I 
118TH CONGRESS 
1ST SESSION H. R. 2707 
To mitigate drug shortages and provide incentives for maintaining, expanding, 
and relocating the manufacturing of active pharmaceutical ingredients, 
excipients, medical diagnostic devices, pharmaceuticals, and personal pro-
tective equipment in the United States, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
APRIL 19, 2023 
Mr. CARTER of Georgia (for himself, Mr. SOTO, Mrs. MILLER of West Vir-
ginia, Mr. CARTWRIGHT, Mr. HUDSON, Mr. BILIRAKIS, Mr. GRIFFITH, 
Mr. BALDERSON, Mr. VAN DREW, Mr. CRAWFORD, Mrs. HARSHBARGER, 
and Mr. LANGWORTHY) introduced the following bill; which was referred 
to the Committee on Ways and Means 
A BILL 
To mitigate drug shortages and provide incentives for main-
taining, expanding, and relocating the manufacturing of 
active pharmaceutical ingredients, excipients, medical di-
agnostic devices, pharmaceuticals, and personal protec-
tive equipment in the United States, and for other pur-
poses. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
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SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Manufacturing API, 
Drugs, and Excipients in America Act’’ or the ‘‘MADE 
in America Act’’. 
SEC. 2. CREDIT FOR PHARMACEUTICAL AND MEDICAL DE-
VICE 
PRODUCTION 
ACTIVITIES 
IN 
DIS-
TRESSED ZONES. 
(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. 45BB. DISTRESSED ZONE PHARMACEUTICAL AND 
MEDICAL DEVICE PRODUCTION CREDIT. 
‘‘(a) IN GENERAL.—For purposes of section 38, the 
distressed zone pharmaceutical and medical device produc-
tion credit for the taxable year shall be an amount equal 
to the applicable percentage of the qualified production ac-
tivity expenditures of the taxpayer for the taxable year. 
‘‘(b) APPLICABLE PERCENTAGE.—For purposes of 
this section— 
‘‘(1) IN GENERAL.—Except as provided in para-
graph (2), the term ‘applicable percentage’ means 
25 percent. 
‘‘(2) INCREASED AMOUNT WHERE EMPLOYEES 
RESIDE IN DISTRESSED ZONE.—In the case of any 
qualified pharmaceutical or medical device produc-
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tion business a substantial portion of the employees 
of which reside in a distressed zone, the applicable 
percentage shall be 30 percent. 
‘‘(c) 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 or diagnostic medical device 
production business in a distressed zone (but 
only if the employee’s principal place of employ-
ment is in a distressed zone), and 
‘‘(B) qualified pharmaceutical or medical 
device production expenditures. 
‘‘(2) QUALIFIED PHARMACEUTICAL OR MEDICAL 
DEVICE PRODUCTION BUSINESS.— 
‘‘(A) IN
GENERAL.—The term ‘qualified 
pharmaceutical or medical device production 
business’ means the trade or business of pro-
ducing qualified pharmaceuticals in commercial 
quantities. 
‘‘(B) QUALIFIED PHARMACEUTICALS.— 
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‘‘(i) IN GENERAL.—The term ‘quali-
fied 
pharmaceuticals’ 
means 
pharma-
ceuticals, active pharmaceutical ingredi-
ents, excipients, medical diagnostic devices, 
or personal protective equipment. 
‘‘(ii) PHARMACEUTICAL.—The term 
‘pharmaceuticals’— 
‘‘(I) means any drug (as defined 
in section 201 of the Federal Food, 
Drug, and Cosmetic Act), and 
‘‘(II) includes a biological prod-
uct (as defined in section 351 of the 
Public Health Service Act). 
‘‘(iii) ACTIVE
PHARMACEUTICAL
IN-
GREDIENT.—The term ‘active pharma-
ceutical ingredients’ has the meaning given 
to such term in section 207.1 of title 21, 
Code of Federal Regulations (or any suc-
cessor regulations). 
‘‘(iv) EXCIPIENT.—The term ‘excip-
ient’— 
‘‘(I) means any inactive ingre-
dient that is intentionally added to a 
pharmaceutical that is not intended to 
exert therapeutic effects at the in-
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tended dosage, other than by acting to 
improve product delivery, and 
‘‘(II) includes any such filler, ex-
tenders, diluent, wetting agent, sol-
vent, emulsifier, preservative, flavor, 
absorption enhancer, sustained release 
matrix, and coloring agent. 
‘‘(v) MEDICAL DIAGNOSTIC DEVICE.— 
The term ‘medical diagnostic device’ means 
any device (as defined in section 201(h) of 
the Federal Food, Drug, and Cosmetic 
Act) intended for use in the diagnosis of 
disease or other conditions. 
‘‘(vi) PERSONAL PROTECTIVE EQUIP-
MENT.—The 
term 
‘personal 
protective 
equipment’ means— 
‘‘(I) any device (as defined in 
section 201(h) of the Federal Food, 
Drug, and Cosmetic Act) that is a 
face mask, filtering facepiece res-
pirator, face shield, surgical mask, 
gown, other apparel, or glove that is 
intended for a medical purpose, and 
‘‘(II) any particulate filtering air 
purifying respiratory protective device 
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that is approved by the National In-
stitute for Occupational Safety and 
Health under part 84 of title 42, Code 
of Federal Regulations (or successor 
regulations). 
‘‘(3) CERTAIN HEALTH PLAN EXPENSES TREAT-
ED AS WAGES.— 
‘‘(A) IN
GENERAL.—The term ‘wages’ 
shall include so much of the eligible employer’s 
qualified health plan expenses as are properly 
allocable to such wages. 
‘‘(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, 
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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) QUALIFIED PHARMACEUTICAL OR MEDICAL 
DEVICE PRODUCTION EXPENDITURES.— 
‘‘(A) DEFINITION.—The term ‘qualified 
pharmaceutical or medical device production ex-
penditures’ means amounts paid or incurred 
(whether or not chargeable to capital account) 
for qualified property used in the conduct of a 
qualified pharmaceutical or medical device pro-
duction business in a distressed zone (but only 
if the primary use of such property is in a dis-
tressed zone). 
‘‘(B) QUALIFIED PROPERTY.— 
‘‘(i) IN GENERAL.—The term ‘quali-
fied property’ means any tangible personal 
property (other than a building or its 
structural components) used in the conduct 
of a qualified pharmaceutical or medical 
device production business in a distressed 
zone (but only if the primary use of such 
property is in a distressed zone). 
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‘‘(ii) EXCEPTION.—Such term shall 
not include any property described in sec-
tion 50(b) (determined as if the United 
States included Puerto Rico). 
‘‘(d) DISTRESSED ZONE.—For purposes of this sec-
tion, the term ‘distressed zone’ means a population census 
tract which— 
‘‘(1) has been designated as a qualified oppor-
tunity zone under section 1400Z–1, and 
‘‘(2) has a poverty rate in excess of 30 percent 
for the calendar year prior to the calendar year that 
includes the date of enactment of this section. 
‘‘(e) SPECIAL RULES.— 
‘‘(1) APPLICATION TO UNITED STATES SHARE-
HOLDERS
OF
CONTROLLED
FOREIGN
CORPORA-
TIONS.— 
‘‘(A) IN GENERAL.—In the case of a do-
mestic corporation that is a United States 
shareholder of a qualified controlled foreign cor-
poration, the credit under subsection (a) (deter-
mined without regard to this paragraph) shall 
be increased by an amount equal to 30 percent 
of the corporation’s pro rata share (determined 
under rules similar to the rules of section 
951(a)(2)) of qualified production activity ex-
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penditures of such controlled foreign corpora-
tion for the taxable year of the qualified con-
trolled foreign corporation ending with or with-
in the taxable year of the domestic corporation. 
‘‘(B) QUALIFIED CORPORATION.—For pur-
poses of subparagraph (A), the term ‘qualified 
controlled foreign corporation’ means, for any 
taxable year, a controlled foreign corporation 
which does not have gross income that is effec-
tively connected with the conduct of a trade or 
business within the United States for such tax-
able year. 
‘‘(2) REDUCTION IN BASIS.—If a credit is de-
termined under this section with respect to any 
property by reason of any qualified production activ-
ity expenditures described in subsection (b)(1)(B), 
the basis of such property shall be reduced by the 
amount of the credit so determined. 
‘‘(3) 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. 
‘‘(f) RECAPTURE.— 
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‘‘(1) IN GENERAL.—If, during any taxable year, 
property taken into account under subsection 
(c)(1)(B) is disposed of, or otherwise ceases to be 
used by the taxpayer in the active trade or business 
of producing qualified pharmaceuticals in commer-
cial quantities, before the close of the recapture pe-
riod, then the tax under this chapter for such tax-
able year shall be increased by the recapture per-
centage of the aggregate decrease in the credits al-
lowed under section 38 for all prior taxable years 
which would have resulted solely from reducing to 
zero any credit determined under this section with 
respect to such property. 
‘‘(2) RECAPTURE PERCENTAGE.—For purposes 
of subparagraph (A), the recapture percentage shall 
be determined in the same manner as under section 
50(a)(1)(B). 
‘‘(3) APPLICATION TO UNITED STATES SHARE-
HOLDERS.—In the case of any taxpayer to whom a 
credit is allowed by reason of subsection (e)(1), 
paragraph (1) shall be applied by substituting ‘the 
controlled foreign corporation with respect to which 
the taxpayer is a United States shareholder’ for ‘the 
taxpayer’. 
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‘‘(4) APPLICATION
OF
OTHER
RULES.—For 
purposes of this paragraph, rules similar to the rules 
of paragraphs (3), (4), and (5) (other than subpara-
graph (A) thereof) of section 50(a)(1) shall apply.’’. 
(b) CREDIT ALLOWED AGAINST ALTERNATIVE MIN-
IMUM 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 sec-
tion 45BB,’’. 
(c) CREDIT ALLOWED AGAINST BASE EROSION 
ANTI-ABUSE
TAX.—Section 59A(b)(1)(B)(ii) of such 
Code is amended by striking ‘‘plus’’ at the end of sub-
clause (I), by redesignating subclause (II) as subclause 
(III), and by inserting after subclause (I) (as so amended) 
the following new subclause: 
‘‘(II) the credit allowed under 
section 38 for the taxable year which 
is properly allocable to the distressed 
zone pharmaceutical and medical de-
vice 
production 
credit 
determined 
under section 45BB(a), plus’’. 
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(d) DENIAL OF DEDUCTION.—Section 280C of such 
Code is amended by adding at the end the following new 
subsection: 
‘‘(i) DISTRESSED
ZONE
PHARMACEUTICAL
AND 
MEDICAL DEVICE PRODUCTION CREDIT.—No deduction 
shall be allowed for that portion of the qualified produc-
tion activity expenditures (as defined in section 45BB(b)) 
otherwise allowable as a deduction for the taxable year 
which is equal to the amount of the distressed zone phar-
maceutical and medical device production credit deter-
mined for such taxable year under section 45BB(a).’’. 
(e) PART OF GENERAL BUSINESS CREDIT.—Section 
38(b) of such Code is amended by striking ‘‘plus’’ at the 
end of paragraph (40), by striking the period at the end 
of paragraph (41) and inserting ‘‘, plus’’, and by adding 
at the end the following new paragraph: 
‘‘(42) the distressed zone pharmaceutical and 
medical device production credit determined under 
section 45BB(a).’’. 
(f) 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. 45BB. Distressed zone pharmaceutical and medical device production 
credit.’’. 
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(g) EFFECTIVE DATE.—The amendments made by 
this section shall apply to amounts paid or incurred after 
the date of the enactment of this Act. 
Æ 
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