1. Short title This Act may be cited as the Medical Manufacturing, Economic Development, and Sustainability Act of 2023 or the MMEDS Act of 2023 . 2. Economically distressed zones (a) In general Chapter 1 of the Internal Revenue Code of 1986 is amended by adding at the end the following new subchapter: AA Medical Product Manufacturing in Economically Distressed Zones Subchapter AA—Medical Product Manufacturing in Economically Distressed Zones Sec. 1400AA–1. Medical product manufacturing in economically distressed zone credit. Sec. 1400AA–2. Credit for economically distressed zone products and services acquired by domestic medical product manufacturers. Sec. 1400AA–3. Special rules to secure the national supply chain. Sec. 1400AA–4. Designation of economically distressed zones. 1400AA–1. Medical product manufacturing in economically distressed zone credit (a) Allowance of credit There shall be allowed as a credit against the tax imposed by subtitle A for the taxable year an amount equal to 40 percent of the sum of— (1) the aggregate amount of the taxpayer’s medical product manufacturing economically distressed zone wages for such taxable year, (2) the allocable employee fringe benefit expenses of the taxpayer for such taxable year, and (3) the depreciation and amortization allowances of the taxpayer for the taxable year with respect to qualified medical product manufacturing facility property. (b) Denial of double benefit Any wages or other expenses taken into account in determining the credit under this section may not be taken into account in determining the credit under sections 41, and any other provision determined by the Secretary to be substantially similar. (c) Definitions and special rules For purposes of this section— (1) Economically distressed zone wages (A) In general The term economically distressed zone wages means amounts paid or incurred for wages during the taxable year which are— (i) in connection with the active conduct of a trade or business of the taxpayer, and (ii) paid or incurred for an