To rescue domestic medical manufacturing activity by providing incentives in economically distressed areas of the United States and its possessions.
Summary
What This Bill Does
The bill creates amend Internal Revenue Code to add Subchapter AA establishing tax credits for medical manufacturing in economically distressed zones: 40% credit on wages, fringe benefits, and depreciation, creates section 1400AA-1: 40% credit against income tax on economically distressed zone wages, allocable fringe benefits, and depreciation of qualified medical manufacturing facility property; denial of double benefit, and creates section 1400AA-2: Credit for eligible medical manufacturers purchasing products or services from economically distressed zone suppliers - 30% for unrelated parties, 5% for related parties. It relies on tax credits, definition changes, tax deductions, and compliance mandates. The main policy areas are Healthcare, Finance, and Trade.
Who Benefits and How
Population health product manufacturers could see lower costs, Pharmaceutical and medical device manufacturers could see lower costs, and Medical product manufacturers in distressed zones could see lower costs.
Who Bears the Burden and How
Federal revenue could lose revenue opportunities and Foreign medical manufacturers could face higher barriers.
Key Provisions
- Creates amend Internal Revenue Code to add Subchapter AA establishing tax credits for medical manufacturing in economically distressed zones: 40% credit on wages, fringe benefits, and depreciation.
- Creates section 1400AA-1: 40% credit against income tax on economically distressed zone wages, allocable fringe benefits, and depreciation of qualified medical manufacturing facility property; denial of double benefit...
- Creates section 1400AA-2: Credit for eligible medical manufacturers purchasing products or services from economically distressed zone suppliers - 30% for unrelated parties, 5% for related parties.
- Creates section 1400AA-3: Enhanced credit rates for repatriated medical manufacturing (60% wages, 50% purchases) and population health product facilities, with option to elect 100% bonus depreciation instead...
- Defines section 1400AA-4: Define economically distressed zones as census tracts with 30%+ poverty rate for 5 years or 25%+ with additional distress indicators; application process for designation; 15-year designation...
Evidence Chain:
This summary is generated from the full bill text using AI analysis. Expand "Detailed Analysis" below for identified beneficiaries/burden bearers with clause-level evidence links.
At a Glance
What This Bill Does
The bill creates amend Internal Revenue Code to add Subchapter AA establishing tax credits for medical manufacturing in economically distressed zones: 40% credit on wages, fringe benefits, and depreciation, creates section 1400AA-1: 40% credit against income tax on economically distressed zone wages, allocable fringe benefits, and depreciation of qualified medical manufacturing facility property; denial of double benefit, and creates section 1400AA-2: Credit for eligible medical manufacturers purchasing products or services from economically distressed zone suppliers - 30% for unrelated parties, 5% for related parties.
Key Policy Areas
Healthcare, Finance, Trade
Primary Purpose
The bill creates amend Internal Revenue Code to add Subchapter AA establishing tax credits for medical manufacturing in economically distressed zones: 40% credit on wages, fringe benefits, and depreciation, creates section 1400AA-1: 40% credit against income tax on economically distressed zone wages, allocable fringe benefits, and depreciation of qualified medical manufacturing facility property; denial of double benefit, and creates section 1400AA-2: Credit for eligible medical manufacturers purchasing products or services from economically distressed zone suppliers - 30% for unrelated parties, 5% for related parties.
Policy Domains
Section 2 - Economically distressed zones (Tax credits)
Identified Gains
- Population health product manufacturers
- Pharmaceutical and medical device manufacturers
- Medical product manufacturers in distressed zones
- Manufacturers repatriating production from foreign countries
- Medical manufacturers sourcing domestically
Identified Costs
- Federal revenue
- Foreign medical manufacturers
Sponsors
Legislative Progress
IntroducedMs. Malliotakis (for herself, Mr. Torres of New York, Ms. …
Stakeholder Effects
cui bono?How this legislation distributes effects. Mention counts reflect frequency, not effect magnitude.
Foreign medical manufacturers, Manufacturers repatriating production from foreign countries, Medical manufacturers sourcing domestically
Positive-direction: Manufacturers repatriating production from foreign countries, Medical manufacturers sourcing domestically, Medical product manufacturers in distressed zones, Pharmaceutical and medical device manufacturers, Population health product manufacturers
Negative-direction: Foreign medical manufacturers
Economically distressed communities, High-poverty census tracts including Puerto Rico
BARDA and pandemic preparedness agencies, Federal revenue
Positive-direction: BARDA and pandemic preparedness agencies
Negative-direction: Federal revenue
Suppliers in economically distressed zones
Bill Structure & Actor Mappings
Who is "The Secretary" in each section?
- "the_secretary"
- → Secretary of the Treasury
- "secretary_commerce"
- → Secretary of Commerce
- "the_secretary"
- → Secretary of Health and Human Services
Key Definitions
Terms defined in this bill
A census tract with 30%+ poverty rate for 5 years, or 25%+ poverty with additional economic distress indicators and joint designation by Treasury and Commerce secretaries
A widely available drug to diagnose, mitigate, prevent, or treat harm from non-communicable diseases combined with pandemic threats
A facility that researches, develops, or produces medical products or essential components located within an economically distressed zone
A prescription drug, exported drug, nonprescription drug, or medical device subject to FDA regulation
We use a combination of our own taxonomy and classification in addition to large language models to assess meaning and potential beneficiaries. High confidence means strong textual evidence. Always verify with the original bill text.
Learn more about our methodology