[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[H.R. 7166 Introduced in House (IH)]
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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 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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