Bill > HR1396

This bill, known as the PILLS Act (Producing Incentives for Long-term production of Lifesaving Supply of medicine Act), introduces two significant tax credits aimed at boosting domestic production of generic drugs and biosimilars in the United States. The first credit, the Generic Drugs and Biosimilars Production Credit, offers taxpayers a 30% credit (which can increase to 35% for final drug production) on the value added to eligible components like generic drugs, biosimilars, and related materials produced and sold in the U.S. Manufacturers can earn an additional 20% bonus credit for using domestic content. The credit will phase out by the end of 2033. The second credit, the Generic Drugs and Biosimilars Investment Credit, provides a 25% tax credit for investments in qualified facilities in the U.S. that primarily produce eligible drug components, with the credit applying to investments made before the end of 2028. Both credits include provisions to prevent foreign entities of concern from claiming them and offer flexibility for different types of taxpayers to transfer or elect payment of the credits. The bill aims to incentivize domestic pharmaceutical manufacturing, reduce reliance on foreign drug production, and strengthen the U.S. medical supply chain.

Budget and Finance

https://www.congress.gov/bill/119th-congress/house-bill/1396/all-info