ONSHORE Manufacturing Act

Sponsor: Marsha Blackburn (Republican-TN)July 15, 2026

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Introduced

In Committee

Passed One Chamber

Passed Both Chambers

Signed into Law

Read twice and referred to the Committee on Finance.

Offers tax credits to companies making medical supplies and drugs in the U.S.

This bill would give tax breaks to companies that make important medical supplies and drugs in the United States. It also offers credits for new, advanced equipment and for meeting environmental rules. The goal is to reduce reliance on foreign supply chains for healthcare.

What Would Change

Today, there are no specific tax credits for making critical medical supplies in the U.S. or for related equipment. This bill would create three new tax credits: a 10.5 percent credit for domestic manufacturing income, and investment credits of up to 30 percent for advanced equipment and environmental compliance equipment. These changes would start for tax years beginning after December 31, 2026, for manufacturing, and after the bill becomes law for equipment.

Key Provisions

Gives a 10.5 percent tax credit to companies that make essential medical supplies and drugs in the U.S. for tax years starting after December 31, 2026.
Provides a tax credit of up to 30 percent for companies buying new, advanced medical manufacturing equipment in the U.S. before January 1, 2031.
Offers a tax credit of up to 30 percent for companies buying equipment to meet environmental rules for medical manufacturing in the U.S. before January 1, 2031.
Requires the Internal Revenue Service to submit annual reports to Congress on how these new tax credits are used, starting in 2027.
Requires the Department of Veterans Affairs, Department of Defense, and Food and Drug Administration to submit annual reports to Congress on the credits' impact, starting in 2027.

View on Congress.gov

S 4994 · 119th Congress · July 15, 2026 · AI Summary by gemini-2.5-flash · 10/10

ONSHORE Manufacturing Act

What Would Change

Key Provisions

Lobbying Activity