Bill · S. 1891· Senate(119-S-1891)
PILLS Act
- Introduced
- 5/22/2025
- Last activity
- 5/22/2025 — Read twice and referred to the Committee on Finance.
- Sponsored by
- Tom Cotton
- Cosponsors
- None
- Introduced
- In Committee
What this bill would do
This bill, known as the "PILLS Act," seeks to amend the Internal Revenue Code of 1986 to encourage the production of generic drugs and biosimilars within the United States. It establishes a production credit for taxpayers manufacturing eligible components and selling them to unrelated persons. Additionally, the bill creates an investment credit for taxpayers building qualified facilities for the production of these medicines. The production credit includes potential bonuses for domestic content and features a phase-out period starting after 2030. The investment credit applies to qualified property placed in service before the end of 2028.
Yes· 3 of 11
Would business owners be better off under this?+6
The investment and production credits provide significant incentives for pharmaceutical business owners.
Does this lower the price of prescription medicines?+6
Increasing domestic production of generics and biosimilars aims to lower the costs of essential medicines.
Would households on low incomes be better off under this?+5
Reduced drug costs provide significant economic relief to low-income families.
The opposite
No question was scored the opposite.
Who it would affect, and how
Potential Positive Impacts for People
-
Increased Domestic Production Incentives: The bill provides a production credit for any eligible component produced in the United States and sold to an unrelated person (Section 2(a)(1)). This is designed to encourage the manufacturing of medicine domestically.
-
Higher Credits for Specific Medicines: 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)).
-
Support for Domestic Supply Chains: A domestic content bonus credit is available, which increases the base credit percentage by an amount based on the percentage of materials and components produced in the United States (Section 2(b)(3)(C)).
-
Investment in Manufacturing Facilities: A 25 percent investment credit is established for qualified investments in facilities used primarily for the production of eligible components (Section 3(a)).
Potential Negative Impacts for People
-
Exclusions for Certain Facilities: The production credit is not allowed for any component produced at a facility that has received an FDA warning letter on or after September 1, 2009, which has not yet received a close-out letter (Section 2(c)(1)(B)).
-
Restrictions on Foreign Entities: Taxpayers classified as a "foreign entity of concern" are disallowed from receiving the production credit (Section 2(a)(3)) or the investment credit (Section 3(a)(1)).
-
Limited Duration of Investment Credits: The investment credit does not apply to any property where construction begins after December 31, 2028 (Section 3(d)).
-
Reduction of Production Credits Over Time: The production credit is subject to a phase-out starting after 2030, which reduces the credit amount by specific percentages each year until it reaches zero after 2033 (Section 2(b)(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+6Good For Low Income Households+5Good For Retirees+5Good For Middle Class Households+4Good For Seniors+4
- Healthcare
- Reduces Prescription Drug Costs+6Improves Pandemic Preparedness+5Improves Healthcare Access+4
- Economy And Finance
- Increases Job Creation+5Improves Economic Growth+4Improves Consumer Protection+3
- 5/22/2025
- Read twice and referred to the Committee on Finance.
- Introduced in Senate
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.