Legislation sponsored by U.S. Rep. Brad Wenstrup (R-OH) would authorize federal tax credits to help secure America’s medical supply chains and create high-paying jobs in the nation’s medical sector by incentivizing the state-side manufacturing of medicines.
The congressman said on Tuesday he was proud to introduce the legislation, “… which supports the creation of new medical manufacturing jobs in the United States while also helping to create a stable domestic supply of critical drugs and medical supplies that are crucial to the health and safety of American patients.”
The American Made Medicine Act, H.R. 7410, which is cosponsored by U.S. Rep. Drew Ferguson (R-GA), would provide for credits against tax for domestic medical and drug manufacturing and advanced medical manufacturing equipment.
“We never should have gotten to a place where we are reliant on China and other strategic adversaries for our nation’s PPE, pharmaceuticals, and medical devices,” Rep. Wenstrup said. “The COVID-19 pandemic revealed these critical vulnerabilities in America’s medical supply chains. America can and should continue to be the world’s leader in medical innovation and advanced medical manufacturing.”
If enacted, H.R. 7410 would lower the tax rate on the income attributable to the domestic manufacturing and sales of active pharmaceutical ingredients and medical countermeasures, according to a bill summary provided by Rep. Wenstrup’s staff.
Among several provisions, the bill also would provide a 30 percent investment tax credit that phases out over 10 years for investments in advanced manufacturing equipment or machinery used in the U.S. to manufacture drugs, medical devices or biological products; and provide a 30 percent investment tax credit that phases out over 10 years for investments in equipment/property that is used to meet emissions standards under the Clean Air Act or the Clean Water Act, the summary says.
H.R. 7410 has been referred to the U.S. House Ways and Means Committee for consideration.