Wenstrup Introduces Bill to Bolster American Jobs and Medical Innovation
Washington, July 23, 2020/UploadedPhotos/HighResolution/53a6cfc4-0cc4-4f2a-a582-6a41c438e614.jpg
WASHINGTON, D.C.—Today, Congressman Brad Wenstrup, D.P.M., (OH-02) introduced legislation to bring more jobs in advanced manufacturing of prescription drugs, medical devices, and biological products into the United States.
“Since Congress enacted historic tax relief in 2017, we’ve seen a resurgence of American manufacturing after years of decline. It’s time to further strengthen our global position by investing in next-generation technology to make us the world leader in advanced medical manufacturing,” said Congressman Wenstrup. “This pandemic has taught us that there are vulnerabilities in some of our critical medical supply chains. We have learned – and will continue to learn – valuable lessons from this public health emergency, and what we do know now is that we must bolster domestic innovation and production of prescription drugs, medical devices, and biological products so we are better prepared in the future. My legislation supports the creation of new American manufacturing jobs while also helping to create a stable supply of critical drugs and medical supplies that are crucial to the health and safety of American patients.”
“America can be the world leader in innovation if we focus on economic growth and making the U.S. medically independent. We have an agenda for a healthy American economy, and it starts with bringing manufacturing back to the United States–particularly on the very medical supplies and drugs we need today,” Ways and Means GOP Leader Kevin Brady (R-TX) said. “America is going to harness innovation to cure coronavirus, return drug manufacturing to the United States, and make America healthy again. I want to thank Rep. Wenstrup for his leadership on this bill.”
How the bill works:
Part 1: Advanced Medical Manufacturing Equipment Credit
Creates a 30 percent tax credit for new investments in advanced manufacturing equipment or machinery used in the U.S. to manufacture drugs, medical devices, or biological products. The credit phases down to 20 percent in 2028, 10 percent in 2029, and phases out in 2030.
Part 2: Domestic Medical and Drug Manufacturing Tax CreditLowers the tax rate on the income from the domestic manufacturing and sales of active pharmaceutical ingredients (API) and medical countermeasures. By providing a credit of 10.5 percent of the net income from the sale of these important medical products, this effectively cuts the corporate tax rate in half from 21 percent on eligible profits. The credit is limited by the wages allocable to the domestic production, which supports good, high-paying jobs in the United States.