,i #aaf? ,,congress #b;d ,session ,h4 ,r4 #ggfg ,,9 ,,! ,,h\se ,,( ,,repres5tatives ,july #bc1 #bjbj,mr4 ,w5/rup 7= himself & ,mr4 ,arr+ton7 introduc$ ! foll[+ bill2 :i* 0 ref]r$ to ! ,committee on ,ways & ,means ,a ,,bill ,to am5d ! ,int]nal ,rev5ue ,code ( #aihf to provide = cr$its aga9/ tax = dome/ic m$ical & drug manufactur+ & advanc$ m$ical manufactur+ equipm5t4 #a4 ,dome/ic m$ical & drug manufactur+ cr$it 7a7 ,9 g5]al ,subp>t ,d ( "p ,,iv ( sub*apt] ,a ( *apt] #a ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$ by add+ at ! end ! foll[+ new section3 #de,u4 ,dome/ic m$ical & drug manufactur+ cr$it 7a7 ,9 g5]al ,= purposes ( section #ch1 ! dome/ic m$ical & drug manufactur+ cr$it det]m9$ "u ?is section = any taxable ye> is an am\nt equal to #aj4e p]c5t ( ! less] (-- 7#a7 ! qualifi$ m$ical & drug manufactur+ income ( ! taxpay] = ! taxable ye>1 or 7#b7 taxable income ( ! taxpay] = ! taxable ye>4 7b7 ,cr$it limit$ to wages paid 7#a7 ,9 g5]al ,! am\nt ( ! cr$it all[able "u subsection 7a7 = any taxable ye> %all n exce$ #ej p]c5t ( ! ,w-#b wages ( ! taxpay] = ! taxable ye>4 7#b7 ,w-#b wages ,= purposes ( ?is section-- 7,a7 ,9 g5]al ,! t]m ,w-#b wages means1 ) respect to any p]son = any taxable ye> ( su* p]son1 ! sum ( ! am\nts describ$ 9 p>agraphs 7#c7 & 7#h7 ( section #fjea7;a7 paid by su* p]son ) respect to employm5t ( employees by su* p]son dur+ ! cal5d> ye> end+ dur+ su* taxable ye>4 7,b7 ,limitation to wages attributable to dome/ic production ,su* t]m %all n include any am\nt :i* is n prop]ly allocable to dome/ic m$ical & drug manufactur+ gross receipts = purposes ( subsection 7c77#a74 7,c7 ,return requirem5t ,su* t]m %all n include any am\nt :i* is n prop]ly includ$ 9 a return fil$ ) ! ,social ,security ,adm9i/ration on or be=e ! #fj? day aft] ! due date 7includ+ ext5sions7 = su* return4 7#c7 ,acquisitions1 dispositions1 & %ort taxable ye>s ,! ,secret>y %all provide = ! application ( ?is subsection 9 cases ( a %ort taxable ye> or :]e ! taxpay] acquires1 or disposes (1 ! major portion ( a trade or bus9ess or ! major portion ( a sep>ate unit ( a trade or bus9ess dur+ ! taxable ye>4 7c7 ,qualifi$ m$ical & drug manufactur+ income ,= purposes ( ?is section-- 7#a7 ,9 g5]al ,! t]m qualifi$ m$ical & drug manufactur+ income = any taxable ye> means an am\nt equal to ! excess 7if any7 (-- 7,a7 ! taxpay]'s dome/ic m$ical & drug manufactur+ gross receipts = ! taxable ye>1 ov] 7,b7 ! sum (-- 7i7 ! co/ ( goods sold t are allocable to su* receipts1 & 7ii7 o!r exp5ses1 losses1 or d$uctions :i* are prop]ly allocable to su* receipts4 7#b7 ,allocation me?od ,! ,secret>y %all prescribe rules = ! prop] allocation ( items describ$ 9 p>agraph 7#a77;,b7 = purposes ( det]m9+ qualifi$ m$ical & drug manufactur+ income4 ,su* rules %all provide = ! prop] allocation ( items :e!r or n su* items are directly allocable to dome/ic m$ical & drug manufactur+ gross receipts4 7#c7 ,special rules = det]m9+ co/s 7,a7 ,9 g5]al ,= purposes ( det]m9+ co/s "u clause 7i7 ( p>agraph 7#a77;,b71 any item or s]vice br\ght into ! ,unit$ ,/ates %all be treat$ z acquir$ by pur*ase1 & its co/ %all be treat$ z n less ?an its value imm$iately aft] x ent]$ ! ,unit$ ,/ates4 7,b7 ,exports = fur!r manufacture ,9 ! case ( any prop]ty describ$ 9 subp>agraph 7,a7 t _h be5 export$ by ! taxpay] = fur!r manufacture1 ! increase 9 co/ or adju/$ basis "u subp>agraph 7,a7 %all n exce$ ! diff]5ce betwe5 ! value ( ! prop]ty :5 export$ & ! value ( ! prop]ty :5 br\ght back into ! ,unit$ ,/ates aft] ! fur!r manufacture4 7#d7 ,dome/ic m$ical & drug manufactur+ gross receipts 7,a7 ,9 g5]al ,! t]m dome/ic m$ical & drug manufactur+ gross receipts means ! gross receipts ( ! taxpay] :i* are d]iv$ f any sale1 ex*ange1 or o!r disposition (-- 7i7 any active ph>maceutical +r$i5t1 or 7ii7 any qualifi$ c\nt]measure1 :i* 0 manufactur$ or produc$ by ! taxpay] 9 :ole or 9 significant "p )9 ! ,unit$ ,/ates4 7,b7 ,active ph>maceutical +r$i5t ,! t]m active ph>maceutical +r$i5t means any sub/ance or mixture ( sub/ances int5d$ to be us$ 9 ! manufacture ( a drug product & 7:5 s us$7 becomes an active +r$i5t 9 ! drug product4 7,c7 ,qualifi$ c\nt]measure ,! t]m qualifi$ c\nt]measure has ! mean+ giv5 su* t]m 9 section #cai;,f-#a7;a77#b7 ( ! ,public ,heal? ,s]vice ,act 7#db ,u4,s4,c4 #bdg;d-#f;a7a77#b7740 7,d7 ,p>tn]%ips own$ by exp&$ affiliat$ gr\ps ,= purposes ( ?is p>agraph1 if all ( ! int]e/s 9 ! capital & pr(its ( a p>tn]%ip are own$ by memb]s ( a s+le exp&$ affiliat$ gr\p at all times dur+ ! taxable ye> ( su* p>tn]%ip1 ! p>tn]%ip & all memb]s ( su* gr\p %all be treat$ z a s+le taxpay] dur+ su* p]iod4 7d7 ,def9itions & ,special ,rules ,= purposes ( ?is section-- 7#a7 ,application ( section to pass-?ru entities 7,a7 ,p>tn]%ips & s corporations ,9 ! case ( a p>tn]%ip or ,s corporation-- 7i7 ?is section %all be appli$ at ! p>tn] or %>ehold] level1 7ii7 ea* p>tn] or %>ehold] %all take into acc\nt su* p]son's allocable %>e ( ea* item describ$ 9 subp>agraph 7,a7 or 7,b7 ( subsection 7c77#a7 7det]m9$ )\t reg>d to :e!r ! items describ$ 9 su* subp>agraph 7,a7 exce$ ! items describ$ 9 su* subp>agraph 7,b771 & 7iii7 ea* p>tn] or %>ehold] %all be treat$ = purposes ( subsection 7b7 z hav+ ,w-#b wages = ! taxable ye> 9 an am\nt equal to su* p]son's allocable %>e ( ! ,w-#b wages ( ! p>tn]%ip or ,s corporation = ! taxable ye> 7z det]m9$ "u regulations prescrib$ by ! ,secret>y74 7,b7 ,tru/s & e/ates ,9 ! case ( a tru/ or e/ate-- 7i7 ! items ref]r$ to 9 subp>agraph 7,a77ii7 7z det]m9$ !re97 & ! ,w-#b wages ( ! tru/ or e/ate = ! taxable ye>1 %all be apportion$ betwe5 ! b5efici>ies & ! fiduci>y 7& among ! b5efici>ies7 "u regulations prescrib$ by ! ,secret>y1 & 7ii7 = purposes ( p>agraph 7#b71 adju/$ gross income ( ! tru/ or e/ate %all be det]m9$ z provid$ 9 section #fg7;e7 ) ! adju/m5ts describ$ 9 su* p>agraph4 7,c7 ,regulations ,! ,secret>y may prescribe rules requir+ or re/rict+ ! allocation ( items & wages "u ?is p>agraph & may prescribe su* report+ requirem5ts z ! ,secret>y det]m9es appropriate4 7#b7 ,application to individuals ,9 ! case ( an individual1 subsection 7a77#b7 %all be appli$ by sub/itut+ adju/$ gross income = taxable income4 ,= purposes ( ! prec$+ s5t5ce1 adju/$ gross income %all be det]m9$ aft] application ( sections #hf1 #ace1 #acg1 #bai1 #bba1 #bbb1 & #dfi4 7#c7 ,special rule = affiliat$ gr\ps 7,a7 ,9 g5]al ,all memb]s ( an exp&$ affiliat$ gr\p %all be treat$ z a s+le corporation = purposes ( ?is section4 7,b7 ,exp&$ affiliat$ gr\p ,= purposes ( ?is section1 ! t]m exp&$ affiliat$ gr\p means an affiliat$ gr\p z def9$ 9 section #aejd7;a71 det]m9$-- 7i7 by sub/itut+ m ?an #ej p]c5t = at lea/ #hj p]c5t ea* place x appe>s1 & 7ii7 )\t reg>d to p>agraphs 7#b7 & 7#d7 ( section #aejd7;b74 7,c7 ,allocation ( cr$it ,except z provid$ 9 regulations1 ! cr$it "u subsection 7a7 %all be allocat$ among ! memb]s ( ! exp&$ affiliat$ gr\p 9 proportion to ea* memb]'s respective am\nt 7if any7 ( qualifi$ m$ical & drug manufactur+ income4 7#d7 ,trade or bus9ess requirem5t ,?is section %all be appli$ by only tak+ into acc\nt items :i* are attributable to ! actual conduct ( a trade or bus9ess4 7#e7 ,coord9ation ) m9imum tax ,= purposes ( det]m9+ alt]native m9imum taxable income "u section #ee1 qualifi$ m$ical & drug manufactur+ income %all be det]m9$ )\t reg>d to any adju/m5ts "u sections #ef ?r\gh #ei4 7#f7 ,unrelat$ bus9ess taxable income ,= purposes ( det]m9+ ! tax impos$ by section #eaa1 subsection 7a77#a77;,b7 %all be appli$ by sub/itut+ unrelat$ bus9ess taxable income = taxable income4 7#g7 ,regulations ,! ,secret>y %all prescribe su* regulations z are necess>y to c>ry out ! purposes ( ?is section1 includ+ regulations :i* prev5t m ?an #a taxpay] f be+ all[$ a cr$it "u ?is section ) respect to any activity describ$ 9 subsection 7c77#d77;,a74 4 7b7 ,treatm5t "u base erosion tax ,section #ei;,a7b77#a77;,b77ii7 ( su* ,code is am5d$ by /rik+ plus at ! end ( subclause 7,i71 by r$esignat+ subclause 7,,ii7 z subclause 7,,iii71 & by ins]t+ aft] subclause 7,i7 ! foll[+ new subclause3 7,,ii7 ! cr$it all[$ "u section #ch = ! taxable ye> :i* is prop]ly allocable to ! dome/ic m$ical & drug manufactur+ cr$it det]m9$ "u section #de,u7a71 plus 4 7c7 ,"p ( g5]al bus9ess cr$it ,section #ch7;b7 ( su* ,code is am5d$ by /rik+ plus at ! end ( p>agraph 7#cb71 by /rik+ ! p]iod at ! end ( p>agraph 7#cc7 & ins]t+ 1 plus1 & by add+ at ! end ! foll[+ new p>agraph3 7#cd7 ! dome/ic m$ical & drug manufactur+ cr$it det]m9$ "u section #de,u7a74 4 7d7 ,cr$it all[$ aga9/ alt]native m9imum tax ,section #ch7;c77#d77;,b7 ( su* ,code is am5d$ by r$esignat+ clauses 7x7 ?r\gh 7xii7 z clauses 7xi7 ?r\gh 7xiii71 respectively1 & by ins]t+ aft] clause 7ix7 ! foll[+ new clause3 7x7 ! cr$it det]m9$ "u section #de,u1 4 7e7 ,cl]ical am5dm5t ,! table ( sections = subp>t ,d ( "p ,,iv ( sub*apt] ,a ( *apt] #a ( su* ,code is am5d$ by add+ at ! end ! foll[+ new item3 ,sec4 #de,u4 ,dome/ic m$ical & drug manufactur+ cr$it4 4 7f7 ,effective date ,! am5dm5ts made by ?is section %all apply to taxable ye>s beg9n+ aft] ,decemb] #ca1 #bjbj4 #b4 ,qualify+ ,advanc$ ,m$ical ,manufactur+ ,equipm5t ,cr$it 7a7 ,9 g5]al ,subp>t ,e ( "p ,,iv ( sub*apt] ,a ( *apt] #a ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$ by add+ at ! end ! foll[+ new section3 #dh;,d4 ,qualify+ ,advanc$ ,m$ical ,manufactur+ ,equipm5t ,cr$it 7a7 ,9 g5]al ,= purposes ( section #df1 ! qualify+ advanc$ m$ical manufactur+ equipm5t cr$it det]m9$ "u ?is section = any taxable ye> is ! applicable p]c5tage ( ! basis ( any qualify+ advanc$ m$ical manufactur+ equipm5t plac$ 9 s]vice dur+ su* taxable ye>4 7b7 ,applicable p]c5tage ,= purposes ( subsection 7a71 ! applicable p]c5tage is-- 7#a7 #cj p]c5t 9 ! case ( equipm5t :i* is plac$ 9 s]vice be=e ,janu>y #a1 #bjbh1 7#b7 #bj p]c5t 9 ! case ( equipm5t :i* is plac$ 9 s]vice dur+ cal5d> ye> #bjbh1 7#c7 #aj p]c5t 9 ! case ( equipm5t :i* is plac$ 9 s]vice dur+ cal5d> ye> #bjbi1 & 7#d7 #j p]c5t 9 ! case ( equipm5t :i* is plac$ 9 s]vice aft] ,decemb] #ca1 #bjbi4 7c7 ,qualify+ advanc$ m$ical manufactur+ equipm5t ,= purposes ( ?is section1 ! t]m qualify+ advanc$ m$ical manufactur+ equipm5t means prop]ty ( a "* subject to ! all[ance = depreciation-- 7#a7 :i* is ma*9]y or equipm5t t is design$ & us$ to manufacture a-- 7,a7 drug 7z su* t]m is def9$ 9 section #bja7;g77#a7 ( ! ,f$]al ,food1 ,drug1 & ,cosmetic ,act71 7,b7 device 7z su* t]m is def9$ 9 section #bja7;h7 ( su* ,act71 or 7,c7 biological product 7z su* t]m is def9$ 9 section #cea7;i7 ( ! ,public ,heal? ,s]vice ,act71 7#b7 :i* has be5 id5tifi$ by ! ,secret>y 7aft] consultation ) ! ,secret>y ( ,heal? & ,human ,s]vices7 z ma*9]y or equipm5t t-- 7,a7 incorporates novel te*nology or uses an e/abli%$ te*nique or te*nology 9 a new or innovative way1 or 7,b7 t c improve m$ical product quality1 address %ortages ( m$ic9es1 & spe$ "t-to-m>ket1 7#c7 :i* is plac$ 9 s]vice 9 ! ,unit$ ,/ates by ! taxpay]1 & 7#d7 ) respect to :i* depreciation is all[able4 7d7 ,c]ta9 qualifi$ progress exp5ditures rules made applicable ,rules simil> to ! rules ( subsections 7c77#d7 & 7d7 ( section #df 7z 9 effect on ! day be=e ! enactm5t ( ! ,rev5ue ,reconciliation ,act ( #aiij7 %all apply = purposes ( ?is section4 7e7 ,regulations ,! ,secret>y %all prescribe su* regulations or o!r guidance z may be necess>y to c>ry out ! purposes ( ?is section1 includ+ regulations :i* prev5t abuse or fraud4 4 7b7 ,treatm5t "u base erosion tax ,section #ei;,a7b77#a77;,b77ii7 ( su* ,code1 z am5d$ "u section #a ( ?is ,act1 is fur!r am5d$ by /rik+ plus at ! end ( subclause 7,,ii71 by r$esignat+ subclause 7,,iii7 z subclause 7,,iv71 & by ins]t+ aft] subclause 7,,ii7 ! foll[+ new subclause3 7,,iii7 ! cr$it all[$ "u section #df = ! taxable ye> :i* is prop]ly allocable to ! qualify+ advanc$ m$ical manufactur+ equipm5t cr$it det]m9$ "u section #dh;,d7a71 plus 4 7c7 ,"p ( inve/m5t cr$it ,section #df ( su* ,code is am5d$ by /rik+ & at ! end ( p>agraph 7#e71 by /rik+ ! p]iod at ! end ( p>agraph 7#f7 & ins]t+ 1 &1 & by add+ at ! end ! foll[+ new p>agraph3 7#g7 ! qualify+ advanc$ m$ical manufactur+ equipm5t cr$it4 4 7d7 ,cl]ical am5dm5t ,! table ( sections = subp>t ,d ( "p ,,iv ( sub*apt] ,a ( *apt] #a ( su* ,code is am5d$ by add+ at ! end ! foll[+ new item3 ,sec4 #dh;,d4 ,qualify+ advanc$ m$ical manufactur+ equipm5t cr$it4 4 7e7 ,effective date ,! am5dm5ts made by ?is section %all apply to p]iods aft] ! date ( ! enactm5t ( ?is section "u rules simil> to ! rules ( section #dh7m7 ( ! ,int]nal ,rev5ue ,code ( #aihf 7z 9 effect on ! date ( ! enactm5t fo ! ,rev5ue ,reconciliation ,act ( #aiij74