Bring Entrepreneurial Advancements To Consumers Here In North America Act
This bill allows accelerated depreciation of nonresidential real property acquired to relocate facilities for the manufacture of pharmaceuticals and medical devices or supplies in the United States. It also allows an exclusion from gross income of gain from the sale or exchange of relocation property that was used to manufacture medical products in a foreign country.
[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[S. 3945 Introduced in Senate (IS)]
<DOC>
116th CONGRESS
2d Session
S. 3945
To amend the Internal Revenue Code of 1986 to provide incentives for
relocating manufacturing of pharmaceuticals and medical supplies and
devices to the United States.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
June 11, 2020
Mrs. Loeffler (for herself, Ms. Ernst, and Mr. Cruz) introduced the
following bill; which was read twice and referred to the Committee on
Finance
_______________________________________________________________________
A BILL
To amend the Internal Revenue Code of 1986 to provide incentives for
relocating manufacturing of pharmaceuticals and medical supplies and
devices to the United States.
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 ``Bring Entrepreneurial Advancements
To Consumers Here In North America Act''.
SEC. 2. FINDINGS.
Congress finds as follows:
(1) In late December 2019, authorities in the city of Wuhan
in China's Hubei Province reported a cluster of pneumonia cases
of unknown cause.
(2) The Government of the People's Republic of China
eventually identified the cause of the outbreak to be a novel
coronavirus that would later be understood to cause a
respiratory illness in humans, known as COVID-19.
(3) The pandemic spread of COVID-19 and the geographic
location of its origin caused reverberations in medical supply
chains that reached around the world.
(4) The COVID-19 pandemic highlights the United States
dependency on China for critical medical supplies and
pharmaceutical products.
(5) The Government of the People's Republic of China and
the Chinese Communist Party prioritize state support for
biotechnology manufacturing as a strategic industry under the
``Made in China 2025'' initiative.
(6) According to the United States Food and Drug
Administration, as of 2018, China is the largest exporter of
medical devices and the second largest exporter of drugs and
biologics to the United States.
(7) Chinese pharmaceutical companies produce more than 90
percent of the supply of antibiotics, vitamin C, ibuprofen, and
hydrocortisone in the United States.
(8) In March 2020, Xinhua News Service, a Chinese state-
controlled news agency, reprinted an article insinuating that
if China were to announce its ``strategic control'' of medical
products and ban exports to the United States, ``the United
States would be plunged into the vast ocean of novel
coronavirus.''
(9) The ability of the Government of the People's Republic
of China and the Chinese Communist Party to control the medical
supply chain poses a risk to the national security of the
United States.
(10) Companies should be incentivized through a competitive
tax structure to manufacture and produce pharmaceuticals and
medical devices in the United States.
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.
<all>
Introduced in Senate
Read twice and referred to the Committee on Finance.
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