‘‘(3) LIMITATION.—The amount which is treat-
ed as the qualified investment for all taxable years 
with respect to any qualifying infant formula manu-
facturing project shall not exceed the amount des-
ignated by the Secretary as eligible for the credit. 
‘‘(c) DEFINITIONS.—For purposes of this section— 
‘‘(1) ELIGIBLE TAXPAYER.— 
‘‘(A) IN GENERAL.—For purposes of this 
section, the term ‘eligible taxpayer’ means a 
taxpayer if such taxpayer’s total global revenue 
for the calendar year that precedes the calendar 
year in which the taxpayer submits an applica-
tion under subsection (d)(1)(A) does not exceed 
$750,000,000. 
‘‘(B) AGGREGATION RULES.—For purposes 
of this paragraph, all persons which are treated 
as a single employer under subsections (a) and 
(b) of section 52 shall be treated as a single 
taxpayer. 
‘‘(2) QUALIFYING INFANT FORMULA MANUFAC-
TURING PROJECT.—The term ‘qualifying infant for-
mula manufacturing project’ means a project, any 
portion of the qualified investment of which is cer-
tified by the Secretary under subsection (d) as eligi-
ble for a credit under this section, which re-equips, 
VerDate Sep 11 2014 
20:38 Mar 21, 2025
Jkt 059200
PO 00000
Frm 00003
Fmt 6652
Sfmt 6201
E:\BILLS\H2008.IH
H2008
kjohnson on DSK7ZCZBW3PROD with $$_JOB
expands, or establishes a facility for the manufac-
ture of eligible infant formula. 
‘‘(3) ELIGIBLE PROPERTY.—The term ‘eligible 
property’ means any property— 
‘‘(A) which is necessary for the manufac-
ture of eligible infant formula, 
‘‘(B) which is— 
‘‘(i) tangible personal property, or 
‘‘(ii) other tangible property (not in-
cluding a building or its structural compo-
nents), but only if such property is used as 
an integral part of a facility described in 
paragraph (2), and 
‘‘(C) with respect to which depreciation (or 
amortization in lieu of depreciation) is allow-
able. 
‘‘(4) ELIGIBLE INFANT FORMULA.—The term 
‘eligible infant formula’ means infant formula that— 
‘‘(A) may lawfully be sold in the United 
States, and 
‘‘(B) is manufactured in the United States. 
‘‘(d) CERTIFICATION.— 
‘‘(1) IN GENERAL.— 
‘‘(A) ESTABLISHMENT.—Not later than 
180 days after the date of the enactment of this 
VerDate Sep 11 2014 
20:38 Mar 21, 2025
Jkt 059200
PO 00000
Frm 00004
Fmt 6652
Sfmt 6201
E:\BILLS\H2008.IH
H2008
kjohnson on DSK7ZCZBW3PROD with $$_JOB
section, the Secretary shall establish a quali-
fying infant formula manufacturing project pro-
gram to consider and award certifications for 
qualified investments eligible for credits under 
this section to qualifying infant formula manu-
facturing projects. 
‘‘(B) APPLICATION PERIOD.—Each appli-
cant for certification under this paragraph shall 
submit an application— 
‘‘(i) certifying that not less than 50 
percent of the eligible infant formula man-
ufactured using the eligible property to 
which such application relates during the 
1-year period beginning on the date on 
which the qualifying infant formula manu-
facturing project is placed in service shall 
be sold for use in the United States, and 
‘‘(ii) containing such information as 
the Secretary shall require. 
‘‘(C) TIME TO MEET CRITERIA FOR CER-
TIFICATION.—Each applicant for certification 
shall have 1 year from the date of acceptance 
by the Secretary of the application during 
which to provide to the Secretary evidence that 
VerDate Sep 11 2014 
20:38 Mar 21, 2025
Jkt 059200
PO 00000
Frm 00005
Fmt 6652
Sfmt 6201
E:\BILLS\H2008.IH
H2008
kjohnson on DSK7ZCZBW3PROD with $$_JOB
the requirements of the certification have been 
met. 
‘‘(D) PERIOD OF ISSUANCE.—An applicant 
which receives a certification shall have 3 years 
from the date of issuance of the certification in 
order to place the project in service and if such 
project is not placed in service by that time pe-
riod, then the certification shall no longer be 
valid. 
‘‘(2) LIMITATIONS.— 
‘‘(A) PROJECT AMOUNT.—The amount of 
credit that may be allocated under paragraph 
(1) shall not exceed $150,000,000. 
‘‘(B) AGGREGATE
AMOUNT.—The total 
amount of credits that may be allocated under 
paragraph (1) shall not exceed $750,000,000. 
‘‘(C) SUNSET.—The Secretary may not al-
locate any credit dollar amount with respect to 
any project that commences construction after 
the date that is 10 years after the date of the 
enactment of this section. 
‘‘(3) REVIEW AND REDISTRIBUTION.— 
‘‘(A) REVIEW.—Not later than 4 years 
after the date of enactment of this section, the 
VerDate Sep 11 2014 
20:38 Mar 21, 2025
Jkt 059200
PO 00000
Frm 00006
Fmt 6652
Sfmt 6201
E:\BILLS\H2008.IH
H2008
kjohnson on DSK7ZCZBW3PROD with $$_JOB
Secretary shall review the credits allocated 
under this section as of such date. 
‘‘(B) 
REDISTRIBUTION.—The 
Secretary 
may reallocate credits awarded under this sec-
tion if the Secretary determines that— 
‘‘(i) there is an insufficient quantity 
of qualifying applications for certification 
pending at the time of the review, or 
‘‘(ii) any certification made pursuant 
to paragraph (1) has been revoked pursu-
ant to paragraph (1)(B) because the 
project subject to the certification has been 
delayed as a result of third party opposi-
tion or litigation to the proposed project. 
‘‘(C) REALLOCATION.—If the Secretary de-
termines that credits under this section are 
available for reallocation pursuant to the re-
quirements set forth in subparagraph (B), the 
Secretary is authorized to conduct an additional 
program for applications for certification. 
‘‘(4) DISCLOSURE OF ALLOCATIONS.—The Sec-
retary shall, upon making a certification under this 
subsection, publicly disclose the identity of the appli-
cant and the amount of the credit with respect to 
such applicant. 
VerDate Sep 11 2014 
20:38 Mar 21, 2025
Jkt 059200
PO 00000
Frm 00007
Fmt 6652
Sfmt 6201
E:\BILLS\H2008.IH
H2008
kjohnson on DSK7ZCZBW3PROD with $$_JOB
‘‘(e) RECAPTURE.— 
‘‘(1) IN GENERAL.—If during the recapture pe-
riod there is a recapture event, then the tax imposed 
by this chapter for the taxable year in which such 
recapture period ends shall be increased by the sum 
of— 
‘‘(A) the aggregate decrease in the credits 
allowed to the taxpayer under section 38 for all 
prior taxable years which would have resulted if 
no credit had been determined under this sec-
tion with respect to the qualifying infant for-
mula manufacturing project, plus 
‘‘(B) interest at the underpayment rate es-
tablished under section 6621 on the amount de-
termined under subparagraph (A) for each 
prior taxable year for the period beginning on 
the due date for filing the return for the prior 
taxable year involved. 
‘‘(2) RECAPTURE EVENT.—For purposes of this 
subsection, the term ‘recapture event’ means— 
‘‘(A) a failure by the taxpayer to meet the 
requirements of the certification made by the 
taxpayer under subsection (d)(1)(A)(i), or 
‘‘(B) any property with respect to which an 
allocation was made under this section ceases to 
VerDate Sep 11 2014 
20:38 Mar 21, 2025
Jkt 059200
PO 00000
Frm 00008
Fmt 6652
Sfmt 6201
E:\BILLS\H2008.IH
H2008
kjohnson on DSK7ZCZBW3PROD with $$_JOB
be eligible property which is part of a qualifying 
infant formula manufacturing project. 
‘‘(3) RECAPTURE
PERIOD.—For purposes of 
this subsection, the term ‘recapture period’ means 
the 1-year period beginning on the date on which a 
qualifying infant formula manufacturing project 
with respect to which an allocation is made under 
this section is placed in service. 
‘‘(4) NO DEDUCTION FOR INTEREST.—No de-
duction shall be allowed under this chapter for inter-
est described in paragraph (1)(B). 
‘‘(5) SPECIAL RULES.— 
‘‘(A) TAX
BENEFIT
RULE.—The tax for 
the taxable year shall be increased under para-
graph (1) only with respect to credits allowed 
by reason of this section which were used to re-
duce tax liability. In the case of credits not so 
used to reduce tax liability, the carryforwards 
and carrybacks under section 39 shall be appro-
priately adjusted. 
‘‘(B) NO CREDITS AGAINST TAX.—Any in-
crease in tax under this subsection shall not be 
treated as a tax imposed by this chapter for 
purposes of determining the amount of any 
VerDate Sep 11 2014 
20:38 Mar 21, 2025
Jkt 059200
PO 00000
Frm 00009
Fmt 6652
Sfmt 6201
E:\BILLS\H2008.IH
H2008
kjohnson on DSK7ZCZBW3PROD with $$_JOB
credit under this chapter or for purposes of sec-
tion 55. 
‘‘(f) COORDINATION WITH REHABILITATION CRED-
IT.—The qualified investment with respect to any quali-
fying infant formula manufacturing project for any tax-
able year shall not include that portion of the basis of any 
project which is attributable to qualified rehabilitation ex-
penditures (as defined in section 47(c)(2)). 
‘‘(g) REGULATIONS.—The Secretary shall issue such 
regulations or other guidance as may be necessary or ap-
propriate to carry out the purposes of this section, includ-
ing regulations providing for the appropriate conversion 
of quantities of liquid concentrate eligible infant formula 
to pounds of dry eligible formula.’’. 
(b) INCLUSION IN INVESTMENT CREDIT.—Section 46 
of such Code is amended— 
(1) in paragraph (5) by striking ‘‘and’’ at the 
end, 
(2) in paragraph (6), by striking the period and 
inserting ‘‘, and’’, and 
(3) by adding after paragraph (6) the following 
new paragraph: 
‘‘(7) the domestic infant formula manufacturing 
investment credit.’’. 
VerDate Sep 11 2014 
20:38 Mar 21, 2025
Jkt 059200
PO 00000
Frm 00010
Fmt 6652
Sfmt 6201
E:\BILLS\H2008.IH
H2008
kjohnson on DSK7ZCZBW3PROD with $$_JOB
(c) 
CREDIT
MADE
TRANSFERABLE.—Section 
6418(f)(1) of such Code is amended by adding at the end 
the following new clause: 
‘‘(xii) The domestic infant formula 
manufacturing investment credit deter-
mined under section 48F.’’. 
(d) ELECTIVE
PAYMENT
OF
CREDIT.—Section 
6417(b) of such Code is amended by adding at the end 
the following new paragraph: 
‘‘(13) The domestic infant formula manufac-
turing investment credit determined under section 
48F.’’. 
(e) CERTAIN NONRECOURSE FINANCING EXCLUDED 
FROM CREDIT BASE.—Section 49(a)(1)(C) of such Code 
is amended by striking ‘‘and’’ at the end of clause (v), 
by striking the period at the end of clause (vi) and insert-
ing ‘‘, and’’, and by adding at the end the following new 
clause: 
‘‘(vii) the basis of any eligible prop-
erty (as defined in section 48F(c)(3)) 
which is part of a qualifying infant for-
mula manufacturing project under section 
48F.’’. 
(f) CLERICAL AMENDMENT.—The table of sections 
for subpart E of part IV of subchapter A of chapter 1 
VerDate Sep 11 2014 
20:38 Mar 21, 2025
Jkt 059200
PO 00000
Frm 00011
Fmt 6652
Sfmt 6201
E:\BILLS\H2008.IH
H2008
kjohnson on DSK7ZCZBW3PROD with $$_JOB
of such Code is amended by inserting after the item relat-
ing to section 48E the following new item: 
‘‘Sec. 48F. Domestic infant formula manufacturing investment credit.’’. 
(g) EFFECTIVE DATE.—The amendments made by 
this section shall apply to projects the construction of 
which commences after the date of the enactment of this 
Act. 
SEC. 3. INFANT FORMULA PRODUCTION CREDIT. 
(a) IN GENERAL.—Subpart D of part IV of sub-
chapter A of the Internal Revenue Code of 1986 is amend-
ed by adding at the end the following new section: 
‘‘SEC. 45BB. INFANT FORMULA PRODUCTION CREDIT. 
‘‘(a) IN GENERAL.—In the case of a qualified tax-
payer, for purposes of section 38, the infant formula pro-
duction credit for any taxable year is an amount equal 
to the product of— 
‘‘(1) the amount in pounds (determined con-
sistent with regulations issued under section 48F(g) 
with respect to liquid concentrate) of eligible infant 
formula manufactured by such taxpayer and sold for 
use in the United States during such taxable year, 
multiplied by 
‘‘(2) $2. 
‘‘(b) QUALIFIED TAXPAYER.—For purposes of this 
section, the term ‘qualified taxpayer’ means, with respect 
to a taxable year— 
VerDate Sep 11 2014 
20:38 Mar 21, 2025
Jkt 059200
PO 00000
Frm 00012
Fmt 6652
Sfmt 6201
E:\BILLS\H2008.IH
H2008
kjohnson on DSK7ZCZBW3PROD with $$_JOB
‘‘(1) a taxpayer if such taxpayer’s total global 
revenue for the preceding taxable year does not ex-
ceed $750,000,000, or 
‘‘(2) a taxpayer to whom a credit was allowed 
under this section in the preceding taxable year. 
‘‘(c) ELIGIBLE INFANT FORMULA DEFINED.—For 
purposes of this section, the term ‘eligible infant formula’ 
has the meaning given such term in section 48F. 
‘‘(d) LIMITATIONS.— 
‘‘(1) MAXIMUM
AMOUNT
OF
FORMULA.—For 
purposes of determining the amount of the credit 
under subsection (a), the amount of eligible infant 
formula determined under subsection (a) with re-
spect to any taxable year shall not exceed 
18,000,000 pounds. 
‘‘(2) 5-YEAR LIMITATION.—No credit shall be 
allowed under subsection (a) to a taxpayer for a tax-
able year unless— 
‘‘(A) no credit has been allowed to such 
taxpayer in any prior taxable year, or 
‘‘(B) such taxable year occurs during the 5 
taxable year period beginning on the first day 
of the first taxable year for which a credit was 
allowed under subsection (a) to such taxpayer. 
VerDate Sep 11 2014 
20:38 Mar 21, 2025
Jkt 059200
PO 00000
Frm 00013
Fmt 6652
Sfmt 6201
E:\BILLS\H2008.IH
H2008
kjohnson on DSK7ZCZBW3PROD with $$_JOB
‘‘(e) AGGREGATION RULES.—For purposes of this 
section, all persons which are treated as a single employer 
under subsections (a) and (b) of section 52 shall be treated 
as a single taxpayer. 
‘‘(f) COORDINATION WITH INVESTMENT CREDIT.— 
Infant formula produced at a facility with respect to which 
a credit was allowed under section 48F shall not be taken 
into account for purposes of subsection (a).’’. 
(b) 
CREDIT
MADE
TRANSFERABLE.—Section 
6418(f)(1) of such Code (as amended by section 2) is 
amended by adding at the end the following new clause: 
‘‘(xiii) The infant formula production 
credit determined under section 45BB.’’. 
(c) ELECTIVE
PAYMENT
OF
CREDIT.—Section 
6417(b) of such Code (as amended by section 2) is amend-
ed by adding at the end the following new paragraph: 
‘‘(14) The infant formula production credit de-
termined under section 45BB.’’. 
(d) CREDIT ALLOWED AS PART OF GENERAL BUSI-
NESS CREDIT.—Section 38(b) of such Code is amended 
by striking ‘‘plus’’ at the end of paragraph (40), by strik-
ing the period at the end of paragraph (41) and inserting 
‘‘, plus’’, and by adding at the end the following new para-
graph: 
VerDate Sep 11 2014 
20:38 Mar 21, 2025
Jkt 059200
PO 00000
Frm 00014
Fmt 6652
Sfmt 6201
E:\BILLS\H2008.IH
H2008
kjohnson on DSK7ZCZBW3PROD with $$_JOB
‘‘(42) the infant formula production credit de-
termined under section 45BB(a).’’. 
(e) CLERICAL AMENDMENT.—The table of sections 
for subpart D of part IV of subchapter A of the Internal 
Revenue Code of 1986 is amended by adding at the end 
the following new item: 
‘‘Sec. 45BB. Infant formula production credit.’’. 
(f) EFFECTIVE DATE.—The amendments made by 
this section shall apply to formula manufactured after the 
date of the enactment of this Act. 
Æ 
VerDate Sep 11 2014 
20:38 Mar 21, 2025
Jkt 059200
PO 00000
Frm 00015
Fmt 6652
Sfmt 6301
E:\BILLS\H2008.IH
H2008
kjohnson on DSK7ZCZBW3PROD with $$_JOB