Supply Chain Security and Growth Act of 2024

Subpart E of part IV of subchapter A of the Internal Revenue Code of 1986 is amended by inserting after section 48E the following new section:

For purposes of section 46, in the case of a qualifying taxpayer, the critical supply chains reshoring investment credit is an amount equal to 40 percent of the qualified investment with respect to any critical supply chain facility placed in service during such taxable year.

For purposes of subsection (a), the qualified investment with respect to any critical supply chain facility for any taxable year is an amount equal to the basis of any qualified property placed in service by the taxpayer during such taxable year which is part of a such facility.

For purposes of this section, the term qualifying property means property—

(1) that is integral to the operation of a critical supply chain facility,

(2) that is tangible property,

(3) with respect to which depreciation (or amortization in lieu of depreciation) is allowable, and

(4) which is—

(A) constructed, reconstructed, or erected by the taxpayer, or

(B) acquired by the taxpayer if the original use of such property commences with the taxpayer.

For purposes of this section, the term critical supply chain facility means a facility—

(A) the primary purpose of which is the manufacturing of—

(i) An active pharmaceutical ingredient (as defined in section 2017.1 of title 21, Code of Federal Regulations (or any successor regulations)),

(ii) A drug (as defined in section 201(g) of the Federal Food, Drug, and Cosmetic Act),

(iii) A biological product (as defined in section 351(i)(1) of the Public Health Service Act),

(iv) A medical countermeasure (as defined in section 319F-3(i)(1) of the Public Health Service Act),

(v) A medical diagnostic device (as defined in section 201(h) of the Federal Food, Drug, and Cosmetic Act) intended for use in the diagnosis of disease or other conditions,

(vi) Semiconductors or semiconductor manufacturing equipment,

(vii) Aerospace equipment as defined under North American Industry Classification Code 3364,

(viii) Artificial nanomaterials, and

(B) located in a specified possession within the meaning of section 937(c) or Puerto Rico.

Property shall be treated as reconstructed for purposes of subsection (c)(4)(A) if improvements to such property satisfy the substantial improvement test of section 1400Z-2(d)(2)(D)(ii).

Section 45(e) of such Code is amended by adding at the end the following new subsection:

The term qualified facility shall not include any facility if a credit is allowed under section 48F with respect to such facility for the taxable year or any prior taxable year.

(1) Section 6417(b) of such Code is amended by adding at the end the following:

(13) The critical supply chains reshoring investment credit determined under section 48F.

(2) Section 6418(f)(1)(A) of such Code is amended by adding at the end the following:

(xii) The critical supply chains reshoring investment credit determined under section 48F.

(3) Section 46 of such Code is amended by striking and at the end of paragraph (6), by striking the period at the end of paragraph (7) and inserting, and, and by adding at the end the following new paragraph:

(8) the critical supply chains reshoring investment credit.

The amendments made by this section shall apply to property placed in service after December 31, 2024.