MMEDS Act of 2025

This bill uses tax credits to bring more medical manufacturing jobs to struggling communities. Companies that make medical products in “economically distressed zones” could get a credit equal to 40% of local factory wages, worker benefits, and certain equipment costs for that site. The same costs can’t also be used for other, similar credits like research credits. Companies also get a credit when they buy parts or services from businesses in these zones—30% for purchases from unrelated companies, and 5% if the seller is related to them, covering needed services like packaging.

There’s extra help if a company brings production back to the U.S. from certain higher‑risk countries or makes important “population health” products. In those cases, the bill boosts the credit rates and lets firms choose to write off 100% of qualified equipment right away instead of taking a smaller credit over time. A “repatriated” facility must be moved into a distressed zone from a country flagged as a supply‑chain risk, and a “population health” facility must make products identified by the Health and Human Services Secretary for strategic support.

• Who is affected: U.S. medical product makers; suppliers and service providers in qualifying zones; residents of high‑poverty communities .
• What changes: 40% credit on zone wages, benefits, and equipment; 30%/5% credit on zone‑made parts and services; higher credits and optional 100% immediate write‑off for repatriated or priority health product facilities; no double‑counting of the same costs; limits to stop moving jobs just to get credits .
• When: Some zones start right away if they meet a 30% poverty test; others can be named within 10 years. All zones last 15 years once designated, and the rules cover all states, D.C., and U.S. territories and possessions.