,i  #aag? ,,congress  #b;d ,session  ,h4
 ,r4 #gaff  ,,9 ,,! ,,h\se ,,(          
,,repres5tatives  ,m>* #ah1 #bjbb,mr4   
,mooney introduc$ ! foll[+ bill2 :i* 0  
ref]r$ to ! ,committee on ,ways & ,means
  ,a ,,bill  ,to am5d ! ,int]nal ,rev5ue
 ,code ( #aihf to provide = ext5d$      
exp5s+ ( ph>maceutical manufactur+      
prop]ty1 & = o!r purposes4  #a4 ,%ort   
title ,?is ,act may be cit$ z ! ,make   
,m$ic9e 9 ,am]ica ,aga9 ,act4  #b4      
,ext5sion & expansion ( co/ exp5s+      
provisions = ,ph>maceutical             
,manufactur]s  7a7 ,all[ance ( bonus    
depreciation = ph>maceutical manufactur+
 prop]ty ,section #afh7k77#b77;,a7 ( !  
,int]nal ,rev5ue ,code ( #aihf is       
am5d$-- 7#a7 9 clause 7i71 by /rik+ or 9
 subclause 7,,iii71 by /rik+ or 9       
subclause 7,,iv71 by add+ or at ! end ( 
subclause 7,v71 & by add+ at ! end !    
foll[+ new subclause3  7,,vi7 :i* is    
ph>maceutical manufactur+ prop]ty 7z    
def9$ 9 p>agraph #aa74  1 &  7#b7 9     
clause 7iii71 by /rik+ ! p]iod & add+ at

 ! end 7o!r ?an ph>maceutical           
manufactur+ prop]ty744  7b7 ,application
 ( applicable p]c5tage ,section         
#afh7k77#f7 ( su* ,code is am5d$ by add+
 at ! end ! foll[+ new subp>agraph3     
7,d7 ,rule = ph>maceutical manufactur+  
prop]ty ,not)/&+ any o!r provisions (   
?is p>agraph1 9 ! case ( any qualifi$   
prop]ty :i* is ph>maceutical manufactur+
 prop]ty1 ! t]m applicable p]c5tage     
means1 9 ! case ( prop]ty plac$ 9 s]vice
 aft] ,decemb] #ca1 #bjbc1 #ajj p]c5t4  
4  7c7 ,ph>maceutical manufactur+       
prop]ty def9$ ,section #afh7k7 ( su*    
,code is am5d$ by add+ at ! end ! foll[+
 new p>agraph3  7#aa7 ,ph>maceutical    
manufactur+ prop]ty def9$ ,= purposes ( 
?is subsection1 ! t]m ph>maceutical     
manufactur+ prop]ty means prop]ty1      
equipm5t1 build+s1 or facilities plac$ 9
 s]vice 9 ! ,unit$ ,/ates = ! purpose ( 
facilitat+ ph>maceutical manufactur+4   
7a7 ,effective date ,! am5dm5ts made by 
?is section %all apply to prop]ty plac$ 
9 s]vice aft] ,decemb] #ca1 #bjbb4  4   

#c4 ,ph>maceutical 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  
,ph>maceutical manufactur+ cr$it  7a7 ,9
 g5]al ,= purposes ( section #ch1 !     
ph>maceutical manufactur+ cr$it = !     
taxable ye> %all be an am\nt equal to   
#ej p]c5t ( ! qualifi$ production       
activity exp5ditures ( ! taxpay] = !    
taxable ye>4  7b7 ,qualifi$ production  
activity exp5ditures ,= purposes ( ?is  
section-- 7#a7 ,9 g5]al ,! t]m qualifi$ 
production activity exp5ditures means-- 
7,a7 wages paid or incurr$ to an        
employee ( ! taxpay] = s]vices p]=m$ by 
su* employee 9 ! conduct ( a qualifi$   
ph>maceutical manufactur+ bus9ess 9 !   
,unit$ ,/ates 7b only if ! employee's   
pr9cipal place ( employm5t is 9 ! ,unit$
 ,/ates71  7,b7 am\nts paid or incurr$ =
 any tangible p]sonal prop]ty 7:e!r or n
 o!rwise prop]ly *>geable to capital    
acc\nt7 us$ 9 ! conduct ( a qualifi$    

ph>maceutical manufactur+ bus9ess 9 !   
,unit$ ,/ates 7b only if ! prim>y use ( 
su* prop]ty is 9 ! ,unit$ ,/ates71 &    
7,c7 any direct or indirect co/s paid or
 incurr$ 9 ! conduct ( a qualifi$       
ph>maceutical manufactur+ bus9ess 9 !   
,unit$ ,/ates4  7#b7 ,qualifi$          
ph>maceutical manufactur+ bus9ess  7,a7 
,9 g5]al ,! t]m qualifi$ ph>maceutical  
manufactur+ bus9ess means ! trade or    
bus9ess ( produc+ ph>maceuticals &      
active ph>maceutical +r$i5ts4  7,b7     
,active ph>maceutical +r$i5t ,! t]m     
active ph>maceutical +r$i5ts has ! mean+
 giv5 to su* t]m 9 section #bjg4a (     
title #ba1 ,code ( ,f$]al ,regulations  
7& any successor regulations74  7,c7    
,ph>maceutical ,! t]m ph>maceutical--   
7i7 means any drug 7z def9$ 9 section   
#bja ( ! ,f$]al ,food1 ,drug1 &         
,cosmetic ,act71 &  7ii7 includes a     
biological product 7z def9$ 9 section   
#cea ( ! ,public ,heal? ,s]vice ,act74  
7#c7 ,c]ta9 heal? plan exp5ses treat$ z 
wages  7,a7 ,9 g5]al ,= purposes (      

p>agraph 7#a71 ! t]m wages %all include 
s mu* ( ! eligible employ]'s qualifi$   
heal? plan exp5ses z are prop]ly        
allocable to su* wages4  7,b7 ,qualifi$ 
heal? plan exp5ses ,= purposes ( ?is    
p>agraph1 ! t]m qualifi$ heal? plan     
exp5ses means am\nts paid or incurr$ by 
! eligible employ] to provide & ma9ta9 a
 gr\p heal? plan 7z def9$ 9 section     
#ejjj7;b77#a771 b only to ! ext5t t su* 
am\nts are exclud$ f ! gross income (   
employees by reason ( section #ajf7;a7 (
 su* ,code4  7,c7 ,allocation rules ,=  
purposes ( ?is p>agraph1 qualifi$ heal? 
plan exp5ses %all be allocat$ to        
qualifi$ wages 9 su* mann] z ! ,secret>y
 may prescribe4 ,except z o!rwise       
provid$ by ! ,secret>y1 su* allocation  
%all be treat$ z prop]ly made if made on
 ! basis ( be+ pro rata among employees 
& pro rata on ! basis ( p]iods ( cov]age
 7relative to ! p]iods to :i* su* wages 
relate74  7#d7 ,unit$ ,/ates ,! t]m     
,unit$ ,/ates means ! #ej ,/ates & !    
,di/rict ( ,columbia4  7c7 ,special     

rules  7#a7 ,r$uction 9 basis ,if a     
cr$it is det]m9$ "u ?is section )       
respect to any prop]ty by reason ( any  
qualifi$ production activity exp5ditures
 describ$ 9 subsection 7b77#a77;,b71 !  
basis ( su* prop]ty %all be r$uc$ by !  
am\nt ( ! cr$it s det]m9$4  7#b7        
,coord9ation ) o!r cr$its ,any qualifi$ 
production activity exp5ditures tak5    
into acc\nt 9 det]m9+ ! am\nt ( ! cr$it 
"u subsection 7a7 %all n be tak5 into   
acc\nt 9 det]m9+ a cr$it "u any o!r     
provision ( ?is *apt]4  7#c7 ,limitation
 on wages tak5 into acc\nt ,! am\nt (   
wages tak5 into acc\nt "u subsection 7a7
 ) respect to any employee %all n exce$ 
an am\nt equal to ! contribution &      
b5efit base 9 effect "u section #bcj ( !
 ,social ,security ,act = ! cal5d> ye> 9
 :i* ! taxable ye> beg9s4  4  7b7 ,cr$it
 all[$ aga9/ alt]native m9imum tax      
,section #ch7;c77#d77;,b7 ( su* ,code is
 am5d$ by r$esignat+ clauses 7x71 7xi71 
& 7xii7 z clauses 7xi71 7xii71 & 7xiii71
 respectively1 & by ins]t+ aft] clause  

7ix7 ! foll[+ new clause3  7x7 ! cr$it  
det]m9$ "u section #de,u1  4  7c7 ,d5ial
 ( d$uction ,section #bhj;,c ( su* ,code
 is am5d$ by add+ at ! end ! foll[+ new 
subsection3  7i7 ,ph>maceutical         
manufactur+ cr$it ,no d$uction %all be  
all[$ = t portion ( ! qualifi$          
production activity exp5ditures 7z def9$
 9 section #de,u7b77 o!rwise all[able z 
a d$uction = ! taxable ye> :i* is equal 
to ! am\nt ( ! ph>maceutical manufactur+
 cr$it det]m9$ = su* taxable ye> "u     
section #de,u7a74  4  7d7 ,"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 ! ph>maceutical manufactur+ cr$it 
det]m9$ "u section #de,u7a74  4  7e7    
,cl]ical am5dm5t ,! table ( sections =  
subp>t ,d ( "p ,,iv ( sub*apt] ,a (     
*apt] #a is am5d$ by add+ at ! end !    
foll[+ new item3  ,sec4 #de,u4          
,ph>maceutical manufactur+ cr$it4  4    

7f7 ,effective date ,! am5dm5ts made by 
?is section %all apply to am\nts paid or
 incurr$ aft] ! date ( ! enactm5t ( ?is 
,act4