,,ii  #aai? ,,congress  #a/ ,session    
,s4 #ahia  ,,9 ,,! ,,s5ate ,,( ,,!      
,,unit$ ,,/ates  ,may #bb1 #bjbe,mr4    
,cotton introduc$ ! foll[+ bill2 :i* 0  
read twice & ref]r$ to ! ,committee on  
,f9ance  ,a ,,bill  ,to am5d ! ,int]nal 
,rev5ue ,code ( #aihf to e/abli% ! g5]ic
 drugs & biosimil>s production cr$it1 & 
= o!r purposes4  #a4 ,%ort title ,?is   
,act may be cit$ z ! ,produc+ ,inc5tives
 = ,long-t]m production ( ,lifesav+     
,supply ( m$ic9e ,act or ! ,,pills ,act4
  #b4 ,g5]ic drugs & biosimil>s         
production cr$it  7a7 ,9 g5]al ,subp>t  
,d ( "p ,,iv ( sub*apt] ,a ( *apt] #a ( 
! ,int]nal ,rev5ue ,code ( #aihf is     
am5d$ by add+ at ! end ! foll[+ new     
section3  #de;,,bb4 ,g5]ic drugs &      
biosimil>s production cr$it  7a7 ,9     
g5]al  7#a7 ,all[ance ( cr$it ,=        
purposes ( section #ch1 ! g5]ic drugs & 
biosimil>s production cr$it = any       
taxable ye> is an am\nt equal to ! cr$it
 am\nt det]m9$ "u subsection 7b7 )      
respect to ea* eligible compon5t :i*    

is-- 7,a7 produc$ by ! taxpay] 9 !      
,unit$ ,/ates1 &  7,b7 sold by su*      
taxpay] to an unrelat$ p]son 7z det]m9$ 
by ! ,secret>y7 dur+ ! taxable ye>4     
7#b7 ,production & sale mu/ be 9 trade  
or bus9ess ,rules simil> to ! rules (   
section #de,x7a77#b7 %all apply4  7#c7  
,disall[ance ( cr$it ,! cr$it "u ?is    
subsection %all n be all[$ to any       
taxpay] :i*1 at any "t dur+ ! taxable   
ye>1 0 a =eign entity ( conc]n 7z def9$ 
9 section #iija7h7 ( ! ,william ,m4     
7,mac7 ,?ornb]ry ,national ,def5se      
,au?orization ,act = ,fiscal ,ye> #bjba 
7#ae ,u4,s4,c4 #dfea774  7b7 ,cr$it     
am\nt ,= purposes ( ?is section-- 7#a7  
,9 g5]al ,subject to p>agraph 7#d71 !   
am\nt det]m9$ "u ?is subsection )       
respect to any eligible compon5t is an  
am\nt equal to ! base cr$it p]c5tage ( !
 value add$ to su* compon5t by !        
taxpay]4  7#b7 ,value add$ ,! value add$
 to a compon5t by a taxpay] is an am\nt 
equal to-- 7,a7 ! gross receipts receiv$
 by ! taxpay] f ! sale ( ! eligible     

compon5t1 m9us  7,b7 ! co/ ( eligible   
compon5ts pur*as$ f an unrelat$ p]son 9 
connection ) ! production ( ! compon5t  
by ! taxpay]4  7#c7 ,base cr$it p]c5tage
  7,a7 ,9 g5]al ,except z provid$ 9     
subp>agraphs 7,b7 & 7,c71 ! base cr$it  
p]c5tage is #cj p]c5t4  7,b7 ,increas$  
base cr$it p]c5tage = c]ta9 eligible    
compon5ts ,! base cr$it p]c5tage is #ce 
p]c5t 9 ! case ( ! f9al production (--  
7i7 a drug sub/ance1  7ii7 a drug       
product1 or  7iii7 a biological product4
  7,c7 ,dome/ic cont5t bonus cr$it  7i7 
,9 g5]al ,9 ! case ( an eligible        
compon5t :i* conta9s dome/ic cont5t1 !  
base cr$it p]c5tage det]m9$ "u ?is      
p>agraph 7det]m9$ )\t reg>d to ?is      
subp>agraph7 %all be increas$ by an     
am\nt equal to-- 7,i7 ! dome/ic cont5t  
p]c5tage1 multipli$ by  7,,ii7 #j4bj4   
7ii7 ,dome/ic cont5t p]c5tage ,=        
purposes ( ?is subp>agraph1 ! t]m       
dome/ic cont5t p]c5tage means ! p]c5tage
 ( ! total co/ ( ! eligible compon5ts   
tak5 into acc\nt = purposes ( p>agraph  

7#b7 :i* is attributable to mat]ials &  
compon5ts t 7 produc$ 9 ! ,unit$ ,/ates4
  7iii7 ,docum5tation rules  7,i7       
,record keep+ ,no dome/ic cont5t bonus  
cr$it %all be det]m9$ "u ?is subp>agraph
 unless ! taxpay] provides docum5tation 
support+ ! dome/ic cont5t p]c5tage 79   
su* =m & mann] z ! ,secret>y %all       
prescribe74  7,,ii7 ,c]tification by    
unrelat$ p>ty ,9 ! case ( mat]ials or   
compon5ts provid$ to ! taxpay] by an    
unrelat$ p>ty1 ! ,secret>y %all accept  
c]tification 79 su* =m & mann] z !      
,secret>y %all prescribe7 by su*        
unrelat$ p>ty t ! mat]ials or compon5ts 
7 produc$ 9 ! ,unit$ ,/ates4  7#d7      
,phase out  7,a7 ,9 g5]al ,9 ! case (   
any eligible compon5t sold aft] ,decemb]
 #ca1 #bjcj1 ! am\nt det]m9$ "u ?is     
subsection ) respect to su* compon5t    
%all be equal to ! product (-- 7i7 !    
am\nt det]m9$ "u p>agraph 7#a7 ) respect
 to su* compon5t 7det]m9$ )\t reg>d to  
?is p>agraph & aft] ! application (     
p>agraphs 7#b7 & 7#c771 &  7ii7 ! phase 

out p]c5tage4  7,b7 ,phase out p]c5tage 
,= purposes ( subp>agraph 7,a71 ! phase 
out p]c5tage is-- 7i7 9 ! case ( an     
eligible compon5t sold dur+ cal5d> ye>  
#bjca1 #ge p]c5t1  7ii7 9 ! case ( an   
eligible compon5t sold dur+ cal5d> ye>  
#bjcb1 #ej p]c5t1  7iii7 9 ! case ( an  
eligible compon5t sold dur+ cal5d> ye>  
#bjcc1 #be p]c5t1 &  7iv7 9 ! case ( an 
eligible compon5t sold aft] ,decemb]    
#ca1 #bjcc1 #j p]c5t4  7c7 ,def9itions  
,= purposes ( ?is section-- 7#a7        
,eligible compon5t  7,a7 ,9 g5]al       
,except z provid$ 9 subp>agraphs 7,b7 & 
7,c71 ! t]m eligible compon5t means--   
7i7 an approv$ g5]ic drug1  7ii7 a      
lic5s$ biosimil>1 &  7iii7 any drug     
sub/ance1 int]m$iate raw mat]ial1 />t+  
mat]ial1 reag5t1 compon5t1 9-process    
mat]ial1 inactive +r$i5t1 conta9]       
closure sy/em1 packag+1 quality te/+1 or
 o!r mat]ial or s]vice us$1 or sold )   
int5tion = use1 9 ! production ( an     
approv$ g5]ic drug or a lic5s$          
biosimil>4  7,b7 ,exclusion ( c]ta9     

compon5ts ,! t]m eligible compon5t %all 
n include a compon5t any portion ( !    
production ( :i* occurr$ at a facility  
:i* is ! subject ( a w>n+ lett]-- 7i7   
:i* 0 issu$ by ! ,food & ,drug          
,adm9i/ration on or aft] ,septemb] #a1  
#bjji1 &  7ii7 ) respect to :i* ! ,food 
& ,drug ,adm9i/ration has n issu$ a     
close-out lett]4  7,c7 ,application )   
o!r cr$its ,! t]m eligible compon5t %all
 n include any prop]ty :i* is produc$ at
 a facility if ! basis ( any prop]ty :i*
 is "p ( su* facility is tak5 into      
acc\nt = purposes ( ! cr$it all[$ "u    
section #dh;,f aft] ! date ( ! enactm5t 
( ?is section4  7#b7 ,approv$ g5]ic drug
 ,! t]m approv$ g5]ic drug means-- 7,a7 
a drug = :i* an approval ( an           
application fil$ "u section #eje7;j7 ( !
 ,f$]al ,food1 ,drug1 & ,cosmetic ,act  
7#ba ,u4,s4,c4 #cee7;j77 is 9 effect1 or
  7,b7 an au?oriz$ g5]ic drug 7z def9$ 9
 section #cad4c ( title #ba1 ,code (    
,f$]al ,regulations 7or any successor   
regulation774  7#c7 ,lic5s$ biosimil>   

7,a7 ,9 g5]al ,! t]m lic5s$ biosimil>   
means a biological product = :i* a      
biologics lic5se has be5 issu$ "u       
section #cea7k7 ( ! ,public ,heal?      
,s]vice ,act 7#db ,u4,s4,c4 #bfb7k774   
7,b7 ,biological product ,! t]m         
biological product has ! mean+ giv5 su* 
t]m 9 section #cea7;i77#a7 ( ! ,public  
,heal? ,s]vice ,act 7#db ,u4,s4,c4      
#bfb7;i77#a774  7#d7 ,o!r t]ms ,! t]ms  
drug sub/ance & drug product h !        
respective mean+s giv5 su* t]ms 9       
section #cad4c ( title #ba1 ,code (     
,f$]al ,regulations 7or any successor   
regulation74  7#e7 ,produc$ 9 ! ,unit$  
,/ates ,! t]m produc$ 9 ! ,unit$ ,/ates 
means t all ! production ( ! mat]ial or 
compon5t takes place 9 ! ,unit$ ,/ates1 
reg>dless ( ! orig9 ( ! subcompon5ts (  
su* mat]ial or compon5t4  7#f7          
,production ,! t]m production means all 
/eps 9 ! manufacture1 propagation1 &    
prep>ation ( an eligible compon5t1      
includ+ syn!sis1 mix+1 granulat+1 mill+1
 mold+1 lyophiliz+1 tablet+1            

encapsulat+1 coat+1 /]iliz+1 te/+1      
fill+1 label+1 packag+1 & /orage prior  
to release by ! manufactur]4  7d7       
,special rules ,rules simil> to ! rules 
( p>agraphs 7#a71 7#c71 & 7#d7 ( section
 #de,x7d7 %all apply4  7e7 ,regulatory  
au?ority ,! ,secret>y %all prescribe su*
 regulations & o!r guidance z are       
appropriate or necess>y to c>ry out !   
purposes ( ?is section4  4  7b7         
,elective paym5t  7#a7 ,9 g5]al ,section
 #fdag7;b7 ( ! ,int]nal ,rev5ue ,code ( 
#aihf is am5d$ by add+ at ! end ! foll[+
 new p>agraph3  7#ac7 ,! g5]ic drugs &  
biosimil>s production cr$it det]m9$ "u  
section #de;,,bb4  4  7#b7 ,election )  
respect to o!r entities ,p>agraph 7#a7 (
 section #fdag7;d7 is am5d$-- 7,a7 by   
r$esignat+ subp>agraph 7,e7 z           
subp>agraph 7,f71  7,b7 by /rik+ or 7,d7
 ea* place x appe>s 9 subp>agraph 7,f71 
z s r$esignat$1 & ins]t+ 7,d71 or 7,e71 
&  7,c7 by ins]t+ aft] subp>agraph 7,d7 
! foll[+ new subp>agraph3  7,e7         
,election ) respect to g5]ic drugs &    

biosimil>s production cr$it  7i7 ,9     
g5]al ,if a taxpay] o!r ?an an entity   
describ$ 9 subp>agraph 7,a7 makes an    
election "u ?is subp>agraph ) respect to
 any taxable ye> 9 :i* su* taxpay] has1 
aft] ,decemb] #ca1 #bjbd1 produc$       
eligible compon5ts 7z def9$ 9 section   
#de;,,bb7c77#a771 su* taxpay] %all be   
treat$ z an applicable entity = purposes
 ( ?is section = su* taxable ye>1 b only
 ) respect to ! cr$it describ$ 9        
subsection 7b77#ac74  7ii7 ,o!r rules ,!
 rules ( clauses 7ii7 & 7iii7 (         
subp>agraph 7,d7 %all apply = purposes (
 ?is subp>agraph4  4  7c7 ,transf] (    
cr$its ,section #fdah7;f77#a7;,a7 ( !   
,int]nal ,rev5ue ,code ( #aihf is am5d$ 
by add+ at ! end ! foll[+ new clause3   
7xii7 ,! g5]ic drugs & biosimil>s       
production cr$it det]m9$ "u section     
#de;,,bb4  4  7d7 ,con=m+ am5dm5ts  7#a7
 ,section #ch7;b7 ( ! ,int]nal ,rev5ue  
,code ( #aihf is am5d$-- 7,a7 by /rik+  
plus at ! end ( p>agraph 7#dj71  7,b7 by
 /rik+ ! p]iod at ! end ( p>agraph 7#da7

 & ins]t+ 1 plus1 &  7,c7 by add+ at !  
end ! foll[+ new p>agraph3  7#db7 !     
g5]ic drugs & biosimil>s production     
cr$it det]m9$ "u section #de;,,bb7a74  4
  7#b7 ,! table ( sections = subp>t ,d (
 "p ,,iv ( sub*apt] ,a ( *apt] #a ( !   
,int]nal ,rev5ue ,code ( #aihf is am5d$ 
by add+ at ! end ! foll[+ new item3     
,sec4 #de;,,bb4 ,g5]ic drugs &          
biosimil>s production cr$it4  4  7e7    
,effective date ,! am5dm5ts made by ?is 
section %all apply to g5]ic drugs &     
biologics produc$ aft] ! date ( enactm5t
 ( ?is ,act4  #c4 ,g5]ic drugs &        
biosimil>s inve/m5t cr$it  7a7 ,9 g5]al 
,subp>t ,e ( "p ,,iv ( sub*apt] ,a (    
*apt] #a ( ! ,int]nal ,rev5ue ,code (   
#aihf is am5d$ by ins]t+ aft] section   
#dh;,e ! foll[+ new section3  #dh;,f4   
,g5]ic drugs & biosimil>s inve/m5t cr$it
  7a7 ,e/abli%m5t ( cr$it ,= purposes ( 
section #df1 ! g5]ic drugs & biosimil>s 
inve/m5t cr$it = any taxable ye> is an  
am\nt equal to #be p]c5t ( ! qualifi$   
inve/m5t = su* taxable ye> ) respect to 

any qualifi$ facility ( an eligible     
taxpay]4  7b7 ,qualifi$ inve/m5t ,=     
purposes ( ?is section-- 7#a7 ,9 g5]al  
,! qualifi$ inve/m5t = any taxable ye>  
is ! basis ( any qualifi$ prop]ty plac$ 
9 s]vice by ! taxpay] dur+ su* taxable  
ye> :i* is "p ( a qualifi$ facility4    
7#b7 ,qualifi$ prop]ty  7,a7 ,9 g5]al ,!
 t]m qualifi$ prop]ty means prop]ty--   
7i7 :i* is tangible prop]ty1  7ii7 )    
respect to :i* depreciation 7or         
amortization 9 lieu ( depreciation7 is  
all[able1  7iii7 :i* is-- 7,i7          
con/ruct$1 recon/ruct$1 or erect$ by !  
taxpay]1 or  7,,ii7 acquir$ by ! taxpay]
 if ! orig9al use ( su* prop]ty comm5ces
 ) ! taxpay]1 &  7iv7 :i* is us$ z an   
integral "p ( ! qualifi$ facility to    
produce eligible compon5ts4  7,b7       
,build+s & /ructural compon5ts  7i7 ,9  
g5]al ,! t]m qualifi$ prop]ty includes  
any build+ or its /ructural compon5ts   
:i* o!rwise satisfies ! requirem5ts (   
subp>agraph 7,a74  7ii7 ,exception      
,clause 7i7 %all n apply ) respect to a 

build+ or portion ( a build+ us$ =      
(fices1 adm9i/rative s]vices1 or o!r    
functions unrelat$ to ! production (    
eligible compon5ts4  7#c7 ,qualifi$     
facility ,! t]m qualifi$ facility means 
a facility-- 7,a7 :i* is own$ 79 :ole or
 9 "p7 by ! taxpay]1  7,b7 :i* is locat$
 9 ! ,unit$ ,/ates or any t]ritory ( !  
,unit$ ,/ates1 &  7,c7 ! prim>y purpose 
( :i* is ! production ( eligible        
compon5ts4  7#d7 ,coord9ation )         
rehabilitation cr$it ,! qualifi$        
inve/m5t ) respect to any qualifi$      
facility = any taxable ye> %all n       
include t portion ( ! basis ( any       
prop]ty :i* is attributable to qualifi$ 
rehabilitation exp5ditures 7z def9$ 9   
section #dg7;c77#b774  7#e7 ,c]ta9      
progress exp5diture rules made          
applicable ,rules simil> to ! rules (   
subsections 7c77#d7 & 7d7 ( section #df 
7z 9 effect on ! day be=e ! date ( !    
enactm5t ( ! ,rev5ue ,reconciliation    
,act ( #aiij7 %all apply4  7c7          
,def9itions ,= purposes ( ?is section-- 

7#a7 ,eligible taxpay] ,! t]m eligible  
taxpay] means any taxpay] :i* is n a    
=eign entity ( conc]n 7z def9$ 9 section
 #iija7h7 ( ! ,william ,m4 7,mac7       
,?ornb]ry ,national ,def5se             
,au?orization ,act = ,fiscal ,ye> #bjba 
7#ae ,u4,s4,c4 #dfea74  7#b7 ,eligible  
compon5t ,! t]m eligible compon5t has ! 
mean+ giv5 su* t]m 9 section            
#de;,,bb7c77#a74  7#c7 ,production ,!   
t]m production has ! mean+ giv5 su* t]m 
9 section #de;,,bb7c77#f74  7d7         
,t]m9ation ( cr$it ,! cr$it all[$ "u ?is
 section %all n apply to prop]ty !      
con/ruction ( :i* beg9s aft] ,decemb]   
#ca1 #bjbh4  7e7 ,regulatory au?ority ,!
 ,secret>y %all prescribe su*           
regulations & o!r guidance z are        
appropriate or necess>y to c>ry out !   
purposes ( ?is section4  4  7b7         
,elective paym5t  7#a7 ,9 g5]al ,section
 #fdag7;b7 ( ! ,int]nal ,rev5ue ,code ( 
#aihf1 z am5d$ by section #b7;b7 ( ?is  
,act1 is fur!r am5d$ by add+ at ! end ! 
foll[+ new p>agraph3  7#ad7 ,! g5]ic    

drugs & biosimil>s inve/m5t cr$it       
det]m9$ "u section #dh;,f4  4  7#b7     
,election ) respect to o!r entities     
,p>agraph 7#a7 ( section #fdag7;d7 ( su*
 ,code1 z am5d$ by ?is ,act1 is fur!r   
am5d$-- 7,a7 by r$esignat+ subp>agraph  
7,f7 z subp>agraph 7,g71  7,b7 by /rik+ 
or 7,e7 ea* place x appe>s 9 subp>agraph
 7,g71 z s r$esignat$1 & ins]t+ 7,e71 or
 7,f71 &  7,c7 by ins]t+ aft]           
subp>agraph 7,e7 ! foll[+ new           
subp>agraph3  7,f7 ,election ) respect  
to g5]ic drugs & biosimil>s inve/m5t    
cr$it ,if a taxpay] o!r ?an an entity   
describ$ 9 subp>agraph 7,a7 makes an    
election "u ?is subp>agraph ) respect to
 any taxable ye> 9 :i* su* taxpay] has  
plac$ 9 s]vice a qualifi$ facility 7z   
def9$ 9 section #dh;,f7b77#c771 su*     
taxpay] %all be treat$ z an applicable  
entity = purposes ( ?is section = su*   
taxable ye>1 b only ) respect to ! cr$it
 describ$ 9 subsection 7b77#ad74  4  7c7
 ,transf] ( cr$its ,section             
#fdah7;f77#a7;,a7 ( ! ,int]nal ,rev5ue  

,code ( #aihf1 z am5d$ by ?is ,act1 is  
fur!r am5d$ by add+ at ! end ! foll[+   
new clause3  7xiii7 ,! g5]ic drugs &    
biosimil>s inve/m5t cr$it det]m9$ "u    
section #dh;,f4  4  7d7 ,con=m+ am5dm5ts
  7#a7 ,section #df ( ! ,int]nal ,rev5ue
 ,code ( #aihf is am5d$-- 7,a7 by /rik+ 
& at ! end ( p>agraph 7#f71  7,b7 by    
/rik+ ! p]iod at ! end ( p>agraph 7#g7 &
 ins]t+ 1 &1 &  7,c7 by add+ at ! end ! 
foll[+ new p>agraph3  7#h7 ! g5]ic drugs
 & biosimil>s inve/m5t cr$it4  4  7#b7  
,section #di7;a77#a77;,c7 ( su* ,code is
 am5d$-- 7,a7 by /rik+ & at ! end (     
clause 7vii71  7,b7 by /rik+ ! p]iod at 
! end ( clause 7viii7 & ins]t+ 1 &1 &   
7,c7 by add+ at ! end ! foll[+ new      
clause3  7ix7 ! basis ( any qualifi$    
prop]ty :i* is "p ( a qualifi$ facility 
"u section #dh;,f4  4  7#c7 ,! table (  
sections = subp>t ,e ( "p ,,iv (        
sub*apt] ,a ( *apt] #a is am5d$ by      
ins]t+ aft] ! item relat+ to section    
#dh;,e ! foll[+ new item3  #dh;,f4      
,g5]ic drugs & biosimil>s inve/m5t      

cr$it4  4  7e7 ,effective date ,!       
am5dm5ts made by ?is section %all apply 
to prop]ty plac$ 9 s]vice aft] ,decemb] 
#ca1 #bjbf4