MMEDS Act of 2025

The MMEDS Act of 2025 creates tax credits to encourage medical manufacturing in economically distressed areas of the United States and its territories, and expands federal authority to support development of population health products for vulnerable populations during epidemics and pandemics.

Sec. 2, Economically distressed zones: This section adds a new subchapter to the Internal Revenue Code establishing a 40% tax credit for wages, fringe benefits, and depreciation of qualified medical manufacturing facilities in economically distressed zones. It also provides a 30% credit (5% for related persons) for buying products or services from such zones. Facilities moved from foreign countries that risk the supply chain, or that produce population health products, qualify for higher credit rates (60% for wages, 50% or 60% for purchases) and may elect to expense property instead of taking the depreciation credit. Economically distressed zones are census tracts with at least 30% poverty for five years, or tracts with at least 25% poverty and other distress designated by the Treasury and Commerce Secretaries upon state or local application. Designations last 15 years and can be made within 10 years of enactment. The amendments apply to tax years beginning after December 31, 2024.

Sec. 3, Authority to support development of population health products: This section amends the Public Health Service Act to define "population health product" as a widely available drug for non-communicable diseases that, combined with pandemic influenza or emerging infectious diseases, could harm vulnerable American populations (children, pregnant women, older adults, minorities, and other at-risk individuals). It expands the definition of "qualified countermeasure" to include products for such combined threats. It directs the Secretary of Health and Human Services to prioritize advanced research and development of population health products for vulnerable populations, collaborate with other agencies to ensure timely distribution of approved products, and report to Congress within 90 days on the disproportionate harm from past epidemics, the need for additional population health products, and whether to extend incentives similar to those for infectious disease products.