Bill aims to encourage US pharmaceutical manufacturing

Farma Darya

Congressmen Brad Wenstrup (R-Ohio) and Drew Ferguson (R-Georgia) have introduced the American Made Medicine Act. The legislation is intended to secure the country’s medical supply chains, reduce reliance on China and India for pharma products, and create jobs in the pharmaceutical sector.

Wenstrup said the country is put at a disadvantage by an overreliance on China and other countries in purchasing pharmaceuticals, medical devices, personal protective equipment (PPE), and other essential products.

“The COVID-19 pandemic revealed these critical vulnerabilities in America’s medical supply chains,” said Wenstrup. “America can and should continue to be the world’s leader in medical innovation and advanced medical manufacturing.”

Ferguson added, “Incentivizing domestic production will not only support good, high-paying US jobs, it will also reverse our reliance on foreign manufacturing. Further, I’m pleased that this bill will invest in a rust belt revitalization by rehabilitating existing manufacturing facilities and equipment to meet today’s regulatory standards.”

The bill consists of three primary components:

  • Domestic Medical and Drug Manufacturing Tax Credit: lowers the tax rate on income attributable to the domestic manufacturing and sales of active pharmaceutical ingredients (APIs) and medical countermeasures, including nitrile gloves.
  • Advanced Medical Manufacturing Equipment Credit: this 30% investment tax credit (phased out over 10 years) for investments in advanced manufacturing equipment or machinery used to manufacture drugs, medical devices, or biological products in the US.
  • Medical Manufacturing EPA Compliance Credit: another 30% investment tax credit (also phased out over 10 years) for investments in equipment/property used to meet emissions standards under the Clean Air Act or the Clean Water Act.

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