I 
117TH CONGRESS 
2D SESSION 
H. R. 7166 
To amend the Internal Revenue Code of 1986 to provide for extended 
expensing of pharmaceutical manufacturing property, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
MARCH 18, 2022 
Mr. MOONEY 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 provide 
for extended expensing of pharmaceutical manufacturing 
property, and for other purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Make Medicine in 
America Again Act’’. 
SEC. 2. EXTENSION AND EXPANSION OF COST EXPENSING 
PROVISIONS FOR PHARMACEUTICAL MANU-
FACTURERS. 
(a) ALLOWANCE
OF BONUS DEPRECIATION
FOR 
PHARMACEUTICAL
MANUFACTURING
PROPERTY.—Sec-
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tion 168(k)(2)(A) of the Internal Revenue Code of 1986 
is amended— 
(1) in clause (i), by striking ‘‘or’’ in subclause 
(III), by striking ‘‘or’’ in subclause (IV), by adding 
‘‘or’’ at the end of subclause (V), and by adding at 
the end the following new subclause: 
‘‘(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 man-
ufacturing 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 MANU-
FACTURING
PROPERTY.—Notwithstanding any 
other provisions of this paragraph, in the case 
of any qualified property which is pharma-
ceutical manufacturing property, the term ‘ap-
plicable percentage’ means, in the case of prop-
erty placed in service after December 31, 2023, 
100 percent.’’. 
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(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 sub-
section, the term ‘pharmaceutical manufacturing 
property’ means property, equipment, buildings, or 
facilities placed in service in the United States for 
the purpose of facilitating pharmaceutical manufac-
turing. 
‘‘(a) EFFECTIVE DATE.—The amendments made by 
this section shall apply to property placed in service after 
December 31, 2022.’’. 
SEC. 3. PHARMACEUTICAL MANUFACTURING CREDIT. 
(a) IN GENERAL.—Subpart D of part IV of sub-
chapter A of chapter 1 of the Internal Revenue Code of 
1986 is amended by adding at the end the following new 
section: 
‘‘SEC. 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. 
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‘‘(b) QUALIFIED PRODUCTION ACTIVITY EXPENDI-
TURES.—For purposes of this section— 
‘‘(1) IN GENERAL.—The term ‘qualified produc-
tion activity expenditures’ means— 
‘‘(A) wages paid or incurred to an em-
ployee 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 prin-
cipal place of employment is in the United 
States), 
‘‘(B) amounts paid or incurred for any 
tangible personal property (whether or not oth-
erwise properly chargeable to capital account) 
used in the conduct of a qualified pharma-
ceutical 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 in-
curred in the conduct of a qualified pharma-
ceutical manufacturing business in the United 
States. 
‘‘(2) QUALIFIED PHARMACEUTICAL MANUFAC-
TURING BUSINESS.— 
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‘‘(A) IN
GENERAL.—The term ‘qualified 
pharmaceutical manufacturing business’ means 
the trade or business of producing pharma-
ceuticals and active pharmaceutical ingredients. 
‘‘(B) ACTIVE
PHARMACEUTICAL
INGRE-
DIENT.—The term ‘active pharmaceutical ingre-
dients’ has the meaning given to such term in 
section 207.1 of title 21, Code of Federal Regu-
lations (and any successor regulations). 
‘‘(C) PHARMACEUTICAL.—The term ‘phar-
maceutical’— 
‘‘(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 TREAT-
ED AS WAGES.— 
‘‘(A) IN GENERAL.—For purposes of para-
graph (1), the term ‘wages’ shall include so 
much of the eligible employer’s qualified health 
plan expenses as are properly allocable to such 
wages. 
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‘‘(B) 
QUALIFIED
HEALTH
PLAN
EX-
PENSES.—For purposes of this paragraph, the 
term ‘qualified health plan expenses’ means 
amounts paid or incurred by the eligible em-
ployer to provide and maintain a group health 
plan (as defined in section 5000(b)(1)), but 
only to the extent that such amounts are ex-
cluded from the gross income of employees by 
reason of section 106(a) of such Code. 
‘‘(C) ALLOCATION RULES.—For purposes 
of this paragraph, qualified health plan ex-
penses 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’ means the 50 States and the District of Co-
lumbia. 
‘‘(c) SPECIAL RULES.— 
‘‘(1) REDUCTION IN BASIS.—If a credit is de-
termined under this section with respect to any 
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