Bill · H.R. 1396· House(119-HR-1396)
PILLS Act
- Introduced
- 2/14/2025
- Last activity
- 2/14/2025 — Referred to the House Committee on Ways and Means.
- Sponsored by
- Claudia Tenney
- Cosponsors
- - 2 - 0
- Introduced
- In Committee
What this bill would do
This bill, known as the "PILLS Act," aims to amend the Internal Revenue Code of 1986 to encourage the domestic production of generic drugs and biosimilars. It establishes a production credit for taxpayers producing eligible components within the United States and selling them to unrelated persons. Additionally, it creates an investment credit for taxpayers establishing qualified facilities for the production of these components. The production credit includes provisions for increased percentages for certain products and bonuses for domestic content. The bill also includes a phase-out schedule for the production credit starting after 2030.
Yes· 3 of 8
Would business owners be better off under this?+5
The bill provides significant tax credits for pharmaceutical manufacturers and facility investors.
Is this likely to create jobs?+4
The production and investment credits are intended to incentivize the establishment of domestic manufacturing facilities.
Is this likely to grow the economy?+3
By subsidizing domestic pharmaceutical manufacturing, the bill aims to stimulate industrial activity in the US.
The opposite
Does this make trade with other countries easier?-2
The bill focuses on domesticating supply chains by specifically excluding foreign entities of concern from receiving credits.
Who it would affect, and how
Potential Positive Impacts for People
-
Incentives for Domestic Production: The bill establishes a production credit for components produced in the United States (Section 2(a)(1)(A)), which encourages manufacturing within the country.
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Increased Support for Specific Products: The base credit percentage increases from 30 percent to 35 percent for the final production of drug substances, drug products, or biological products (Section 2(b)(3)(B)).
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Rewards for Using American Materials: A domestic content bonus credit is available for eligible components that contain materials or components produced in the United States (Section 2(b)(3)(C)).
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Encouragement of Infrastructure Development: An investment credit of 25 percent is provided for qualified investments in facilities used primarily to produce eligible components (Section 3(a)(1) and (2)).
Potential Negative Impacts for People
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Restrictions Based on Facility History: The credit is not allowed for components where any part of the production occurred at a facility that received an FDA warning letter on or after September 1, 2009, and has not received a close-out letter (Section 2(c)(1)(B)).
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Phasing Out of Production Incentives: The production credit amount is subject to a phase-out starting after December 31, 2030, eventually reaching 0 percent after 2033 (Section 2(b)(4)).
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Exclusion of Certain Entities: The credits are not available to any taxpayer that is a foreign entity of concern (Section 2(a)(1)(3) and Section 3(a)(1)).
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Time Limits on Investment Credits: The investment credit does not apply to property where construction begins after December 31, 2028 (Section 3(a)(4)).
Groups and Interests Ranking
Every group the model scored this bill for, from -10 to +10. Hover a score for the reason it gave.
- Demographic And Interest Groups
- Good For Business Owners+5Good For Low Income Households+2Good For Urban Residents+1
- Economy And Finance
- Increases Job Creation+4Improves Economic Growth+3
- Healthcare
- Improves Healthcare Access+3
- National Security And Foreign Policy
- Improves International Trade-2
- Environment Energy And Infrastructure
- Improves Rural Development+1
- Social Issues And Justice
- Improves Poverty Reduction+1
- 11/20/2025
- 1 Cosponsor added.
- 9/26/2025
- 1 Cosponsor added.
- 2/14/2025
- Referred to the House Committee on Ways and Means.
- Introduced in House
One bill Congress.gov lists as related to this one — companions in the other chamber, earlier versions, and bills this one absorbed or was folded into.
Nicole MalliotakisRepublican · New York
W. SteubeRepublican · Florida