Supply Chain Security and Growth Act of 2025

Investment Incentives for Manufacturing: Qualifying taxpayers can receive a credit of 40 percent of their qualified investment in critical supply chain facilities (Section 2(a)).

Support for Specific Industries: The bill provides benefits for the manufacturing of various essential goods, including active pharmaceutical ingredients, drugs, biological products, medical countermeasures, medical diagnostic devices, semiconductors, aerospace equipment, and artificial nanomaterials (Section 2(b)(4)(A)).

Economic Support for Specific Locations: The credit is directed toward facilities located in Puerto Rico or a "specified possession" (Section 2(b)(4)(B)).

Benefits for Economically Distressed Areas: The bill includes an aggregation rule involving "qualified affiliated groups" where at least one member has made an investment in an "economically distressed zone," defined as a qualified opportunity zone with a poverty rate of at least 30 percent (Section 2(b)(5)).

Increased Tax Benefits for Possessions: The bill increases the percentage for taxes paid or accrued to a possession of the United States from 80 percent to 100 percent (Section 3(a)).

Restrictions on Foreign Entities: The tax credit is not available to "prohibited foreign entities," which includes any foreign entity of concern, any entity where a covered nation has the power to appoint officers, or entities where a covered nation or its citizens own 25 percent or more of the capital or profits (Section 2(b)(1)).

Exclusion of Certain Facilities from Other Credits: A facility that receives a credit under this act cannot be considered a "qualified facility" for the purpose of the electricity production credit (Section 2(b)).