ONSHORE Manufacturing Act

The ONSHORE Manufacturing Act creates three new tax credits to financially encourage the domestic production of essential medical supplies and equipment. The first credit provides a percentage of a company's taxable income based on wages paid to workers manufacturing specific drugs, devices, and ingredients listed as critical for national security or defense. The second and third credits offer tax breaks for businesses that purchase and install advanced machinery or environmental compliance equipment used to produce these same medical products within the United States. These incentives are designed to support companies that manufacture specified medical goods in whole or significant part domestically, with the benefits applying to taxable years beginning after December 31, 2026. Additionally, the bill requires several federal agencies to submit annual reports to Congress starting in 2027 to track how these credits affect supply chain resiliency and adherence to domestic procurement laws.