Medical Manufacturing EPA Compliance Credit

(a) In general Subpart E of part IV of subchapter A of chapter 1 of the Internal Revenue Code of 1986, as amended by the preceding provisions of this Act, is amended by adding at the end the following new section: 48G. Medical Manufacturing EPA Compliance Credit (a) In general For purposes of section 46, the medical manufacturing EPA compliance credit determined under this section for any taxable year is the applicable percentage of the basis of any qualifying medical manufacturing EPA compliance property placed in service during such taxable year. (b) Applicable percentage For purposes of this section, the term applicable percentage means— (1) 30 percent in the case of qualifying medical manufacturing EPA compliance property which is placed in service before January 1, 2031, (2) 20 percent in the case of qualifying medical manufacturing EPA compliance property which is placed in service during calendar year 2031, (3) 10 percent in the case of qualifying medical manufacturing EPA compliance property which is placed in service during calendar year 2032, and (4) 0 percent in the case of qualifying medical manufacturing EPA compliance property which is placed in service after December 31, 2032. (c) Qualifying medical manufacturing EPA compliance property For purposes of this section, the term qualifying medical manufacturing EPA compliance equipment means property— (1) which is used by the taxpayer in the trade or business of manufacturing a specified medical product (as defined in section 45BB(c)(4)(B)), (2) which is used to meet emissions limits under the Clean Air Act or wastewater standards under the Clean Water Act, (3) which is placed in service in the United States by the taxpayer, (4) with respect to which depreciation is allowable, and (5) which is not qualifying advanced medical manufacturing equipment (as defined in section 48F). (d) Certain qualified progress expenditures rules made applicable Rules similar to the rules of subsections (c)(4) and (d) of section 46 (as in effect on the day before the enactment of the Revenue Reconciliation Act of 1990) shall apply for purposes of this section. (e) Regulations The Secretary shall prescribe such regulations or other guidance as may be necessary to carry out the purposes of this section, including regulations which prevent abuse or fraud.. (b) Treatment under base erosion tax Section 59A(b)(1)(B)(ii) of such Code, as amended by the preceding provisions of this Act, is further amended by striking plus at the end of subclause (III), by redesignating subclause (IV) as subclause (V), and by inserting after subclause (III) the following new subclause: (IV) the credit allowed under section 46 for the taxable year which is properly allocable to the medical manufacturing EPA compliance credit determined under section 48G(a), plus. (c) Part of investment credit Section 46 of such Code, as amended by the preceding provisions of this Act, is amended by striking and at the end of paragraph (7), by striking the period at the end of paragraph (8) and inserting, and, and by adding at the end the following new paragraph: (9) the medical manufacturing EPA compliance credit.. (d) Clerical amendment The table of sections for subpart D of part IV of subchapter A of chapter 1 of such Code, as amended by the preceding provisions of this Act, is amended by adding at the end the following new item: Sec. 48G. Medical manufacturing EPA compliance credit.. (e) Effective date The amendments made by this section shall apply to periods after the date of the enactment of this section under rules similar to the rules of section 48(m) of the Internal Revenue Code of 1986 (as in effect on the date of the enactment of the Revenue Reconciliation Act of 1990).