S.1891

The PILLS Act establishes a tax credit for the production of generic drugs and biosimilars in the United States.

The PILLS Act amends the Internal Revenue Code to create a generic drugs and biosimilars production credit. This credit applies to eligible components produced by taxpayers in the United States and sold to unrelated parties. The credit amount is determined based on the value added to the component by the taxpayer. The credit phases out gradually from 2031 to 2033, ending completely after December 31, 2033. The Act also establishes a generic drugs and biosimilars investment credit for qualified investments in facilities used for production.