An AI model extracted this from the bill’s official record and can make mistakes. Check the official text ↗ (opens in new tab)

Generic Drug

A medication created to be the same as an already marketed brand-name drug in dosage form, safety, strength, route of administration, quality, performance characteristics, and intended use. Generic drugs are typically much cheaper than their brand-name counterparts.

Biosimilar

A biological product that is highly similar to, and has no clinically meaningful differences from, an existing approved biological product (called a reference product). These are similar to generic drugs but for complex biological medicines.

Tax Credit

A direct reduction in the amount of tax a person or company owes. Unlike a tax deduction, which reduces taxable income, a tax credit directly reduces the tax bill dollar-for-dollar.

Eligible Component

Approved generic drugs, licensed biosimilars, or any materials, services, or parts used in their production, such as raw materials, packaging, or testing services.

Value Added

The increase in worth of a product during a stage of its production. For this bill, it's calculated as the sales price of the component minus the cost of components purchased from other companies.

Domestic Content Bonus Credit

An extra percentage added to the tax credit if a certain amount of the materials and components used to make the drug or its parts were themselves produced in the United States.