[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[H.R. 8504 Introduced in House (IH)]
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118th CONGRESS
2d Session
H. R. 8504
To amend the Internal Revenue Code of 1986 to establish the critical
supply chains reshoring investment tax credit.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
May 22, 2024
Ms. Malliotakis (for herself, Mr. Pascrell, Mr. Moylan, Mr. Bilirakis,
Mr. Lawler, Ms. Velazquez, and Mr. Kelly of Pennsylvania) 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 establish the critical
supply chains reshoring investment tax credit.
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 ``Supply Chain Security and Growth Act
of 2024''.
SEC. 2. CRITICAL SUPPLY CHAINS RESHORING INVESTMENT CREDIT.
(a) In General.--Subpart E of part IV of subchapter A of the
Internal Revenue Code of 1986 is amended by inserting after section 48E
the following new section:
``SEC. 48F. CRITICAL SUPPLY CHAINS RESHORING INVESTMENT CREDIT.
``(a) In General.--For purposes of section 46, in the case of a
qualifying taxpayer, the critical supply chains reshoring investment
credit is an amount equal to 40 percent of the qualified investment
with respect to any critical supply chain facility placed in service
during such taxable year.
``(b) Qualified Investment.--For purposes of subsection (a), the
qualified investment with respect to any critical supply chain facility
for any taxable year is an amount equal to the basis of any qualified
property placed in service by the taxpayer during such taxable year
which is part of a such facility.
``(c) Qualifying Property.--For purposes of this section, the term
`qualifying property' means property--
``(1) that is integral to the operation of a critical
supply chain facility,
``(2) that is tangible property,
``(3) with respect to which depreciation (or amortization
in lieu of depreciation) is allowable, and
``(4) which is--
``(A) constructed, reconstructed, or erected by the
taxpayer, or
``(B) acquired by the taxpayer if the original use
of such property commences with the taxpayer.
``(d) Critical Supply Chain Facility.--
``(1) In general.--For purposes of this section, the term
`critical supply chain facility' means a facility--
``(A) the primary purpose of which is the
manufacturing of--
``(i) An active pharmaceutical ingredient
(as defined in section 2017.1 of title 21, Code
of Federal Regulations (or any successor
regulations)),
``(ii) A drug (as defined in section 201(g)
of the Federal Food, Drug, and Cosmetic Act),
``(iii) A biological product (as defined in
section 351(i)(1) of the Public Health Service
Act),
``(iv) A medical countermeasure (as defined
in section 319F-3(i)(1) of the Public Health
Service Act),
``(v) A medical diagnostic device (as
defined in section 201(h) of the Federal Food,
Drug, and Cosmetic Act) intended for use in the
diagnosis of disease or other conditions,
``(vi) Semiconductors or semiconductor
manufacturing equipment,
``(vii) Aerospace equipment as defined
under North American Industry Classification
Code 3364,
``(viii) Artificial nanomaterials, and
``(B) located in a `specified possession' within
the meaning of section 937(c) or Puerto Rico.
``(e) Reconstructed Property.--Property shall be treated as
reconstructed for purposes of subsection (c)(4)(A) if improvements to
such property satisfy the substantial improvement test of section
1400Z-2(d)(2)(D)(ii).''.
(b) Coordination Between Critical Supply Chains Reshoring Credit
and Electricity Production Credit.--Section 45(e) of such Code is
amended by adding at the end the following new subsection:
``(e) Coordination With Critical Supply Chains Reshoring Investment
Credit.--The term `qualified facility' shall not include any facility
if a credit is allowed under section 48F with respect to such facility
for the taxable year or any prior taxable year.''.
(c) Conforming Amendments.--
(1) Section 6417(b) of such Code is amended by adding at
the end the following:
``(13) The critical supply chains reshoring investment
credit determined under section 48F.''.
(2) Section 6418(f)(1)(A) of such Code is amended by adding
at the end the following:
``(xii) The critical supply chains
reshoring investment credit determined under
section 48F.''.
(3) Section 46 of such Code is amended by striking ``and''
at the end of paragraph (6), by striking the period at the end
of paragraph (7) and inserting ``, and'', and by adding at the
end the following new paragraph:
``(8) the critical supply chains reshoring investment
credit.''.
(d) Effective Date.--The amendments made by this section shall
apply to property placed in service after December 31, 2024.
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