section 351(i)(1) of the Public Health Service Act 
(42 U.S.C. 262(i)(1)). 
‘‘(5) LICENSED
BIOSIMILAR.—The term ‘li-
censed biosimilar’ means a biological product for 
which a biologics license has been issued under sec-
tion 351(k) of the Public Health Service Act (42 
U.S.C. 262(k)). 
‘‘(6) PRODUCED IN THE UNITED STATES.—The 
term ‘produced in the United States’ means that all 
the production of the material or component takes 
place in the United States, regardless of the origin 
of the subcomponents of such material or compo-
nent. 
‘‘(7) PRODUCTION.—The term ‘production’ 
means all steps in the manufacture, propagation, 
and preparation of an eligible component, including 
synthesis, mixing, granulating, milling, molding, 
lyophilizing, tableting, encapsulating, coating, steri-
lizing, testing, filling, labeling, packaging, and stor-
age prior to release by the manufacturer. 
‘‘(d) SPECIAL RULES.—Rules similar to the rules of 
paragraphs (1), (3), and (4) of section 45X(d) shall 
apply.’’. 
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(b) ELECTIVE PAYMENT.—Section 6417(a) of the In-
ternal Revenue Code of 1986 is amended by adding at the 
end the following new paragraph: 
‘‘(13) The generic drugs and biosimilars pro-
duction credit determined under section 45BB.’’. 
(c) CONFORMING AMENDMENTS.— 
(1) Section 38(b) of the Internal Revenue Code 
of 1986 is amended— 
(A) in paragraph (40), by striking ‘‘plus’’ 
at the end, and 
(B) in paragraph (41), by striking the pe-
riod at the end and inserting ‘‘, plus’’, and by 
adding at the end the following new paragraph: 
‘‘(42) the generic drugs and biosimilars produc-
tion credit determined under section 45BB(a).’’. 
(2) The table of sections for subpart D of part 
IV of subchapter A of chapter 1 of the Internal Rev-
enue Code of 1986 is amended by adding at the end 
the following new item: 
‘‘Sec. 45BB. Generic drugs and biosimilars production credit.’’. 
(d) EFFECTIVE DATE.—The amendments made by 
this section shall apply to generic drugs and biologics pro-
duced after the date of enactment of this Act. 
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SEC. 3. GENERIC DRUGS AND BIOSIMILARS INVESTMENT 
CREDIT. 
(a) IN GENERAL.—Subpart E of part IV of sub-
chapter A of chapter 1 of the Internal Revenue Code of 
1986 is amended by inserting after section 48E the fol-
lowing new section: 
‘‘SEC. 48F. GENERIC DRUGS AND BIOSIMILARS INVEST-
MENT CREDIT. 
‘‘(a) ESTABLISHMENT OF CREDIT.—For purposes of 
section 46, the generic drugs and biosimilars investment 
credit for any taxable year is an amount equal to 25 per-
cent of the qualified investment for such taxable year with 
respect to any qualified facility of an eligible taxpayer. 
‘‘(b) QUALIFIED INVESTMENT.— 
‘‘(1) IN GENERAL.—For purposes of subsection 
(a), the qualified investment for any taxable year is 
the basis of any qualified property placed in service 
by the taxpayer during such taxable year which is 
part of a qualified facility. 
‘‘(2) QUALIFIED PROPERTY.— 
‘‘(A) IN GENERAL.—For purposes of this 
subsection, the term ‘qualified property’ means 
property— 
‘‘(i) which is tangible property, 
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‘‘(ii) with respect to which deprecia-
tion (or amortization in lieu of deprecia-
tion) is allowable, 
‘‘(iii) which is— 
‘‘(I) constructed, reconstructed, 
or erected by the taxpayer, or 
‘‘(II) acquired by the taxpayer if 
the original use of such property com-
mences with the taxpayer, and 
‘‘(iv) which is integral to the operation 
of the qualified facility. 
‘‘(B) BUILDINGS AND STRUCTURAL COM-
PONENTS.— 
‘‘(i) IN GENERAL.—The term ‘quali-
fied property’ includes any building or its 
structural components which otherwise sat-
isfy the requirements under subparagraph 
(A). 
‘‘(ii) EXCEPTION.—Clause (i) shall 
not apply with respect to a building or por-
tion of a building used for offices, adminis-
trative services, or other functions unre-
lated to the production of eligible compo-
nents. 
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‘‘(3) QUALIFIED
FACILITY.—For purposes of 
this section, the term ‘qualified facility’ means a fa-
cility the primary purpose of which is the production 
of eligible components. 
‘‘(4) COORDINATION
WITH
REHABILITATION 
CREDIT.—The qualified investment with respect to 
any qualified facility for any taxable year shall not 
include that portion of the basis of any property 
which is attributable to qualified rehabilitation ex-
penditures (as defined in section 47(c)(2)). 
‘‘(5) CERTAIN PROGRESS EXPENDITURE RULES 
MADE APPLICABLE.—Rules similar to the rules of 
subsections (c)(4) and (d) of section 46 (as in effect 
on the day before the date of the enactment of the 
Revenue Reconciliation Act of 1990) shall apply for 
purposes of subsection (a). 
‘‘(c) DEFINITIONS.—For purposes of this section— 
‘‘(1) ELIGIBLE TAXPAYER.—The term ‘eligible 
taxpayer’ means any taxpayer which— 
‘‘(A) is not a foreign entity of concern (as 
defined in section 9901(8) of the William M. 
(Mac) Thornberry National Defense Authoriza-
tion Act for Fiscal Year 2021 (15 U.S.C. 
4651), and 
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‘‘(B) has not made an applicable trans-
action (as defined in section 50(a)) during the 
taxable year. 
‘‘(2) ELIGIBLE COMPONENT.—The term ‘eligi-
ble component’ has the meaning given such term in 
section 45BB(c)(1). 
‘‘(3) PRODUCTION.—The term ‘production’ has 
the meaning given such term in section 45BB(c)(6). 
‘‘(d) TERMINATION OF CREDIT.—The credit allowed 
under this section shall not apply to property the construc-
tion of which begins after December 31, 2027.’’. 
(b) ELECTIVE PAYMENT.—Section 6417(a) of the In-
ternal Revenue Code of 1986, as amended by section 2(b) 
of this Act, is amended by adding at the end the following 
new paragraph: 
‘‘(14) The generic drugs and biosimilars invest-
ment credit determined under section 48F.’’. 
(c) CONFORMING AMENDMENTS.— 
(1) Section 46 is amended— 
(A) in paragraph (6), by striking ‘‘and’’ at 
the end, 
(B) in paragraph (7), by striking the pe-
riod at the end and inserting ‘‘, and’’, and 
(C) by adding at the end the following: 
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‘‘(8) the generic drugs and biosimilars invest-
ment credit.’’. 
(2) Section 49(a)(1)(C) is amended— 
(A) by striking ‘‘and’’ at the end of clause 
(vi), 
(B) by striking the period at the end of 
clause (vii) and inserting a comma, and 
(C) by adding at the end the following new 
clause: 
‘‘(viii) the basis of any qualified prop-
erty which is part of a qualified facility 
under section 48F.’’. 
(3) The table of sections for subpart E of part 
IV of subchapter A of chapter 1 is amended by in-
serting after the item relating to section 48E the fol-
lowing new item: 
‘‘48F. Generic drugs and biosimilars investment credit.’’. 
(d) EFFECTIVE DATE.—The amendments made by 
this section shall apply to property placed in service after 
December 31, 2025. 
Æ 
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