S.Amdt. 2503

SA 2503. Mrs. LOEFFLER (for herself, Ms. Ernst, and Mr. Cruz)
submitted an amendment intended to be proposed to amendment SA 2499
proposed by Mr. McConnell to the bill S. 178, to condemn gross human
rights violations of ethnic Turkic Muslims in Xinjiang, and calling for
an end to arbitrary detention, torture, and harassment of these
communities inside and outside China; which was ordered to lie on the
table; as follows:

At the appropriate place, insert the following:

SEC. 3. TAX INCENTIVES FOR RELOCATING MANUFACTURING OF
PHARMACEUTICALS AND MEDICAL SUPPLIES AND
DEVICES TO THE UNITED STATES.

(a) Accelerated Depreciation for Nonresidential Real
Property.--Section 168 of the Internal Revenue Code of 1986
is amended by adding at the end the following new subsection:
``(n) Accelerated Depreciation for Nonresidential Real
Property Acquired in Connection With the Relocation of
Manufacturing of Pharmaceuticals and Medical Supplies and
Devices to the United States.--
``(1) Treatment as 20-year property.--For purposes of this
section, qualified nonresidential real property shall be
treated as 20-year property.
``(2) Application of bonus depreciation.--For application
of bonus depreciation to qualified nonresidential real
property, see subsection (k).
``(3) Qualified nonresidential real property.--For purposes
of this subsection, the term `qualified nonresidential real
property' means nonresidential real property placed in
service in the United States by a qualified manufacturer if
such property is acquired by such qualified manufacturer in
connection with a qualified relocation of manufacturing.
``(4) Qualified manufacturer.--For purposes of this
subsection, the term `qualified manufacturer' means any
person engaged in the trade or business of manufacturing a
qualified medical product.
``(5) Qualified medical product.--For purposes of this
subsection, the term `qualified medical product' means any
pharmaceutical, medical device, or medical supply.
``(6) Qualified relocation of manufacturing.--For purposes
of this subsection--
``(A) In general.--The term `qualified relocation of
manufacturing' means, with respect to any qualified
manufacturer, the relocation of the manufacturing of a
qualified medical product from a foreign country to the
United States.
``(B) Relocation of property not required.--For purposes of
subparagraph (A), manufacturing shall not fail to be treated
as relocated merely because property used in such
manufacturing was not relocated.
``(C) Relocation of not less than equivalent productive
capacity required.--For purposes of subparagraph (A),
manufacturing shall not be treated as relocated unless the
property manufactured in the United States is substantially
identical to the property previously manufactured in a
foreign country and the increase in the units of production
of such property in the United States by the qualified
manufacturer is not less than the reduction in the units of
production of such property in such foreign country by such
qualified manufacturer.
``(7) Application to possessions of the united states.--For
purposes of this subsection, the term `United States'
includes any possession of the United States.''.
(b) Exclusion of Gain on Disposition of Property in
Connection With Qualified Relocation of Manufacturing.--
(1) In general.--Part III of subchapter B of chapter 1 of
such Code is amended by inserting after section 139H the
following new section:

``SEC. 139I. EXCLUSION OF GAIN ON DISPOSITION OF PROPERTY IN
CONNECTION WITH QUALIFIED RELOCATION OF
MANUFACTURING.

``(a) In General.--In the case of a qualified manufacturer,
gross income shall not include gain from the sale or exchange
of qualified relocation disposition property.
``(b) Qualified Relocation Disposition Property.--For
purposes of this section, the term `qualified relocation
disposition property' means any property which--
``(1) is sold or exchanged by a qualified manufacturer in
connection with a qualified relocation of manufacturing, and
``(2) was used by such qualified manufacturer in the trade
or business of manufacturing a qualified medical product in
the foreign country from which such manufacturing is being
relocated.
``(c) Other Terms.--Terms used in this section which are
also used in subsection (n) of section 168 shall have the
same meaning when used in this section as when used in such
subsection.''.
(2) Clerical amendment.--The table of sections for part III
of subchapter B of chapter 1 of such Code is amended by
inserting after the item relating to section 139H the
following new item:

``Sec. 139I. Exclusion of gain on disposition of property in connection
with qualified relocation of manufacturing.''.

(c) Effective Dates.--
(1) Accelerated depreciation.--The amendment made by
subsection (a) shall apply to property placed in service
after the date of the enactment of this Act.
(2) Exclusion of gain.--The amendments made by subsection
(b) shall apply to sales and exchanges after the date of the
enactment of this Act.
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