,i #aagth ,,congress #b;d ,session ,h4 ,r4 #gaff ,,in ,,the ,,house ,,of ,,representatives ,march #ah1 #bjbb,mr4 ,mooney introduced the following bill2 which was referred to the ,committee on ,ways and ,means ,a ,,bill ,to amend the ,internal ,revenue ,code of #aihf to provide for extended expensing of pharmaceutical manufacturing property1 and for other purposes4 #a4 ,short title ,this ,act may be cited as the ,make ,medicine in ,america ,again ,act4 #b4 ,extension and expansion of cost expensing provisions for ,pharmaceutical ,manufacturers 7a7 ,allowance of bonus depreciation for pharmaceutical manufacturing property ,section #afh7k77#b77;,a7 of the ,internal ,revenue ,code of #aihf is amended-- 7#a7 in clause 7i71 by striking or in subclause 7,,iii71 by striking or in subclause 7,,iv71 by adding or at the end of subclause 7,v71 and by adding at the end the following new subclause3 7,,vi7 which is pharmaceutical manufacturing property 7as defined in paragraph #aa74 1 and 7#b7 in clause 7iii71 by striking the period and adding at the end 7other than pharmaceutical manufacturing property744 7b7 ,application of applicable percentage ,section #afh7k77#f7 of such ,code is amended by adding at the end the following new subparagraph3 7,d7 ,rule for pharmaceutical manufacturing property ,notwithstanding any other provisions of this paragraph1 in the case of any qualified property which is pharmaceutical manufacturing property1 the term applicable percentage means1 in the case of property placed in service after ,december #ca1 #bjbc1 #ajj percent4 4 7c7 ,pharmaceutical manufacturing property defined ,section #afh7k7 of such ,code is amended by adding at the end the following new paragraph3 7#aa7 ,pharmaceutical manufacturing property defined ,for purposes of this subsection1 the term pharmaceutical manufacturing property means property1 equipment1 buildings1 or facilities placed in service in the ,united ,states for the purpose of facilitating pharmaceutical manufacturing4 7a7 ,effective date ,the amendments made by this section shall apply to property placed in service after ,december #ca1 #bjbb4 4 #c4 ,pharmaceutical manufacturing credit 7a7 ,in general ,subpart ,d of part ,,iv of subchapter ,a of chapter #a of the ,internal ,revenue ,code of #aihf is amended by adding at the end the following new section3 #de,u4 ,pharmaceutical manufacturing credit 7a7 ,in general ,for purposes of section #ch1 the pharmaceutical manufacturing credit for the taxable year shall be an amount equal to #ej percent of the qualified production activity expenditures of the taxpayer for the taxable year4 7b7 ,qualified production activity expenditures ,for purposes of this section-- 7#a7 ,in general ,the term qualified production activity expenditures means-- 7,a7 wages paid or incurred to an employee of the taxpayer for services performed by such employee in the conduct of a qualified pharmaceutical manufacturing business in the ,united ,states 7but only if the employee's principal place of employment is in the ,united ,states71 7,b7 amounts paid or incurred for any tangible personal property 7whether or not otherwise properly chargeable to capital account7 used in the conduct of a qualified pharmaceutical manufacturing business in the ,united ,states 7but only if the primary use of such property is in the ,united ,states71 and 7,c7 any direct or indirect costs paid or incurred in the conduct of a qualified pharmaceutical manufacturing business in the ,united ,states4 7#b7 ,qualified pharmaceutical manufacturing business 7,a7 ,in general ,the term qualified pharmaceutical manufacturing business means the trade or business of producing pharmaceuticals and active pharmaceutical ingredients4 7,b7 ,active pharmaceutical ingredient ,the term active pharmaceutical ingredients has the meaning given to such term in section #bjg4a of title #ba1 ,code of ,federal ,regulations 7and any successor regulations74 7,c7 ,pharmaceutical ,the term pharmaceutical-- 7i7 means any drug 7as defined in section #bja of the ,federal ,food1 ,drug1 and ,cosmetic ,act71 and 7ii7 includes a biological product 7as defined in section #cea of the ,public ,health ,service ,act74 7#c7 ,certain health plan expenses treated as wages 7,a7 ,in general ,for purposes of paragraph 7#a71 the term wages shall include so much of the eligible employer's qualified health plan expenses as are properly allocable to such wages4 7,b7 ,qualified health plan expenses ,for purposes of this paragraph1 the term qualified health plan expenses means amounts paid or incurred by the eligible employer to provide and maintain a group health plan 7as defined in section #ejjj7;b77#a771 but only to the extent that such amounts are excluded from the gross income of employees by reason of section #ajf7;a7 of such ,code4 7,c7 ,allocation rules ,for purposes of this paragraph1 qualified health plan expenses shall be allocated to qualified wages in such manner as the ,secretary may prescribe4 ,except as otherwise provided by the ,secretary1 such allocation shall be treated as properly made if made on the basis of being pro rata among employees and pro rata on the basis of periods of coverage 7relative to the periods to which such wages relate74 7#d7 ,united ,states ,the term ,united ,states means the #ej ,states and the ,district of ,columbia4 7c7 ,special rules 7#a7 ,reduction in basis ,if a credit is determined under this section with respect to any property by reason of any qualified production activity expenditures described in subsection 7b77#a77;,b71 the basis of such property shall be reduced by the amount of the credit so determined4 7#b7 ,coordination with other credits ,any qualified production activity expenditures taken into account in determining the amount of the credit under subsection 7a7 shall not be taken into account in determining a credit under any other provision of this chapter4 7#c7 ,limitation on wages taken into account ,the amount of wages taken into account under subsection 7a7 with respect to any employee shall not exceed an amount equal to the contribution and benefit base in effect under section #bcj of the ,social ,security ,act for the calendar year in which the taxable year begins4 4 7b7 ,credit allowed against alternative minimum tax ,section #ch7;c77#d77;,b7 of such ,code is amended by redesignating clauses 7x71 7xi71 and 7xii7 as clauses 7xi71 7xii71 and 7xiii71 respectively1 and by inserting after clause 7ix7 the following new clause3 7x7 the credit determined under section #de,u1 4 7c7 ,denial of deduction ,section #bhj;,c of such ,code is amended by adding at the end the following new subsection3 7i7 ,pharmaceutical manufacturing credit ,no deduction shall be allowed for that portion of the qualified production activity expenditures 7as defined in section #de,u7b77 otherwise allowable as a deduction for the taxable year which is equal to the amount of the pharmaceutical manufacturing credit determined for such taxable year under section #de,u7a74 4 7d7 ,part of general business credit ,section #ch7;b7 of such ,code is amended by striking plus at the end of paragraph 7#cb71 by striking the period at the end of paragraph 7#cc7 and inserting 1 plus1 and by adding at the end the following new paragraph3 7#cd7 the pharmaceutical manufacturing credit determined under section #de,u7a74 4 7e7 ,clerical amendment ,the table of sections for subpart ,d of part ,,iv of subchapter ,a of chapter #a is amended by adding at the end the following new item3 ,sec4 #de,u4 ,pharmaceutical manufacturing credit4 4 7f7 ,effective date ,the amendments made by this section shall apply to amounts paid or incurred after the date of the enactment of this ,act4