Carter, Scott, Rice, Soto, Cartwright Reintroduce Proposal to Encourage America’s Pharmaceutical Independence
Jun 16 2021
Made In America Act Creates New Tax Incentive In Opportunity Zones To Bring Pharmaceutical Manufacturing Back To The United States
WASHINGTON D.C. – Congressman Earl L. "Buddy" Carter (R-Ga.), Senator Tim Scott (R-Sc.), Congressman Tom Rice (R-Sc.), Congressman Darren Soto (D-Fl.) and Congressman Matt Cartwright (D-Pa.) reintroduced a proposal today to make the U.S. pharmaceutical supply chain less dependent on foreign countries like China.
According to the Food and Drug Administration, approximately 72 percent of active pharmaceutical ingredients (API) used in the U.S. drug supply are manufactured in more than 150 countries, with 13 percent coming from China alone. The Manufacturing API, Drugs, and Excipients (MADE) in America Act will work to mitigate drug shortages while incentivizing the domestic manufacturing of drugs, API, personal protective equipment (PPE), and diagnostics. This will be achieved through a new tax credit for manufacturers that operate in certain American Opportunity Zones.
"The COVID-19 pandemic made it very clear that America cannot continue to rely on foreign entities like China for lifesaving medications," said Carter. "This legislation is designed to significantly reduce the advantage that foreign countries provide and encourage companies to maintain, expand or relocate their production activities back to the United States and its territories through a tax credit that will serve the most disadvantaged communities in our nation. We simply can no longer be dependent on our enemies for anything, especially medications. America must secure pharmaceutical independence."
“As we rebound from the pandemic, it is crucial that we act on the lessons learned through a year of supply chain shortages that left Americans vulnerable,” said Scott. “We cannot continue to rely on adversarial countries like China for lifesaving drugs and crucial medical supplies. This legislation illustrates the transformative power of Opportunity Zones, which have not only spurred billions of dollars of investment into our nation’s poorest communities but will also be a catalyst for the resurgence of American manufacturing.”
“I want America to be competitive on the world stage in as many ways as possible. The U.S. currently obtains 72% of Active Pharmaceutical Ingredients (API) from other countries, including 13% from China,” said Rice. “I’m proud to introduce the bipartisan MADE in America Act to incentivize drug manufacturing right here in the U.S. instead of shipping abroad our manufacturing needs and the jobs that come with them. This tax credit will address vulnerabilities in the U.S. supply chain while making our public health and national security stronger and more resilient.”
“The COVID-19 pandemic made it clear that our nation must lead and prioritize domestic manufacturing of drugs, API, PPE, and diagnostics,” said Soto. “The MADE in America Act will uplift manufacturers and provide the resources to make the process beneficial for them as well. It is encouraging to see members from both sides of the aisle come together with a common goal to make America stronger.”
“America’s scientific community is second to none. There’s no reason we shouldn’t also lead the world in making lifesaving medicines,” said Cartwright. “The pandemic revealed a concerning reliance on other nations, especially China, for critical components of medications that Americans rely on every day. As we work to revitalize our nation’s manufacturing base, this legislation will bring medicine production back to our shores.”
The MADE in America Act would address vulnerabilities in the U.S. supply chain in two distinct ways.
First, for America's national security, the legislation incentivizes the domestic manufacturing of drugs, API, PPE, and diagnostics in order to make the U.S. supply chain less dependent on foreign countries like China. This is achieved through a new tax credit that would only apply to manufacturers operating in certain Opportunity Zones across the United States. This will work to bring manufacturing back to the United States through incentives aimed at leveling the playing field, rather than through punitive and ultimately counter-productive mandates.
Additionally, the legislation includes measures aimed at mitigating drug shortages including improving FDA reporting of facility inspections, working more closely with overseas regulators and streamlining FDA standardization processes for overseeing pharmaceutical manufacturing and the supply chain.