The "Medical Manufacturing, Economic Development, and Sustainability Act of 2025" (MMEDS Act of 2025) introduces new tax credits to revitalize domestic medical manufacturing, particularly in economically distressed areas. It establishes a 40 percent tax credit for medical manufacturers operating in designated zones, covering wages, employee fringe benefits, and depreciation of qualified facility property. This credit aims to incentivize job creation and investment in areas facing economic hardship and foster a robust domestic supply chain. The bill also provides a credit for eligible medical manufacturers that acquire products or services from these economically distressed zones, with a 30 percent credit for transactions with unrelated parties and 5 percent for related parties. To further strengthen the national supply chain and address public health needs, the MMEDS Act offers enhanced incentives for specific types of facilities. A 60 percent tax credit is available for qualified repatriated medical manufacturing facilities that move production back to the U.S. from foreign countries deemed a supply chain risk. Similarly, facilities producing qualified population health products —those addressing underlying non-communicable diseases that exacerbate pandemic impacts on vulnerable populations—also receive these higher credit rates and can elect 100 percent bonus depreciation. Economically distressed zones are defined as population census tracts meeting specific poverty rate criteria or designated by federal agencies based on state or local applications. These applications must include a strategic plan for economic development and community involvement, with designations lasting for 15 years and including U.S. territories and possessions. Beyond tax incentives, the MMEDS Act amends the Public Health Service Act to expand support for population health products and broadens the definition of qualified countermeasure . It defines vulnerable American populations to include children, pregnant women, older adults, and minority groups, emphasizing their protection. The Secretary of Health and Human Services is directed to prioritize advanced research and development of these products, ensure their timely distribution, and report to Congress on related needs and incentives. The tax amendments apply to taxable years beginning after December 31, 2024.