“America’s overreliance on foreign-made medicines is a national security issue with the potential to impact nearly every household in our country. This bill will ensure that our supply chains for lifesaving drugs remains stable while promoting President Trump’s made in America agenda,” said Senator Cotton.

Full text of the bill may be found here.

The PILLS Act would establish the following:

• A production-based tax credit (PBTC) of 35% for final manufacturers of APIs and finished drug products and 30% for all other components.
• A proportional domestic content bonus tax credit of up to 20% for 100% domestic content in the drug's constituent materials.
• Optional election of an investment tax credit equal to 25% of the qualified investment to offset costs of creating new production capacity (in lieu of PBTC).
• Disallowance of tax credits to any entity which, at any time during the taxable year, was a foreign entity of concern.