(The Center Square) – An Ohio congressman wants to ensure U.S. companies get an advantage in producing medicine and medical devices for American soldiers.
Rep. Brad Wenstrup, R-Ohio and a former Army surgeon who served in Iraq, recently released a discussion draft of lower tax rates and tax credits for U.S. manufacturers.
Wenstrup’s proposed legislation takes aim at China, which he says produces a lot of personal protective equipment, and brand and generic medications consumed in the United States.
“Many of the name brand and generic medications millions of Americans rely on every day are being manufactured in China or are sourced with materials from China,” Wenstrup said. “If you had told me when I was a surgeon serving in Iraq that the personal protective equipment I relied on to protect me, and the medications needed to serve our troops, had depended on China, I would have asked, ‘How did we allow ourselves to get here as a country, especially our military?” Wenstrup said.
Wenstrup’s plan does four things for U.S. companies producing protective equipment and medications in the country, including:
• Lower the tax rate on the income from the domestic manufacturing and sales of essential drugs, biologics, medical devices, countermeasures and active pharmaceutical ingredients.
• Provide an investment tax credit for new investments in advanced manufacturing equipment or machinery used in the U.S. to manufacture critical health products.
• Provide a credit for equipment needed to comply with U.S. Environmental Protection Agency requirements, so U.S. manufacturers can meet environmental standards while still remaining cost competitive with China.
• These credits are only available for investments in producing essential medicines or devices, as defined by the U.S. Food and Drug Administration and the Department of Defense.
