US SB1407

Federal health programs (HHS, VA, DoD) must purchase only drugs with at least 60% of active pharmaceutical ingredients manufactured outside China starting January 1, 2028, increasing to 100% by January 1, 2030

Eligible source countries must meet FDA health and safety standards; the Secretary of HHS may grant waivers for programs unable to comply, but no waivers permitted after January 1, 2031

Drug labels must specify the country of origin for each active ingredient, amending Section 502 of the Federal Food, Drug, and Cosmetic Act

Pharmaceutical and medical device manufacturing property placed in service in the U.S. between December 31, 2024 and January 1, 2031 qualifies for 100% bonus depreciation (immediate expensing)

Tax incentive applies to tangible property used in constructing or expanding domestic facilities for manufacturing drugs or medical devices, terminating December 31, 2030