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119-hr-1396119th CongressWALLET

PILLS Act

Sponsored By: Representative Tenney, Claudia [R-NY-24]

Introduced

Summary

Creates new tax credits to boost U.S. production of generic drugs and biosimilars. The bill would add a production credit and a separate investment credit that reward domestic manufacturing, include domestic-content bonuses, and limit awards for certain foreign-related entities.

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  • Manufacturers and drug producers: Would establish Sec. 45BB, a production credit for each eligible component made and sold in the United States in a trade or business. The base credit is 30 percent of value added and rises to 35 percent for final drug substances or products, with an extra bonus tied to the share of U.S. content.
  • Investors and facility builders: Would create Sec. 48F, an investment credit equal to 25 percent of qualified investment in U.S. facilities that produce eligible components. The credit applies to property placed in service after December 31, 2026 and does not apply to constructions that begin after December 31, 2028.
  • Tax mechanics and safeguards: Credits would be optionally payable or transferable under rules like other refundable credits, but taxpayers defined as “foreign entities of concern” would be barred. The production credit excludes items from facilities with unresolved FDA warning letters after September 1, 2009.

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Bill Overview

Analyzed Economic Effects

2 provisions identified: 2 benefits, 0 costs, 0 mixed.

25% credit to build drug plants

If enacted, companies that build or upgrade U.S. facilities to make generic drugs, biosimilars, or their inputs could get a 25% investment tax credit. The credit would equal 25% of the basis of qualified property you place in service after December 31, 2026. It would not apply if construction begins after December 31, 2028. The facility must be in the United States or a U.S. territory and mainly produce eligible components; buildings used for production would qualify, but office areas would not. Foreign entities of concern would not qualify. You could elect direct pay or transfer the credit.

Tax credit for U.S.-made generics

If enacted, drug makers could claim a new credit for each eligible component made in the United States and sold to an unrelated buyer. The credit would be 30% of the value you added, or 35% if you did the final production step of a drug substance, drug product, or biologic. A domestic content bonus would add 0.20 times your domestic‑content percentage, with documentation and third‑party certification. The credit would phase down for sales after December 31, 2030 (2031: 75%, 2032: 50%, 2033: 25%; after 2033: 0%). Foreign entities of concern would not qualify, and sites with certain FDA warning letters after September 1, 2009 would be excluded. Components from a facility whose property basis is used for the new 48F investment credit after enactment would not qualify. You could elect direct pay or transfer the credit. This would apply to items produced after enactment.

Sponsors & CoSponsors

Sponsor

Tenney, Claudia [R-NY-24]

NY • R

Cosponsors

  • Rep. Malliotakis, Nicole [R-NY-11]

    NY • R

    Sponsored 9/26/2025

  • Rep. Steube, W. Gregory [R-FL-17]

    FL • R

    Sponsored 11/20/2025

Roll Call Votes

No roll call votes available for this bill.

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