PILLS Act

The PILLS Act creates tax credits to encourage domestic production of generic drugs and biosimilars. It provides a production credit (up to 35% of value added for final drug production) for manufacturers producing eligible drugs in the U.S., with additional bonus credits for domestically sourced materials. The bill also establishes a 25% investment credit for qualified facilities building new production capacity, with both credits phasing out after 2029 and terminating for new construction after 2027. These provisions directly affect U.S. pharmaceutical manufacturers of generic drugs and biosimilars, aiming to increase domestic supply of these medications.