Supply Chain Security and Growth Act of 2024

This bill creates a tax credit for investing in facilities that manufacture critical supplies in specified U.S. possessions or Puerto Rico, aiming to reshore supply chains. Sec. 2, Critical supply chains reshoring investment credit: The bill adds a new section 48F to the Internal Revenue Code, providing a tax credit equal to 40% of the qualified investment in a critical supply chain facility placed in service. Qualified investment is the basis of qualifying property integral to the facility, which must be tangible, depreciable property that is newly constructed or originally used by the taxpayer. A critical supply chain facility is one primarily manufacturing active pharmaceutical ingredients, drugs, biological products, medical countermeasures, medical diagnostic devices, semiconductors or equipment, aerospace equipment (NAICS 3364), or artificial nanomaterials, and located in a specified possession (as defined in section 937(c)) or Puerto Rico. Reconstructed property qualifies if improvements meet the substantial improvement test. The bill also coordinates this credit with the electricity production credit by excluding facilities receiving this credit from being qualified facilities under section 45. Conforming amendments add this credit to sections on elective payment (section 6417) and transfer of credits (section 6418), and list it in section 46. The amendments apply to property placed in service after December 31, 2024.