NASS Insider

June 02, 2020

Bill Offers 30% Tax Credit For U.S. Drugs/Medical Equipment

Rep. Buddy Carter (GA-1), a member of the GOP Doc Caucus, introduced a bill this week aiming to provide a 30% tax credit to makers of drugs, protective medical gear, and diagnostics manufactured in the United States. The Manufacturing API, Drugs, and Excipients (MADE) in America Act, has four other original co-sponsors, including Rep. Darren Soto (FL-9), Rep. Morgan Griffith (VA-9), Rep. David McKinley (WV-1) and Rep. Eric Crawford (AR). The bills would provide the tax credit both to companies that move manufacturing to the United States and those that already make drugs here. The tax credit would apply to production activities that include payments for wages, supplies and equipment. The tax credit is meant to offset the added cost of making drug in the United States. To qualify for the tax credit, companies would be required to locate facilities in areas of the country with poverty rates of at least 30%. Sen. Tim Scott (SC) is seeking to file a companion bill in the upper chamber with the hope of including in a next large COVID response package.