Title: Bring Entrepreneurial Advancements To Consumers Here In North America Act
Policy area: Taxation

Summary:
Bring Entrepreneurial Advancements To Consumers Here In North America Act
This bill allows accelerated depreciation of nonresidential real property acquired to relocate facilities for the manufacture of pharmaceuticals and medical devices or supplies in the United States. It also allows an exclusion from gross income of gain from the sale or exchange of relocation property that was used to manufacture medical products in a foreign country.

[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[S. 3945 Introduced in Senate (IS)]

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116th CONGRESS
  2d Session
                                S. 3945

 To amend the Internal Revenue Code of 1986 to provide incentives for 
 relocating manufacturing of pharmaceuticals and medical supplies and 
                     devices to the United States.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             June 11, 2020

  Mrs. Loeffler (for herself, Ms. Ernst, and Mr. Cruz) introduced the 
 following bill; which was read twice and referred to the Committee on 
                                Finance

_______________________________________________________________________

                                 A BILL


 
 To amend the Internal Revenue Code of 1986 to provide incentives for 
 relocating manufacturing of pharmaceuticals and medical supplies and 
                     devices to the United States.

    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 ``Bring Entrepreneurial Advancements 
To Consumers Here In North America Act''.

SEC. 2. FINDINGS.

    Congress finds as follows:
            (1) In late December 2019, authorities in the city of Wuhan 
        in China's Hubei Province reported a cluster of pneumonia cases 
        of unknown cause.
            (2) The Government of the People's Republic of China 
        eventually identified the cause of the outbreak to be a novel 
        coronavirus that would later be understood to cause a 
        respiratory illness in humans, known as COVID-19.
            (3) The pandemic spread of COVID-19 and the geographic 
        location of its origin caused reverberations in medical supply 
        chains that reached around the world.
            (4) The COVID-19 pandemic highlights the United States 
        dependency on China for critical medical supplies and 
        pharmaceutical products.
            (5) The Government of the People's Republic of China and 
        the Chinese Communist Party prioritize state support for 
        biotechnology manufacturing as a strategic industry under the 
        ``Made in China 2025'' initiative.
            (6) According to the United States Food and Drug 
        Administration, as of 2018, China is the largest exporter of 
        medical devices and the second largest exporter of drugs and 
        biologics to the United States.
            (7) Chinese pharmaceutical companies produce more than 90 
        percent of the supply of antibiotics, vitamin C, ibuprofen, and 
        hydrocortisone in the United States.
            (8) In March 2020, Xinhua News Service, a Chinese state-
        controlled news agency, reprinted an article insinuating that 
        if China were to announce its ``strategic control'' of medical 
        products and ban exports to the United States, ``the United 
        States would be plunged into the vast ocean of novel 
        coronavirus.''
            (9) The ability of the Government of the People's Republic 
        of China and the Chinese Communist Party to control the medical 
        supply chain poses a risk to the national security of the 
        United States.
            (10) Companies should be incentivized through a competitive 
        tax structure to manufacture and produce pharmaceuticals and 
        medical devices in the United States.

SEC. 3. TAX INCENTIVES FOR RELOCATING MANUFACTURING OF PHARMACEUTICALS 
              AND MEDICAL SUPPLIES AND DEVICES TO THE UNITED STATES.

    (a) Accelerated Depreciation for Nonresidential Real Property.--
Section 168 of the Internal Revenue Code of 1986 is amended by adding 
at the end the following new subsection:
    ``(n) Accelerated Depreciation for Nonresidential Real Property 
Acquired in Connection With the Relocation of Manufacturing of 
Pharmaceuticals and Medical Supplies and Devices to the United 
States.--
            ``(1) Treatment as 20-year property.--For purposes of this 
        section, qualified nonresidential real property shall be 
        treated as 20-year property.
            ``(2) Application of bonus depreciation.--For application 
        of bonus depreciation to qualified nonresidential real 
        property, see subsection (k).
            ``(3) Qualified nonresidential real property.--For purposes 
        of this subsection, the term `qualified nonresidential real 
        property' means nonresidential real property placed in service 
        in the United States by a qualified manufacturer if such 
        property is acquired by such qualified manufacturer in 
        connection with a qualified relocation of manufacturing.
            ``(4) Qualified manufacturer.--For purposes of this 
        subsection, the term `qualified manufacturer' means any person 
        engaged in the trade or business of manufacturing a qualified 
        medical product.
            ``(5) Qualified medical product.--For purposes of this 
        subsection, the term `qualified medical product' means any 
        pharmaceutical, medical device, or medical supply.
            ``(6) Qualified relocation of manufacturing.--For purposes 
        of this subsection--
                    ``(A) In general.--The term `qualified relocation 
                of manufacturing' means, with respect to any qualified 
                manufacturer, the relocation of the manufacturing of a 
                qualified medical product from a foreign country to the 
                United States.
                    ``(B) Relocation of property not required.--For 
                purposes of subparagraph (A), manufacturing shall not 
                fail to be treated as relocated merely because property 
                used in such manufacturing was not relocated.
                    ``(C) Relocation of not less than equivalent 
                productive capacity required.--For purposes of 
                subparagraph (A), manufacturing shall not be treated as 
                relocated unless the property manufactured in the 
                United States is substantially identical to the 
                property previously manufactured in a foreign country 
                and the increase in the units of production of such 
                property in the United States by the qualified 
                manufacturer is not less than the reduction in the 
                units of production of such property in such foreign 
                country by such qualified manufacturer.
            ``(7) Application to possessions of the united states.--For 
        purposes of this subsection, the term `United States' includes 
        any possession of the United States.''.
    (b) Exclusion of Gain on Disposition of Property in Connection With 
Qualified Relocation of Manufacturing.--
            (1) In general.--Part III of subchapter B of chapter 1 of 
        such Code is amended by inserting after section 139H the 
        following new section:

``SEC. 139I. EXCLUSION OF GAIN ON DISPOSITION OF PROPERTY IN CONNECTION 
              WITH QUALIFIED RELOCATION OF MANUFACTURING.

    ``(a) In General.--In the case of a qualified manufacturer, gross 
income shall not include gain from the sale or exchange of qualified 
relocation disposition property.
    ``(b) Qualified Relocation Disposition Property.--For purposes of 
this section, the term `qualified relocation disposition property' 
means any property which--
            ``(1) is sold or exchanged by a qualified manufacturer in 
        connection with a qualified relocation of manufacturing, and
            ``(2) was used by such qualified manufacturer in the trade 
        or business of manufacturing a qualified medical product in the 
        foreign country from which such manufacturing is being 
        relocated.
    ``(c) Other Terms.--Terms used in this section which are also used 
in subsection (n) of section 168 shall have the same meaning when used 
in this section as when used in such subsection.''.
            (2) Clerical amendment.--The table of sections for part III 
        of subchapter B of chapter 1 of such Code is amended by 
        inserting after the item relating to section 139H the following 
        new item:

``Sec. 139I. Exclusion of gain on disposition of property in connection 
                            with qualified relocation of 
                            manufacturing.''.
    (c) Effective Dates.--
            (1) Accelerated depreciation.--The amendment made by 
        subsection (a) shall apply to property placed in service after 
        the date of the enactment of this Act.
            (2) Exclusion of gain.--The amendments made by subsection 
        (b) shall apply to sales and exchanges after the date of the 
        enactment of this Act.
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