Credits for production of qualified personal protective equipment and investments in personal protective equipment manufacturing property

(a) Production of qualified personal protective equipment (1) In general Subpart D of part IV of subchapter A of chapter 1 of the Internal Revenue Code of 1986 is amended by adding at the end the following new section: 45BB. Credit for production of qualified personal protective equipment (a) In general For purposes of section 38, the personal protective equipment production credit for any taxable year is an amount equal to the sum of the credit amounts determined under subsection (b) with respect to each item of qualified personal protective equipment which is— (1) produced by the taxpayer, and (2) during the taxable year, sold by such taxpayer to an unrelated person. (b) Credit amount The amount determined under this subsection with respect to any item of qualified personal protective equipment shall be equal to— (1) in the case of an N95 respirator mask, $0.25, (2) in the case of a surgical mask, $0.10, (3) in the case of a medical glove, $0.05, (4) in the case of a surgical gown, $0.50, and (5) in the case of a ventilator or any other major equipment which has been designated by the Secretary of Health and Human Services for purposes of this section, $250. (c) Qualified personal protective equipment For purposes of this section, the term qualified personal protective equipment means any tangible personal property which— (1) is described in subsection (b), (2) is produced in the United States, (3) consists of— (A) in the case of any equipment produced during calendar year 2026 or 2027, not less than 60 percent domestic content, and (B) in the case of any equipment produced after December 31, 2027, not less than 75 percent domestic content, and (4) has been certified by the Secretary of Health and Human Services as satisfying applicable Federal safety standards. (d) Termination This section shall not apply to any qualified personal protective equipment produced after December 31, 2035.. (2) Credit to be part of general business credit Subsection (b) of section 38 of such Code is amended by striking plus at the end of paragraph (40), by striking the period at the end of paragraph (41) and inserting, plus, and by adding at the end the following new paragraph: (42) the personal protective equipment production credit determined under section 45BB(a).. (b) Investment credit in lieu of production credit (1) In general Section 46 of the Internal Revenue Code of 1986 is amended by striking and at the end of paragraph (6), by striking the period at the end of paragraph (7) and inserting, and, and by adding at the end the following new paragraph: (8) the personal protective equipment investment credit.. (2) Personal protective equipment investment credit Subpart E of part IV of subchapter A of chapter 1 of such Code is amended by inserting after section 48E the following: 48F. Investment credit for personal protective equipment manufacturing property (a) In general For purposes of section 46, the personal protective equipment investment credit for any taxable year is an amount equal to 20 percent of the qualified investment for such taxable year with respect to any PPE manufacturing facility of a taxpayer. (b) Qualified investment (1) In general For purposes of subsection (a), the qualified investment with respect to any PPE manufacturing facility for any taxable year is the basis of any personal protective equipment manufacturing property placed in service by the taxpayer during such taxable year which is part of a PPE manufacturing facility. (2) Personal protective equipment manufacturing property (A) In general For purposes of this section, the term personal protective equipment manufacturing property means property— (i) which is tangible property, (ii) with respect to which depreciation (or amortization in lieu of depreciation) is allowable, (iii) which is— (I) constructed, reconstructed, or erected by the taxpayer, or (II) acquired by the taxpayer if the original use of such property commences with the taxpayer, (iv) which consists of— (I) in the case of any property placed in service during calendar year 2026 or 2027, not less than 60 percent domestic content, and (II) in the case of any property placed in service after December 31, 2027, not less than 75 percent domestic content, and (v) which is integral to the operation of the PPE manufacturing facility. (B) Buildings and structural components Rules similar to the rules under section 48D(b)(2)(B) shall apply for purposes of this paragraph. (3) PPE manufacturing facility For purposes of this section, the term PPE manufacturing facility means a facility located in the United States which is used predominately in the production of qualified personal protective equipment (as defined in section 45BB(c)). (c) Coordination with personal protective equipment production credit If a credit is allowed under this section for any taxable year with respect to any personal protective equipment manufacturing property placed in service by the taxpayer during such taxable year which is part of a PPE manufacturing facility, no credit shall be allowed under section 45BB for any qualified personal protective equipment (as defined in section 45BB(c)) which is produced at such PPE manufacturing facility. (d) Termination This section shall not apply to any personal protective equipment manufacturing property which is placed in service after December 31, 2035.. (c) Clerical amendments (1) The table of sections for subpart D of part IV of subchapter A of chapter 1 of the Internal Revenue Code of 1986 is amended by adding at the end the following new item: Sec. 45BB. Credit for production of qualified personal protective equipment.. (2) The table of sections for subpart E of part IV of subchapter A of chapter 1 of such Code is amended by adding at the end the following new item: Sec. 48F. Investment credit for personal protective equipment manufacturing property.. (d) Effective dates The amendments made by this section shall apply to qualified personal protective equipment produced, and personal protective equipment manufacturing property placed in service, after December 31, 2025.