Infant Formula Made in America Act of 2024
If enacted, HB 7744 would significantly affect the landscape of infant formula manufacturing by offering financial incentives to domestic producers. Eligible taxpayers will be encouraged to invest in the necessary equipment and infrastructure to manufacture eligible infant formula. Additionally, the bill sets a cap on the total amount of credits that can be allocated, which is $750 million, thereby potentially controlling the fiscal impact on the government while supporting American manufacturers.
House Bill 7744, titled the 'Infant Formula Made in America Act of 2024', aims to encourage domestic manufacturing of infant formula. The bill introduces a new investment credit for qualified taxpayers engaged in eligible infant formula manufacturing projects. Specifically, it allows a credit of 30% of the qualified investments made by eligible taxpayers, thus providing a favorable incentive to boost local production capabilities. This legislation is seen as a response to supply chain issues experienced in the recent past regarding infant formula availability in the United States.
Some points of contention surrounding HB 7744 relate to its limitations on eligible taxpayers, which define a 'qualified taxpayer' as those whose total global revenue does not exceed $750 million. Critics argue that this threshold may exclude larger companies that play a crucial role in the infant formula market, thus limiting the bill's effectiveness. Furthermore, there could be concerns regarding compliance and the bureaucratic process involved in applying for these credits, which may deter some companies from participating.