What does Preamble of Supply Chain Security and Growth Act of 2025 do?

This bill proposes to amend the Internal Revenue Code of 1986. The stated purpose is to establish a critical supply chains reshoring investment tax credit.

What does SHORT TITLE. of Supply Chain Security and Growth Act of 2025 do?

This bill is formally titled the Supply Chain Security and Growth Act of 2025.

What does CRITICAL SUPPLY CHAINS RESHORING INVESTMENT CREDIT. of Supply Chain Security and Growth Act of 2025 do?

This section amends the Internal Revenue Code of 1986 to establish a Critical Supply Chains Reshoring Investment Credit. The credit is equal to 40 percent of the qualified investment in a critical supply chain facility placed in service during a taxable year. A 'qualifying taxpayer' is one that is not a 'prohibited foreign entity,' which includes entities linked to foreign governments of concern or nations. Qualified investment involves the basis of qualified property used in a critical supply chain facility. Qualifying property must be integral to the facility's operation, tangible, depreciable, and either constructed or acquired with original use commencing with the taxpayer. Critical supply chain facilities manufacture specific items including active pharmaceutical ingredients, drugs, biological products, medical countermeasure, medical diagnostic devices, semiconductors, aerospace equipment, and artificial nanomaterials. These facilities must be located in a specified possession or Puerto Rico. Members of a qualified affiliated group are treated as a single taxpayer for credit purposes. The credit is not available for facilities also eligible for the Electricity Production Credit. Taxpayers can elect to be treated as an applicable entity for the purpose of receiving the credit. The credit can be transferred. The amendments apply to property placed in service after December 31, 2024.

What does INCREASE IN DEEMED CREDIT FOR TAXES PAID TO POSSESSION OF THE of Supply Chain Security and Growth Act of 2025 do?

This section amends Section 960(d) of the Internal Revenue Code of 1986. The amendment increases the deemed credit for tested foreign income taxes paid or accrued to a possession of the United States from 80 percent to 100 percent. The amendments apply to taxes paid or accrued after December 31, 2024.

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Supply Chain Security and Growth Act of 2025

Last updated: 2/13/2025 · Introduced: 2/13/2025

Author: Nicole Malliotakis (R-NY)

TL;DR (AI)

This bill establishes a new tax credit equal to 40% of qualified investments in facilities reshoring the production of critical goods, such as semiconductors and pharmaceuticals, located in U.S. territories.
The bill increases the credit for foreign taxes paid to U.S. possessions from 80% to 100%, incentivizing investment in those areas.
Taxpayers who meet specific criteria, including restrictions on foreign government ties, can elect to transfer the reshoring investment credit or be treated as an applicable entity to receive it.

119th Congressin committeeOfficial page

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Other Sections

Includes provisions on preamble, short title., and 2 more.

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