HR3042119th CongressWALLET

MMEDS Act of 2025

Sponsored By: Representative Malliotakis

Introduced

Summary

This bill would create a targeted program to rebuild and expand U.S. medical manufacturing in economically distressed zones by offering large tax incentives and by prioritizing development of population health products for vulnerable groups. It focuses on credits for jobs, benefits, capital spending, and onshore supply chains to make medical production more resilient and locally anchored.

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  • Workers in designated economically distressed zones could benefit from employers claiming a credit equal to 40 percent of qualifying EDZ wages, allocable fringe benefits, and depreciation for facility property tied to medical manufacturing. Employers must follow wage limits tied to Social Security contribution rules.
  • Domestic medical manufacturers would get extra tax breaks for buying EDZ-made inputs and services, with credit rates of 30 percent for purchases from unrelated sellers and 5 percent for related parties. The bill also boosts incentives for repatriated facilities and allows a 100 percent expensing election for certain repatriated property.
  • Distressed communities and vulnerable populations are central to the plan. EDZs are set by poverty triggers like a 30 percent poverty rate or a 25 percent threshold with additional criteria. The bill also expands federal authority to accelerate R&D, manufacturing, stockpiling, and timely delivery of population health products for at-risk Americans and requires a 90-day report on health disparities and incentives.

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Bill Overview

Analyzed Economic Effects

4 provisions identified: 4 benefits, 0 costs, 0 mixed.

100% expensing for onshored medical plants

If enacted, qualifying onshored or population‑health facilities could elect to expense 100% of the cost of certain plant property in the year it is placed in service. If you make this election, you would not count that property’s depreciation in the 40% facility credit, but you could deduct the full cost under bonus depreciation. The election would be made in the time and manner set by Treasury.

Credit for buying from distressed-area suppliers

If enacted, eligible U.S. medical manufacturers could claim a credit for purchases of products and services made in distressed zones. The base credit would be 30% for purchases from unrelated sellers and 5% for related parties. Higher rates could apply if the facility is an onshored plant moved from a supply‑risk country or a site making an HHS‑identified population health product. To qualify, the zone inputs must be integrated into, or needed to produce, the manufacturer’s medical product.

Large tax credit for medical manufacturers

If enacted, medical manufacturers with a qualified facility in a designated distressed zone could get a credit equal to 40% of EDZ wages, certain benefits, and facility depreciation each year. Wages per worker would be capped at the Social Security wage base, and double‑dipping with other similar credits would be barred. Zones would be set using five‑year poverty tests (30% automatic, or at least 25% with extra distress), designations could be made for 10 years and would last 15 years, including territories. Treasury would add a new tax subchapter to run these incentives, starting for tax years that begin after December 31, 2024.

Faster development and delivery of population health products

If enacted, HHS would define and prioritize population health products that protect vulnerable groups such as children, pregnant people, older adults, and minority communities. HHS could focus advanced research, manufacturing, and stockpiling on these products and related platform technologies. During epidemics and pandemics, HHS would work with CMS, Defense, VA, FDA, and others to get approved products to at‑risk people quickly and without gaps.

Sponsors & CoSponsors

Sponsor

Malliotakis

NY • R

Cosponsors

  • Torres (NY)

    NY • D

    Sponsored 4/28/2025

  • Salazar

    FL • R

    Sponsored 4/28/2025

  • Soto

    FL • D

    Sponsored 4/28/2025

  • Hurd (CO)

    CO • R

    Sponsored 4/28/2025

  • Gimenez

    FL • R

    Sponsored 5/5/2025

  • Quigley

    IL • D

    Sponsored 5/8/2025

  • Rescom. Hernández, Pablo Jose [D-PR-At Large]

    PR • D

    Sponsored 5/8/2025

  • Buchanan

    FL • R

    Sponsored 5/15/2025

  • Tenney

    NY • R

    Sponsored 6/3/2025

  • Gooden

    TX • R

    Sponsored 6/24/2025

Roll Call Votes

No roll call votes available for this bill.

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