Supply Chain Security and Growth Act of 2025
Sponsored By: Representative Malliotakis, Nicole [R-NY-11]
Introduced
Summary
Creates a 40 percent investment tax credit to encourage reshoring of critical supply chain manufacturing into Puerto Rico and other U.S. possessions. The bill would target facilities that make active pharmaceutical ingredients, drugs, biological products, medical countermeasures, diagnostic devices, semiconductors and semiconductor equipment, aerospace equipment, and artificial nanomaterials.
Show full summary
- Manufacturers and investors would be eligible for a nonrefundable 40 percent investment credit on qualified property used in a certified critical supply chain facility placed in service after Dec. 31, 2024.
- Communities in high-poverty opportunity zones and U.S. possessions would be prioritized because the credit favors facilities in economically distressed census tracts and in Puerto Rico.
- The credit would be transferable and could be elected as an advance or refundable-like payment. It would also prevent the same facility from claiming the electricity production credit for the same years and would raise the deemed foreign tax credit for taxes paid to U.S. possessions from 80 percent to 100 percent.
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Bill Overview
Analyzed Economic Effects
2 provisions identified: 2 benefits, 0 costs, 0 mixed.
40% credit for factories in Puerto Rico and territories
This bill would create a 40% investment tax credit for new “critical supply chain” factories. Eligible property must be placed in service after December 31, 2024, be tangible and depreciable, and be integral to the facility. The facility’s main job would need to be making one of these: active drug ingredients, drugs, biologics, medical countermeasures, diagnostic devices, semiconductors or their tools, aerospace equipment, or artificial nanomaterials. The plant would have to be in Puerto Rico or a U.S. territory, and the owner could not be a prohibited foreign entity. Firms could transfer the credit or elect an advance, refund-like payment, and they could not also claim the section 45 electricity production credit for the same facility. Certain affiliated groups investing in high-poverty Opportunity Zones would be treated as one taxpayer for this credit.
Bigger foreign tax credit for territories
This bill would raise the deemed foreign tax credit for certain taxes paid to U.S. territories. For taxes paid or accrued after December 31, 2024, 100% of those taxes would count, instead of 80%. This could lower U.S. tax for firms and investors that have tested foreign income taxes in the territories.
Sponsors & CoSponsors
Sponsor
Malliotakis, Nicole [R-NY-11]
NY • R
Cosponsors
Rep. Panetta, Jimmy [D-CA-19]
CA • D
Sponsored 2/13/2025
Buchanan
FL • R
Sponsored 2/13/2025
Rep. Velázquez, Nydia M. [D-NY-7]
NY • D
Sponsored 2/13/2025
Kelly (PA)
PA • R
Sponsored 2/13/2025
Rescom. Hernández, Pablo Jose [D-PR-At Large]
PR • D
Sponsored 2/13/2025
Rep. Lawler, Michael [R-NY-17]
NY • R
Sponsored 2/13/2025
Rep. Ramirez, Delia C. [D-IL-3]
IL • D
Sponsored 3/14/2025
Costa
CA • D
Sponsored 3/18/2025
Soto
FL • D
Sponsored 3/26/2025
Rep. Tenney, Claudia [R-NY-24]
NY • R
Sponsored 3/31/2025
Rep. Fitzpatrick, Brian K. [R-PA-1]
PA • R
Sponsored 6/4/2025
Rep. Vindman, Eugene Simon [D-VA-7]
VA • D
Sponsored 9/9/2025
Roll Call Votes
No roll call votes available for this bill.
View on Congress.gov