Bill > S1891

This bill introduces two new tax credits to incentivize domestic production of generic drugs and biosimilars in the United States. The first credit, the Generic Drugs and Biosimilars Production Credit, allows companies a tax credit of 30-35% of the value added to eligible drug components produced and sold in the U.S., with an additional potential 7% bonus for using domestic content. Companies can receive a higher 35% credit for final production of drug substances, drug products, or biological products. The credit will phase out completely by the end of 2033. The second component is an Investment Credit that provides a 25% tax credit for investments in qualifying facilities used to produce generic drugs and biosimilars, applicable to property placed in service before the end of 2028. To be eligible for either credit, companies cannot be classified as a "foreign entity of concern," and they must provide documentation about their production and domestic content. The bill aims to strengthen domestic pharmaceutical manufacturing by providing financial incentives for companies to produce generic drugs and biosimilars within the United States, potentially reducing reliance on foreign drug production and improving supply chain resilience.

Budget and Finance

https://www.congress.gov/bill/119th-congress/senate-bill/1891/all-info