[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[H.R. 8504 Introduced in House (IH)]

<DOC>






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.
                                 <all>