Medical Manufacturing, Economic Development, and Sustainability Act of 2023 or the MMEDS Act of 2023 This bill provides incentives for relocating medical manufacturing facilities in the United States and for manufacturing medical products (i.e., drugs and devices) in economically distressed zones. Specifically, the bill allows a income tax credit for 40% of the sum of wages paid in a medical product manufacturing economically distressed zone, employee fringe benefit expenses, and depreciation and amortization allowances with respect to qualified medical product manufacturing facility property, and a credit for economically distressed zone products and services acquired by domestic medical product manufacturers.. The bill also directs the Department of Health and Human Services to study the extent to which the health of aging individuals and vulnerable populations have been disproportionately harmed by the COVID-19 (i.e., coronavirus disease 2019) pandemic and prior epidemics and pandemics.
Impact
The legislation emphasizes support for economically distressed zones as defined by poverty and unemployment criteria. By designating specific areas as eligible for these incentives, the bill aims to redirect medical manufacturing jobs back to the United States from overseas, thus strengthening the national supply chain for healthcare products. Moreover, it encourages domestic production of essential medical products and services, which is crucial for responding to health crises, as evidenced during the COVID-19 pandemic.
Summary
SB33, known as the Medical Manufacturing, Economic Development, and Sustainability Act of 2023 (MMEDS Act), aims to revitalize domestic medical product manufacturing by providing robust incentives targeted at economically distressed areas within the United States. The bill facilitates the establishment of medical product manufacturing facilities by offering a tax credit amounting to 40% of qualifying wages, fringe benefits, and depreciation costs associated with such facilities. This measure is intended to enhance local economies by creating jobs in areas suffering from high unemployment and low labor force participation.
Contention
While proponents of SB33 argue that it will stimulate economic growth and ensure a more secure healthcare supply chain, critics may express concerns regarding the efficacy of tax incentives and whether they are sufficient to overcome existing barriers to business investment in underserved areas. There is also a need to ensure that the mechanisms for designating economically distressed zones do not inadvertently disadvantage other communities or establish a dependency on federal support, which could affect long-term economic viability.
Medical Manufacturing, Economic Development, and Sustainability Act of 2023 or the MMEDS Act of 2023 This bill provides incentives for relocating medical manufacturing facilities in the United States and for manufacturing medical products (i.e., drugs and devices) in economically distressed zones. Specifically, the bill allows a income tax credit for 40% of the sum of wages paid in a medical manufacturing economically distressed zone, employee fringe benefit expenses, and depreciation and amortization allowances with respect to qualified medical manufacturing facility property, and a credit for economically distressed zone products and services acquired by domestic medical manufacturers. The bill increases the credit rate for minority businesses.
This bill requires the Centers for Medicare & Medicaid Services to revise regulations so as to specifically require Medicare skilled nursing facilities and Medicaid nursing facilities to report the identity of medical directors and related information.
Facilitating the Reshoring of Energy Grid Component Manufacturing Act of 2023 This bill directs the Department of Energy (DOE) to establish a loan program for the production of energy grid products or components. Under the program, DOE may provide loans for activities related to projects that reequip, expand, or establish manufacturing facilities to produce energy grid products or their components. Energy grid products include large power transformers or any other electrical equipment commonly used for the transmission or distribution of electric energy by public electric utilities.
Medical Manufacturing, Economic Development, and Sustainability Act of 2023 or the MMEDS Act of 2023 This bill provides incentives for relocating medical manufacturing facilities in the United States and for manufacturing medical products (i.e., drugs and devices) in economically distressed zones. Specifically, the bill allows a income tax credit for 40% of the sum of wages paid in a medical manufacturing economically distressed zone, employee fringe benefit expenses, and depreciation and amortization allowances with respect to qualified medical manufacturing facility property, and a credit for economically distressed zone products and services acquired by domestic medical manufacturers. The bill increases the credit rate for minority businesses.