Make Medicine in America Again Act

To amend the Internal Revenue Code of 1986 to provide for extended expensing of pharmaceutical manufacturing property, and for other purposes. 1. Short title This Act may be cited as the Make Medicine in America Again Act 2. Extension and expansion of cost expensing provisions for Pharmaceutical Manufacturers (a) Allowance of bonus depreciation for pharmaceutical manufacturing property Section 168(k)(2)(A) (1) in clause (i), by striking or or or (VI) which is pharmaceutical manufacturing property (as defined in paragraph 11). , and (2) in clause (iii), by striking the period and adding at the end (other than pharmaceutical manufacturing property). (b) Application of applicable percentage Section 168(k)(6) of such Code is amended by adding at the end the following new subparagraph: (D) Rule for pharmaceutical manufacturing property Notwithstanding any other provisions of this paragraph, in the case of any qualified property which is pharmaceutical manufacturing property, the term applicable percentage . (c) Pharmaceutical manufacturing property defined Section 168(k) of such Code is amended by adding at the end the following new paragraph: (11) Pharmaceutical manufacturing property defined For purposes of this subsection, the term pharmaceutical manufacturing property (a) Effective date The amendments made by this section shall apply to property placed in service after December 31, 2022. . 3. Pharmaceutical manufacturing credit (a) In general Subpart D of part IV of subchapter A of chapter 1 45U. Pharmaceutical manufacturing credit (a) In general For purposes of section 38, the pharmaceutical manufacturing credit for the taxable year shall be an amount equal to 50 percent of the qualified production activity expenditures of the taxpayer for the taxable year. (b) Qualified production activity expenditures For purposes of this section— (1) In general The term qualified production activity expenditures (A) wages paid or incurred to an employee of the taxpayer for services performed by such employee in the conduct of a qualified pharmaceutical manufacturing business in the United States (but only if the employee’s principal place of employment is in the United States), (B) amounts paid or incurred for any tangible personal property (whether or not otherwise properly chargeable to capital account) used in the conduct of a qualified pharmaceutical manufacturing business in the United States (but only if the primary use of such property is in the United States), and (C) any direct or indirect costs paid or incurred in the conduct of a qualified pharmaceutical manufacturing business in the United States. (2) Qualified pharmaceutical manufacturing business (A) In general The term qualified pharmaceutical manufacturing business (B) Active pharmaceutical ingredient The term active pharmaceutical ingredients (C) Pharmaceutical The term pharmaceutical (i) means any drug (as defined in section 201 of the Federal Food, Drug, and Cosmetic Act), and (ii) includes a biological product (as defined in section 351 of the Public Health Service Act). (3) Certain health plan expenses treated as wages (A) In general For purposes of paragraph (1), the term wages (B) Qualified health plan expenses For purposes of this paragraph, the term qualified health plan expenses (C) Allocation rules For purposes of this paragraph, qualified health plan expenses shall be allocated to qualified wages in such manner as the Secretary may prescribe. Except as otherwise provided by the Secretary, such allocation shall be treated as properly made if made on the basis of being pro rata among employees and pro rata on the basis of periods of coverage (relative to the periods to which such wages relate). (4) United States The term United States (c) Special rules (1) Reduction in basis If a credit is determined under this section with respect to any property by reason of any qualified production activity expenditures described in subsection (b)(1)(B), the basis of such property shall be reduced by the amount of the credit so determined. (2) Coordination with other credits Any qualified production activity expenditures taken into account in determining the amount of the credit under subsection (a) shall not be taken into account in determining a credit under any other provision of this chapter. (3) Limitation on wages taken into account The amount of wages taken into account under subsection (a) with respect to any employee shall not exceed an amount equal to the contribution and benefit base in effect under section 230 of the Social Security Act for the calendar year in which the taxable year begins. . (b) Credit allowed against alternative minimum tax Section 38(c)(4)(B) of such Code is amended by redesignating clauses (x), (xi), and (xii) as clauses (xi), (xii), and (xiii), respectively, and by inserting after clause (ix) the following new clause: (x) the credit determined under section 45U, . (c) Denial of deduction Section 280C of such Code is amended by adding at the end the following new subsection: (i) Pharmaceutical manufacturing credit No deduction shall be allowed for that portion of the qualified production activity expenditures (as defined in section 45U(b)) otherwise allowable as a deduction for the taxable year which is equal to the amount of the pharmaceutical manufacturing credit determined for such taxable year under section 45U(a). . (d) Part of general business credit Section 38(b) of such Code is amended by striking plus , plus (34) the pharmaceutical manufacturing credit determined under section 45U(a). . (e) Clerical amendment The table of sections for subpart D of part IV of subchapter A of chapter 1 is amended by adding at the end the following new item: Sec. 45U. Pharmaceutical manufacturing credit. . (f) Effective date The amendments made by this section shall apply to amounts paid or incurred after the date of the enactment of this Act.

Summary: Make Medicine in America Again Act This bill provides tax incentives for the manufacture of pharmaceutical property, equipment, buildings, or facilities in the United States. Specifically it allows bonus depreciation for such property and a business-related tax credit for 50% of expenditures for (1) wages for services performed in a U.S. pharmaceutical manufacturing business, (2) the tangible personal property of such a business, and (3) any direct or indirect costs paid or incurred in a U.S. pharmaceutical manufacturing business.