Sec. 302. Tax incentives for relocating manufacturing of pharmaceuticals and medical supplies and devices to the United States

511 words·~2 min read·/bill/117/hr/4792/ih/section-302

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Section 168 of the Internal Revenue Code of 1986 is amended by adding at the end the following new subsection: For purposes of this section, qualified nonresidential real property shall be treated as 20-year property. For application of bonus depreciation to qualified nonresidential real property, see subsection (k). 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.

For purposes of this subsection, the term qualified manufacturer means any person engaged in the trade or business of manufacturing a qualified medical product. For purposes of this subsection, the term qualified medical product means any pharmaceutical, medical device, or medical supply. For purposes of this subsection— 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.

For purposes of subparagraph (A), manufacturing shall not fail to be treated as relocated merely because property used in such manufacturing was not relocated. 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.

For purposes of this subsection, the term United States includes any possession of the United States. . Part III of subchapter B of chapter 1 of such Code is amended by inserting after section 139H the following new section: In the case of a qualified manufacturer, gross income shall not include gain from the sale or exchange of qualified relocation disposition property. For purposes of this section, the term qualified relocation disposition property means any property which— is sold or exchanged by a qualified manufacturer in connection with a qualified relocation of manufacturing, and 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.

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. . 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. . The amendment made by subsection

(a)shall apply to property placed in service after the date of the enactment of this Act. The amendments made by subsection

(b)shall apply to sales and exchanges after the date of the enactment of this Act.