Bill · S. 4994· Senate(119-S-4994)
ONSHORE Manufacturing Act
- Introduced
- 7/15/2026
- Last activity
- 7/15/2026 — Read twice and referred to the Committee on Finance.
- Sponsored by
- Marsha Blackburn
- Cosponsors
- None
- Introduced
- In Committee
What this bill would do
This bill, known as the "ONSHORE Manufacturing Act," aims to amend the Internal Revenue Code of 1986 to encourage domestic production of critical medical supplies and drugs. It establishes a tax credit for domestic medical and drug manufacturing income. The legislation also provides credits for acquiring qualifying advanced medical manufacturing equipment. Additionally, it includes a credit for property used to meet EPA compliance standards in medical manufacturing. Finally, the bill requires several federal agencies to submit annual reports to Congress regarding the use and impact of these credits.
Yes· 3 of 11
Is this likely to create jobs?+5
The tax credits are designed to incentivize domestic production and manufacturing investments.
Would business owners be better off under this?+5
The bill offers significant tax credits to businesses engaged in domestic medical and drug manufacturing.
Does this make what the government does easier for the public to see?+5
The bill mandates annual reports from several federal agencies to Congress regarding the impact of these credits.
The opposite
No question was scored the opposite.
Who it would affect, and how
Potential Positive Impacts for People
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Support for Domestic Manufacturing Income: Taxpayers can receive a credit equal to 10.5 percent of their qualified medical and drug manufacturing income, which is limited by their taxable income and W-2 wages. (Section 2(a) and (b))
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Encouragement of Advanced Technology: Companies can receive a tax credit of up to 30 percent for investing in advanced medical manufacturing equipment that uses novel technology or helps address medicine shortages. (Section 3(b))
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Environmental Compliance Incentives: There is a tax credit of up to 30 percent for property used to help medical manufacturers meet emissions limits under the Clean Air Act or wastewater standards under the Clean Water Act. (Section 4(b))
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Increased Oversight and Transparency: Various federal agencies, including the IRS, VA, DoD, and FDA, are required to submit annual reports to Congress to track the utilization and impact of these credits on drug and device shortages and supply chain resiliency. (Section 5)
Potential Negative Impacts for People
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Credit Limitations on Wages: The domestic medical and drug manufacturing credit is capped at 50 percent of the taxpayer's W-2 wages. (Section 2(b)(1))
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Phasing Out of Equipment Credits: The credit for advanced medical manufacturing equipment decreases over time, dropping from 30 percent to 0 percent after December 31, 2032. (Section 3(b))
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Phasing Out of Compliance Credits: The credit for medical manufacturing EPA compliance property also decreases over time, dropping from 30 percent to 0 percent after December 31, 2032. (Section 4(b))
Groups and Interests Ranking
Every group the model scored this bill for, from -10 to +10. Hover a score for the reason it gave.
- Economy And Finance
- Increases Job Creation+5Improves Economic Growth+4Improves Small Business Support+4Reduces Small Business Taxes+4
- Demographic And Interest Groups
- Good For Business Owners+5Good For Veterans+3
- Governance And Ideology
- Improves Government Transparency+5
- Healthcare
- Improves Healthcare Access+5
- Environment Energy And Infrastructure
- Improves Environmental Protections+4
- Education And Technology
- Increases Scientific Research Funding+3
- National Security And Foreign Policy
- Improves Veterans Benefits+3
- 7/15/2026
- Read twice and referred to the Committee on Finance.
- Introduced in Senate