,i #aaith ,,congress #ast ,session ,h4 ,r4 #acbh ,,in ,,the ,,house ,,of ,,representatives ,february #ac1 #bjbe,ms4 ,malliotakis 7for herself1 ,mr4 ,panetta1 ,mr4 ,buchanan1 ,ms4 ,velzquez1 ,mr4 ,kelly of ,pennsylvania1 ,mr4 ,hernndez1 and ,mr4 ,lawler7 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 establish the critical supply chains reshoring investment tax credit4 #a4 ,short title ,this ,act may be cited as the ,supply ,chain ,security and ,growth ,act of #bjbe4 #b4 ,critical supply chains reshoring investment credit 7a7 ,in general ,subpart ,e of part ,,iv of subchapter ,a of the ,internal ,revenue ,code of #aihf is amended by inserting after section #dh;,e the following new section3 #dh;,f4 ,critical supply chains reshoring investment credit 7a7 ,in general ,for purposes of section #df1 in the case of a qualifying taxpayer1 the critical supply chains reshoring investment credit is an amount equal to #dj percent of the qualified investment with respect to any critical supply chain facility placed in service during such taxable year4 7b7 ,definitions and special rules ,for purposes of this section-- 7#a7 ,qualifying taxpayer 7,a7 ,in general ,the term qualifying taxpayer means a taxpayer that is not a prohibited foreign entity4 7,b7 ,prohibited foreign entity ,for purposes of this paragraph1 the term prohibited foreign entity means-- 7i7 any foreign entity of concern 7as defined in section #djbjg7;a77#e7 of the ,infrastructure ,investment and ,jobs ,act71 7ii7 any entity with respect to which the government of a covered nation has the right or power 7directly or indirectly7 to appoint or approve the appointment of a covered officer1 or 7iii7 any entity #be percent or more of the capital or profits interests of which are owned 7directly or indirectly7 in the aggregate by #a or more of the following3 7,i7 ,a covered nation or an entity described in clause 7i7 or 7ii74 7,,ii7 ,a citizen1 national1 or resident of a covered nation4 7,,iii7 ,an entity organized under the laws of a covered nation4 7,c7 ,covered officer ,for purposes of this paragraph1 the term covered officer means-- 7i7 any member of the board of directors1 board of supervisors1 or an equivalent governing body1 7ii7 the president1 senior vice president1 chief executive officer1 chief operating officer1 chief financial officer1 or general counsel1 or 7iii7 any individual who performs duties usually associated with a title listed in clause 7i7 or 7ii74 7,d7 ,covered nation ,for purposes of this paragraph1 the term covered nation has the meaning given such term in section #dhgb7;d7 of title #aj1 ,united ,states ,code4 7#b7 ,qualified investment ,the qualified investment with respect to any critical supply chain facility for any taxable year is an amount equal to the basis of any qualified property placed in service by the taxpayer during such taxable year which is part of a such facility4 7#c7 ,qualifying property 7,a7 ,in general ,the term qualifying property means property-- 7i7 that is integral to the operation of a critical supply chain facility1 7ii7 that is tangible property1 7iii7 with respect to which depreciation 7or amortization in lieu of depreciation7 is allowable1 and 7iv7 which is-- 7,i7 constructed1 reconstructed1 or erected by the taxpayer1 or 7,,ii7 acquired by the taxpayer if the original use of such property commences with the taxpayer4 7,b7 ,reconstructed property ,property shall be treated as reconstructed for purposes of this paragraph if improvements to such property satisfy the substantial improvement test of section #adjj,z-#b7;d77#b77;,d77ii74 7#d7 ,critical supply chain facility ,the term critical supply chain facility means a facility-- 7,a7 the primary purpose of which is the manufacturing of-- 7i7 ,an active pharmaceutical ingredient 7as defined in section #bjag4a of title #ba1 ,code of ,federal ,regulations 7or any successor regulations771 7ii7 ,a drug 7as defined in section #bja7;g7 of the ,federal ,food1 ,drug1 and ,cosmetic ,act71 7iii7 ,a biological product 7as defined in section #cea7;i77#a7 of the ,public ,health ,service ,act71 7iv7 ,a medical countermeasure 7as defined in section #cai;,f-#c7;i77#a7 of the ,public ,health ,service ,act71 7v7 ,a medical diagnostic device 7as defined in section #bja7;h7 of the ,federal ,food1 ,drug1 and ,cosmetic ,act7 intended for use in the diagnosis of disease or other conditions1 7vi7 ,semiconductors or semiconductor manufacturing equipment1 7vii7 ,aerospace equipment as defined under ,north ,american ,industry ,classification ,code #ccfd1 or 7viii7 ,artificial nanomaterials1 and 7,b7 located in-- 7i7 a specified possession within the meaning of section #icg7;c71 7ii7 or ,puerto ,rico4 7#e7 ,aggregation rule 7,a7 ,in general ,members of a qualified affiliated group shall be treated as a single taxpayer4 7,b7 ,qualified affiliated group 7i7 ,in general ,the term qualified affiliated group means an affiliated group 7as defined in section #aejd7;a71 determined without regard to section #aejd7;b77#c77 at least #a member of which has made a qualified investment in a critical supply chain facility located in an economically distressed zone4 7ii7 ,economically distressed zone ,for purposes of this subparagraph1 the term economically distressed zone means a population census tract that-- 7,i7 is a qualified opportunity zone 7as defined in section #adjjz-#a7;a771 and 7,,ii7 has a poverty rate of not less than #cj percent4 7#f7 ,exemption from certain special rules ,the credit determined under subsection 7a7 shall be determined without regard to paragraphs 7#a7 and 7#d7 of section #ej7;b74 4 7b7 ,coordination between critical supply chains reshoring credit and electricity production credit ,section #de7;e7 of such ,code is amended by adding at the end the following new subsection3 7e7 ,coordination with critical supply chains reshoring investment credit ,the term qualified facility shall not include any facility if a credit is allowed under section #dh;,f with respect to such facility for the taxable year or any prior taxable year4 4 7c7 ,elective payment allowed 7#a7 ,in general ,section #fdag7;b7 of such ,code is amended by adding at the end the following3 7#ac7 ,the critical supply chains reshoring investment credit determined under section #dh;,f4 4 7#b7 ,election to be treated as applicable entity ,section #fdag7;d77#a7 is amended-- 7,a7 by redesignating subparagraph 7,e7 as subparagraph 7,f71 and 7,b7 by inserting after subparagraph 7,d7 the following new subparagraph3 7,e7 ,election with respect to critical supply chains reshoring credit ,if a taxpayer other than an entity described in subparagraph 7,a7 makes an election under this subparagraph with respect to any taxable year in which such taxpayer has placed in service a critical supply chain facility 7as defined in section #dh;,f7b77#d771 such taxpayer shall be treated as an applicable entity for purposes of this section for such taxable year1 but only with respect to the credit described in subsection 7b77#ac74 4 7d7 ,credit made transferable ,section #fdah7;f77#a77;,a7 of such ,code is amended by adding at the end the following3 7xii7 ,the critical supply chains reshoring investment credit determined under section #dh;,f4 4 7e7 ,credit included in investment credit ,section #df of such ,code is amended by striking and at the end of paragraph 7#f71 by striking the period at the end of paragraph 7#g7 and inserting 1 and1 and by adding at the end the following new paragraph3 7#h7 the critical supply chains reshoring investment credit4 4 7f7 ,effective date ,the amendments made by this section shall apply to property placed in service after ,december #ca1 #bjbd4 #c4 ,increase in deemed credit for taxes paid to possession of the ,united ,states 7a7 ,in general ,section #ifj7;d7 of the ,internal ,revenue ,code of #aihf is amended by adding at the end the following new paragraph3 7#d7 ,increase for taxes paid to possession of ,united ,states ,in the case of tested foreign income taxes paid or accrued to a possession of the ,united ,states1 paragraph 7#a7 shall be applied by substituting #ajj percent for #hj percent4 4 7b7 ,effective date ,the amendments made by this section shall apply to taxes paid or accrued after ,december #ca1 #bjbd4