INFANT Tax Credit Act

Subpart E of part IV of subchapter A of chapter 1 of the Internal Revenue Code of 1986 is amended by inserting after section 48E the following new section:

For purposes of section 46, the domestic infant formula manufacturing investment credit for any taxable year is an amount equal to 25 percent of the qualified investment for such taxable year with respect to any domestic infant formula manufacturing facility of an eligible taxpayer.

For purposes of subsection (a), the qualified investment with respect to any domestic infant formula manufacturing facility for any taxable year is the basis of any qualified property placed in service by the taxpayer during such taxable year which is part of a domestic infant formula manufacturing facility.

For purposes of this subsection, the term qualified property means property—

(i) which is tangible property,

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

(iii) which is—

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

(II) acquired by the taxpayer if the original use of such property commences with the taxpayer, and

(iv) which is integral to the operation of the domestic infant formula manufacturing facility.

The term qualified property includes any building or its structural components which otherwise satisfy the requirements under subparagraph (A).

Clause (i) shall not apply with respect to a building or portion of a building used for offices, administrative services, or other functions unrelated to manufacturing.

For purposes of this section—

The term domestic infant formula manufacturing facility means a facility the primary purpose of which is the manufacturing of eligible infant formula.

The term eligible infant formula means infant formula that—

(i) may lawfully be sold in the United States, and

(ii) is manufactured in the United States.

Rules similar to the rules of paragraphs (3) and (4) of section 48D(b) shall apply for purposes of this section.

For purposes of this section, the term eligible taxpayer means a taxpayer—

(A) described in section 48D(c), and

(B) with a total global revenue for the taxable year which does not exceed $750,000,000.

For purposes of this paragraph, all persons which are treated as a single employer under subsections (a) and (b) of section 52 shall be treated as a single taxpayer.

Section 6417 of such Code is amended—

(1) in subsection (b), by adding at the end the following new paragraph:

(13) the domestic infant formula manufacturing investment credit under section 48F.

(1) , and

(2) in subsection (d)(1)—

(A) in subparagraph (E), by striking (C), or (D) each place it appears and inserting (C), (D), or (E),

(B) by redesignating subparagraph (E) as subparagraph (F), and

(C) by inserting after subparagraph (D) the following new subparagraph:

If a taxpayer other than an entity described in subparagraph (A) makes an election under this subparagraph with respect to any taxable year in which such taxpayer has, after the date of the enactment of this subparagraph, placed in service qualified property which is part of a domestic infant formula manufacturing facility (as defined in section 48F(b)(3)), such taxpayer shall be treated as an applicable entity for purposes of this section for such taxable year, but only with respect to the credit described in subsection (b)(13).

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

(8) the domestic infant formula manufacturing investment credit.

The table of sections for subpart E of part IV of subchapter A of chapter 1 of such Code is amended by inserting after the item relating to section 48E the following new item:

The amendments made by this section shall apply to property placed in service after March 1, 2022.

Subpart D of part IV of subchapter A of the Internal Revenue Code of 1986 is amended by adding at the end the following new section:

In the case of a qualified taxpayer, for purposes of section 38, the infant formula production credit for any taxable year is an amount equal to the product of—

(1) the amount in pounds of eligible infant formula manufactured by such taxpayer and sold for use in the United States during such taxable year, multiplied by

(2) $1.50.

For purposes of this section, the term qualified taxpayer means, with respect to a taxable year—

(1) a taxpayer if such taxpayer’s total global revenue for the preceding taxable year does not exceed $500,000,000, or

(2) a taxpayer to whom a credit was allowed under this section in the preceding taxable year.

For purposes of this section, the term eligible infant formula has the meaning given such term in section 48F(b)(3)(B).

For purposes of this section, all persons which are treated as a single employer under subsections (a) and (b) of section 52 shall be treated as a single taxpayer.

Infant formula produced at a facility with respect to which a credit was allowed under section 48F shall not be taken into account for purposes of subsection (a).

Section 6418(f)(1) of such Code (as amended by section 2) is amended by adding at the end the following new clause:

(xii) The infant formula production credit determined under section 45BB.

Section 6417(b) of such Code (as amended by section 2) is amended by adding at the end the following new paragraph:

(14) The infant formula production credit determined under section 45BB.

Section 38(b) is amended by striking plus at the end of paragraph (40), by striking the period at the end of paragraph (41) and inserting, plus, and by adding at the end the following new paragraph:

(42) in the case of an eligible taxpayer (as defined in section 48F), the infant formula production credit determined under section 45BB(a).

The table of sections for subpart D of part IV of subchapter A of the Internal Revenue Code of 1986 is amended by adding at the end the following new item:

The amendments made by this section shall apply to formula manufactured after the date of the enactment of this Act.

(1) with respect to the year preceding the report, the number of persons that—

(A) operated a domestic infant formula manufacturing facility (as defined in section 48F(b)(3) of the Internal Revenue Code of 1986); and

(B) received funding under a rural development program of the Department of Agriculture;

(2) a description of any barriers that would prevent a person that operates such a facility from accessing such funding and the resources the Secretary requires to address such barriers; and

(3) an assessment of the impact that domestic infant formula manufacturing facilities have on the communities in which such facilities are located.