after 

21 March 1, 2022. 

22 SEC. 3. INFANT FORMULA PRODUCTION CREDIT. 

23 (a) IN GENERAL.—Subpart D of part IV of sub24 chapter A of the Internal Revenue Code of 1986 is amend25 ed by adding at the end the following new section: 


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1 ‘‘SEC. 45BB. INFANT FORMULA PRODUCTION CREDIT. 

2 ‘‘(a) IN GENERAL.—In the case of a qualified tax3 payer, for purposes of section 38, the infant formula pro4 duction credit for any taxable year is an amount equal 

5 to the product of— 

6 ‘‘(1) the amount in pounds of eligible infant 

7 formula manufactured by such taxpayer and sold for 

8 use in the United States during such taxable year, 

9 multiplied by 

10 ‘‘(2) $1.50. 

11 ‘‘(b) QUALIFIED TAXPAYER.—For purposes of this 

12 section, the term ‘qualified taxpayer’ means, with respect 

13 to a taxable year— 

14 ‘‘(1) a taxpayer if such taxpayer’s total global 

15 revenue for the preceding taxable year does not ex16 ceed $500,000,000, or 

17 ‘‘(2) a taxpayer to whom a credit was allowed 

18 under this section in the preceding taxable year. 

19 ‘‘(c) ELIGIBLE INFANT FORMULA DEFINED.—For 

20 purposes of this section, the term ‘eligible infant formula’ 

21 has the meaning given such term in section 48F(b)(3)(B). 

22 ‘‘(d) AGGREGATION RULES.—For purposes of this 

23 section, all persons which are treated as a single employer 

24 under subsections (a) and (b) of section 52 shall be treated 

25 as a single taxpayer. 


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1 ‘‘(e) COORDINATION WITH INVESTMENT CREDIT.— 

2 Infant formula produced at a facility with respect to which 

3 a credit was allowed under section 48F shall not be taken 

4 into account for purposes of subsection (a).’’. 

5 (b) CREDIT MADE TRANSFERABLE.—Section 

6 6418(f)(1) of such Code (as amended by section 2) is 

7 amended by adding at the end the following new clause: 

8 ‘‘(xii) The infant formula production 

9 credit determined under section 45BB.’’. 

10 (c) ELECTIVE PAYMENT OF CREDIT.—Section 

11 6417(b) of such Code (as amended by section 2) is amend12 ed by adding at the end the following new paragraph: 

13 ‘‘(14) The infant formula production credit de14 termined under section 45BB.’’. 

15 (d) CREDIT ALLOWED AS PART OF GENERAL BUSI16 NESS CREDIT.—Section 38(b) is amended by striking 

17 ‘‘plus’’ at the end of paragraph (40), by striking the period 

18 at the end of paragraph (41) and inserting ‘‘, plus’’, and 

19 by adding at the end the following new paragraph: 

20 ‘‘(42) in the case of an eligible taxpayer (as de21 fined in section 48F), the infant formula production 

22 credit determined under section 45BB(a).’’. 

23 (e) CLERICAL AMENDMENT.—The table of sections 

24 for subpart D of part IV of subchapter A of the Internal 


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

2 the following new item: 

‘‘Sec. 45BB. Infant formula production credit.’’. 

3 (f) EFFECTIVE DATE.—The amendments made by 

4 this section shall apply to formula manufactured after the 

5 date of the enactment of this Act. 

6 SEC. 4. REPORTS TO CONGRESS. 

7 Not later than 1 year after the date of the enactment 

8 of this Act and annually thereafter, the Secretary of Agri9 culture shall submit to Congress a report that includes— 

10 (1) with respect to the year preceding the re11 port, the number of persons that— 

12 (A) operated a domestic infant formula 

13 manufacturing facility (as defined in section 

14 48F(b)(3) of the Internal Revenue Code of 

15 1986); and 

16 (B) received funding under a rural devel17 opment program of the Department of Agri18 culture; 

19 (2) a description of any barriers that would pre20 vent a person that operates such a facility from ac21 cessing such funding and the resources the Secretary 

22 requires to address such barriers; and 


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1 (3) an assessment of the impact that domestic 

2 infant formula manufacturing facilities have on the 

3 communities in which such facilities are located. 

Æ 


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