Supply Chain Security and Growth Act of 2025
Official title: To amend the Internal Revenue Code of 1986 to establish the critical supply chains reshoring investment tax credit.
Have a question about what this bill does? Ask in plain English; the answer is drawn from the bill's actual text and official record, and it'll tell you when something isn't in the text rather than guess.
Referred to the House Committee on Ways and Means.
Supply Chain Security and Growth Act of 2025
This bill establishes a tax credit for qualified investments made in certain facilities that are located in a U.S. possession and manufacture drugs, pharmaceuticals, semiconductors, or certain other items, subject to limitations. The bill also increases the deemed-paid foreign tax credit for taxes paid to a U.S. possession.
Specifically, under the bill, a taxpayer (other than a prohibited foreign entity) is allowed a tax credit for 40% of an investment in certain property that is
- placed into service during the tax year;
- integral to the operation of a critical supply chain facility; and
- constructed, reconstructed, or erected by the taxpayer, or property acquired for original used by the taxpayer.
The bill defines critical supply chain facility as a facility that (1) manufactures active pharmaceutical ingredients, drugs, biologic products, medical countermeasures, medical diagnostic devices, semiconductors, semiconductor manufacturing equipment, aerospace equipment, or artificial nanomaterials; and (2) is located in Puerto Rico, Guam, American Samoa, the Northern Mariana Islands, or the Virgin Islands.
Under the bill, the tax credit is transferable and may be claimed as a direct cash payment (i.e., elective payment). (Limitations apply.)
Finally, the bill increases to 100% (from 80%) the deemed-paid foreign tax credit for income taxes paid or accrued by a controlled foreign corporation (CFC) to a U.S. possession. (Under current law, a U.S. shareholder of a CFC is allowed a tax credit for income taxes paid by a CFC on certain income attributable to the U.S. shareholder.)
- Introduced in House Formatted Text PDF Formatted XML
Cite this page
U.S. Congress. (2026). H.R. 1328: Supply Chain Security and Growth Act of 2025. 119th Congress. Open America. https://openamerica.io/bill/119-HR-1328/
"H.R. 1328: Supply Chain Security and Growth Act of 2025." 119th Congress, 2026, Open America, https://openamerica.io/bill/119-HR-1328/.
H.R. 1328, 119th Cong. (2026), https://openamerica.io/bill/119-HR-1328/.
[H.R. 1328: Supply Chain Security and Growth Act of 2025](https://openamerica.io/bill/119-HR-1328/)