[Congressional Record Volume 166, Number 137 (Monday, August 3, 2020)]
[Senate]
[Page S4670]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

  SA 2503. Mrs. LOEFFLER (for herself, Ms. Ernst, and Mr. Cruz) 
submitted an amendment intended to be proposed to amendment SA 2499 
proposed by Mr. McConnell to the bill S. 178, to condemn gross human 
rights violations of ethnic Turkic Muslims in Xinjiang, and calling for 
an end to arbitrary detention, torture, and harassment of these 
communities inside and outside China; which was ordered to lie on the 
table; as follows:

        At the appropriate place, insert the following:

     SEC. 3. TAX INCENTIVES FOR RELOCATING MANUFACTURING OF 
                   PHARMACEUTICALS AND MEDICAL SUPPLIES AND 
                   DEVICES TO THE UNITED STATES.

       (a) Accelerated Depreciation for Nonresidential Real 
     Property.--Section 168 of the Internal Revenue Code of 1986 
     is amended by adding at the end the following new subsection:
       ``(n) Accelerated Depreciation for Nonresidential Real 
     Property Acquired in Connection With the Relocation of 
     Manufacturing of Pharmaceuticals and Medical Supplies and 
     Devices to the United States.--
       ``(1) Treatment as 20-year property.--For purposes of this 
     section, qualified nonresidential real property shall be 
     treated as 20-year property.
       ``(2) Application of bonus depreciation.--For application 
     of bonus depreciation to qualified nonresidential real 
     property, see subsection (k).
       ``(3) Qualified nonresidential real property.--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.
       ``(4) Qualified manufacturer.--For purposes of this 
     subsection, the term `qualified manufacturer' means any 
     person engaged in the trade or business of manufacturing a 
     qualified medical product.
       ``(5) Qualified medical product.--For purposes of this 
     subsection, the term `qualified medical product' means any 
     pharmaceutical, medical device, or medical supply.
       ``(6) Qualified relocation of manufacturing.--For purposes 
     of this subsection--
       ``(A) In general.--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.
       ``(B) Relocation of property not required.--For purposes of 
     subparagraph (A), manufacturing shall not fail to be treated 
     as relocated merely because property used in such 
     manufacturing was not relocated.
       ``(C) Relocation of not less than equivalent productive 
     capacity required.--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.
       ``(7) Application to possessions of the united states.--For 
     purposes of this subsection, the term `United States' 
     includes any possession of the United States.''.
       (b) Exclusion of Gain on Disposition of Property in 
     Connection With Qualified Relocation of Manufacturing.--
       (1) In general.--Part III of subchapter B of chapter 1 of 
     such Code is amended by inserting after section 139H the 
     following new section:

     ``SEC. 139I. EXCLUSION OF GAIN ON DISPOSITION OF PROPERTY IN 
                   CONNECTION WITH QUALIFIED RELOCATION OF 
                   MANUFACTURING.

       ``(a) In General.--In the case of a qualified manufacturer, 
     gross income shall not include gain from the sale or exchange 
     of qualified relocation disposition property.
       ``(b) Qualified Relocation Disposition Property.--For 
     purposes of this section, the term `qualified relocation 
     disposition property' means any property which--
       ``(1) is sold or exchanged by a qualified manufacturer in 
     connection with a qualified relocation of manufacturing, and
       ``(2) 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.
       ``(c) Other Terms.--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.''.
       (2) Clerical amendment.--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.''.

       (c) Effective Dates.--
       (1) Accelerated depreciation.--The amendment made by 
     subsection (a) shall apply to property placed in service 
     after the date of the enactment of this Act.
       (2) Exclusion of gain.--The amendments made by subsection 
     (b) shall apply to sales and exchanges after the date of the 
     enactment of this Act.
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