Make Medicine in America Again Act
Bill: H.R.7166 | Sponsor: Rep. Mooney, Alexander X. (R-WV)
Policy area: Taxation

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.

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 Representatives 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 MANUFACTURERS.

    (a) Allowance of Bonus Depreciation for Pharmaceutical 
Manufacturing Property.--Section 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 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' means, in the case of property 
                placed in service after December 31, 2023, 100 
                percent.''.
    (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' means property, equipment, buildings, 
        or facilities placed in service in the United States for the 
        purpose of facilitating pharmaceutical manufacturing.
    ``(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 subchapter 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.
    ``(b) Qualified Production Activity Expenditures.--For purposes of 
this section--
            ``(1) In general.--The term `qualified production activity 
        expenditures' means--
                    ``(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' means the trade 
                or business of producing pharmaceuticals and active 
                pharmaceutical ingredients.
                    ``(B) Active pharmaceutical ingredient.--The term 
                `active pharmaceutical ingredients' has the meaning 
                given to such term in section 207.1 of title 21, Code 
                of Federal Regulations (and any successor regulations).
                    ``(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' shall include so much of the eligible 
                employer's qualified health plan expenses as are 
                properly allocable to such wages.
                    ``(B) Qualified health plan expenses.--For purposes 
                of this paragraph, the term `qualified health plan 
                expenses' means amounts paid or incurred by the 
                eligible employer to provide and maintain a group 
                health plan (as defined in section 5000(b)(1)), but 
                only to the extent that such amounts are excluded 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 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' means the 50 
        States and the District of Columbia.
    ``(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'' at the end of paragraph (32), by striking 
the period at the end of paragraph (33) and inserting ``, plus'', and 
by adding at the end the following new paragraph:
            ``(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.
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