Overview
Title
To amend the Internal Revenue Code of 1986 to restore the amount of the orphan drug tax credit.
ELI5 AI
H.R. 1414 is a plan to help make medicines for rare diseases by giving companies more money back from their taxes, so they can afford to create and sell these special medicines.
Summary AI
H.R. 1414, introduced in the 119th Congress by Mr. Gottheimer and other co-sponsors, aims to amend the Internal Revenue Code of 1986 to increase the orphan drug tax credit. The bill proposes changing the credit from 25 percent to 50 percent to encourage the development of drugs for rare diseases, known as orphan drugs. The change will be applicable to taxable years starting after the bill's enactment. This legislation is also called "Cameron's Law."
Published
Keywords AI
Sources
Bill Statistics
Size
Language
Complexity
AnalysisAI
General Summary of the Bill
The proposed legislation, titled "Cameron’s Law," aims to amend the Internal Revenue Code of 1986 by altering the orphan drug tax credit. The bill seeks to increase the current tax credit for orphan drugs from 25 percent to 50 percent of qualified expenses. This adjustment would apply to taxable years beginning after the enactment of this legislation.
Summary of Significant Issues
One major issue with the bill is the lack of detailed information about the rationale behind the proposed increase. The text does not elaborate on why doubling the tax credit is necessary or beneficial. This omission may lead to questions about the decision-making process and the necessity of the change.
There are also concerns regarding the financial implications. The increase in the tax credit represents a notable shift in tax policy, likely leading to higher government spending. However, the bill does not specify how this additional expenditure will be funded or what the long-term budgetary impact might be.
Another concern is the absence of details about which entities will primarily benefit from this increased tax credit. While it aims to support the development of orphan drugs, the change could disproportionately benefit pharmaceutical companies heavily invested in orphan drug research, raising concerns about favoritism.
Impact on the Public
Broadly, the bill could have a mixed impact on the public. On one hand, increasing the tax credit might encourage more research and development of orphan drugs, potentially leading to new treatments for rare diseases. This could benefit patients with rare conditions by improving access to necessary medications.
On the other hand, without clear guidelines and controls, there is a risk that the increased tax credit could lead to wasteful spending or result in higher drug prices, which may negatively affect drug affordability. The broader economic impact is also uncertain due to the lack of information on funding for this policy change.
Impact on Stakeholders
Pharmaceutical companies focused on orphan drug development could significantly benefit from this bill. By providing a larger tax credit, these companies may have increased financial resources to invest in research and development, potentially accelerating innovation in rare disease treatment.
Conversely, stakeholders concerned with government spending and budget management might view the bill negatively due to potential increases in expenditures without clear funding mechanisms. Policymakers and economic analysts may also critique the lack of specific justification for the policy change.
In conclusion, while "Cameron’s Law" has the potential to foster advancements in orphan drug development, the lack of transparency about its justification, funding, and economic impact raises important questions that need to be addressed to ensure equitable and effective policy implementation.
Issues
The increase from 25 percent to 50 percent in the orphan drug tax credit (Section 2) represents a significant change in tax policy, which may lead to a considerable increase in government spending. The implications of this increased tax credit should be carefully evaluated to ensure that it does not result in wasteful spending.
The section does not specify who will benefit most from this increase in the tax credit (Section 2). It could disproportionately benefit certain pharmaceutical companies that rely heavily on orphan drug development, raising concerns about favoritism towards specific industries.
There is no information about how the increased tax credit (Section 2) will be funded or what the long-term financial implications for the federal budget might be.
The text provides no explanation or justification for why the tax credit is being increased to 50 percent (Section 2), which could lead to questions about the rationale and necessity of the change.
The language in Section 2 is fairly straightforward, but there might still be concerns about its economic impact, particularly regarding how it affects drug pricing and access to orphan drugs.
The section provided does not contain detailed information on any spending or specific directives, making it difficult to audit for wasteful spending or favoritism (Section 1).
The section title 'Short title' is clear, but the rest of the Act's content is not provided in this text, limiting the ability to assess clarity and complexity of language for the entire Act (Section 1).
Sections
Sections are presented as they are annotated in the original legislative text. Any missing headers, numbers, or non-consecutive order is due to the original text.
1. Short title Read Opens in new tab
Summary AI
Summary:
This section states that the official name of the Act is "Cameron's Law."
2. Restoration of amount of orphan drug tax credit Read Opens in new tab
Summary AI
The section restores the orphan drug tax credit by increasing it from 25% to 50% of certain expenses. This change will apply to taxable years that start after the law is enacted.