I 
119TH CONGRESS 
1ST SESSION H. R. 1396 
To amend the Internal Revenue Code of 1986 to establish the generic drugs 
and biosimilars production credit, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
FEBRUARY 14, 2025 
Ms. TENNEY introduced the following bill; which was referred to the 
Committee on Ways and Means 
A BILL 
To amend the Internal Revenue Code of 1986 to establish 
the generic drugs and biosimilars production credit, and 
for other purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Producing Incentives 
for Long-term production of Lifesaving Supply of medi-
cine Act’’ or the ‘‘PILLS Act’’. 
SEC. 2. GENERIC DRUGS AND BIOSIMILARS PRODUCTION 
CREDIT. 
(a) IN GENERAL.—Subpart D of part IV of sub-
chapter A of chapter 1 of the Internal Revenue Code of 
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1986 is amended by adding at the end the following new 
section: 
‘‘SEC. 45BB. GENERIC DRUGS AND BIOSIMILARS PRODUC-
TION CREDIT. 
‘‘(a) IN GENERAL.— 
‘‘(1) ALLOWANCE OF CREDIT.—For purposes of 
section 38, the generic drugs and biosimilars produc-
tion credit for any taxable year is an amount equal 
to the credit amount determined under subsection 
(b) with respect to each eligible component which 
is— 
‘‘(A) produced by the taxpayer in the 
United States, and 
‘‘(B) sold by such taxpayer to an unrelated 
person (as determined by the Secretary) during 
the taxable year. 
‘‘(2) PRODUCTION
AND
SALE
MUST
BE
IN 
TRADE OR BUSINESS.—Rules similar to the rules of 
section 45X(a)(2) shall apply. 
‘‘(3) DISALLOWANCE OF CREDIT.—The credit 
under this subsection shall not be allowed to any 
taxpayer which, at any time during the taxable year, 
was a foreign entity of concern (as defined in section 
9901(8) of the William M. (Mac) Thornberry Na-
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tional Defense Authorization Act for Fiscal Year 
2021 (15 U.S.C. 4651)). 
‘‘(b) CREDIT AMOUNT.—For purposes of this sec-
tion— 
‘‘(1) IN GENERAL.—Subject to paragraph (4), 
the amount determined under this subsection with 
respect to any eligible component is an amount equal 
to the base credit percentage of the value added to 
such component by the taxpayer. 
‘‘(2) VALUE
ADDED.—The value added to a 
component by a taxpayer is an amount equal to— 
‘‘(A) the gross receipts received by the tax-
payer from the sale of the eligible component, 
minus 
‘‘(B) the cost of eligible components pur-
chased from an unrelated person in connection 
with the production of the component by the 
taxpayer. 
‘‘(3) BASE CREDIT PERCENTAGE.— 
‘‘(A) IN GENERAL.—Except as provided in 
subparagraphs (B) and (C), the base credit per-
centage is 30 percent. 
‘‘(B) INCREASED BASE CREDIT PERCENT-
AGE FOR CERTAIN ELIGIBLE COMPONENTS.— 
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