H.R.1396 - Producing Incentives for Long-term production of Lifesaving Supply of medicine Act; PILLS Act (119th Congress)
Summary
H.R.1396, the PILLS Act, introduces tax credits for the production of generic drugs and biosimilars. It aims to incentivize domestic manufacturing through production and investment credits. The bill amends the Internal Revenue Code of 1986 to establish these credits, promoting long-term production of essential medicines.
Expected Effects
The PILLS Act is likely to increase domestic production of generic drugs and biosimilars by making it more financially attractive for manufacturers. This could lead to lower drug prices and greater availability of essential medicines. The act also includes provisions to prevent foreign entities of concern from benefiting from the credits.
Potential Benefits
- Increased domestic production of generic drugs and biosimilars.
- Potential for lower drug prices for consumers.
- Enhanced access to essential medicines.
- Incentives for using domestic materials and components in production.
- Reduced reliance on foreign drug manufacturers.
Potential Disadvantages
- Potential for increased government spending through tax credits.
- Complexity in administering and verifying the credits.
- Possible unintended consequences, such as market distortions.
- The phase-out of the production credit after 2030 may reduce long-term effectiveness.
- The exclusion of facilities with FDA warning letters might disproportionately affect smaller manufacturers.
Constitutional Alignment
The bill aligns with the Constitution's mandate to "promote the general Welfare" (Preamble) by aiming to improve public health through increased access to affordable medicines. The establishment of tax credits falls under Congress's power to lay and collect taxes, duties, imposts, and excises (Article I, Section 8, Clause 1) to provide for the common defense and general welfare of the United States. The bill does not appear to infringe upon any specific constitutional rights or limitations.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).