Bill Details

HR.1414 - 119th Congress

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AI Summary This summary was generated by AI from the bill text. AI can get information wrong.

This bill would increase the tax credit for making drugs for rare diseases and conditions, often called orphan drugs. Right now, companies can claim a credit for some of their research costs, and this bill would raise that credit from 25% to 50%. The change would apply after the bill becomes law, so it would affect future tax years only.

  • Raises the orphan drug tax credit from 25% to 50%.
  • The credit is meant to help support research and development for medicines that treat rare diseases.
  • The new credit rate would apply to tax years starting after the law is enacted.

Official Summaries

Cameron's Law

This bill increases the orphan drug tax credit to 50% (from 25%) of qualified clinical testing expenses paid or incurred in the development of drugs to treat certain rare diseases or conditions.

As background, the Tax Cuts and Jobs Act reduced the orphan drug tax credit (for tax years after 2017) to 25% of qualified clinical testing expenses (e.g., wages, supplies, and certain contract expenses) paid or incurred in the development of drugs to treat certain rare diseases or conditions. For 2017 and prior tax years, the orphan tax credit was 50% of such expenses paid or incurred.

Current Full Text

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1414 Introduced in House (IH)]

<DOC>






119th CONGRESS
  1st Session
                                H. R. 1414

To amend the Internal Revenue Code of 1986 to restore the amount of the 
                        orphan drug tax credit.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                           February 18, 2025

 Mr. Gottheimer (for himself, Mr. Bacon, Mr. Panetta, and Mr. Suozzi) 
 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 restore the amount of the 
                        orphan drug tax credit.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as ``Cameron's Law''.

SEC. 2. RESTORATION OF AMOUNT OF ORPHAN DRUG TAX CREDIT.

    (a) In General.--Section 45C(a) of the Internal Revenue Code of 
1986 is amended by striking ``25 percent'' and inserting ``50 
percent''.
    (b) Effective Date.--The amendment made by this section shall apply 
to taxable years beginning after the date of the enactment of this Act.
                                 <all>