This bill would create a new federal tax credit worth 40 percent of investment costs for companies that build or upgrade facilities manufacturing critical products in U.S. territories and Puerto Rico. The credit applies to manufacturing of pharmaceuticals, drugs, biological products, medical devices, semiconductors, aerospace equipment, and advanced nanomaterials, provided the facilities are located in specified U.S. possessions or Puerto Rico. The legislation is designed to incentivize companies to bring supply chain manufacturing operations back to U.S. territory, addressing national security and economic resilience concerns in essential industries. The tax credit would take effect for any property placed into service after December 31, 2024, and companies cannot claim both this new credit and the existing electricity production tax credit for the same facility. The bill includes conforming amendments to allow the credit to be transferred or monetized under existing tax code provisions that allow certain business credits to be converted to direct payments.
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