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Kelly, Ways & Means Republicans Reintroduce Legislation Supporting Treatments and Cures for Healthier Future

April 19, 2022

WASHINGTON, D.C. -- In an effort to secure medical supply chains and invest in the cures and treatment of the future, Rep. Mike Kelly (R-PA), Leader of the Subcommittee on Select Revenue Measures, is joining Ways and Means Republicans Rep. Vern Buchanan (R-FL), Leader of the Subcommittee on Health and Rep. Brad Wenstrup (R-OH) to reintroduce major legislation that ensures a healthier future for all Americans.

"This package of legislation puts patients first," Kelly said. "These bills allow for investments in research and development to ultimately find treatments and cures that otherwise may not be discovered. Addressing supply chain needs now will help produce better cures and outcomes for all Americans in the future."


The American Innovation Act (Rep. Buchanan, cosponsored by Reps. Wenstrup and Kelly) aims to remove some of the initial barriers to creating a business, putting money back in the pockets of our country’s best job creators and setting start-ups on a path toward success.

  • Makes it easier for America’s innovators to start new drug companies that can research and develop new cures and treatments by providing special tax treatment for start-up costs and by preserving valuable tax attributes like R&D credits.
  • Passed the House in 2018 with broad bipartisan support.

The Start-ups for Cures Act (Rep. Buchanan, cosponsored by Rep. Kelly) allows small companies to put more of their capital toward working to prepare for the health care challenges of tomorrow.

  • Removes the obstacles that prevent innovators from starting new companies and beginning work to cure diseases.
  • Creates an R&D incentive for small biotech companies who are engaged in infectious disease drug development.

The More Cures Act (Rep. Buchanan, cosponsored by Rep. Kelly) creates a 14 percent bonus R&D tax credit for companies engaged in drug development research, particularly on new life-saving drugs and materials.

  • Creates bonus R&D incentives for companies engaged in infectious disease research.

The Infectious Disease Therapies Research and Innovation Act (Rep. Kelly, cosponsored by Reps. Buchanan and Wenstrup) encourages earlier investment and stronger research in critical therapies and vaccines.

  • The bill helps smaller firms raise private funds from more investors at an earlier stage.
  • Amends the tax code to help smaller firms attract more investment earlier on in the R&D process.

The American-Made Medicine Act (Rep. Wenstrup, cosponsored by Reps. Buchanan and Kelly) continues the resurgence in manufacturing started by the Tax Cuts and Jobs Act and focuses on enhancing Americans’ medical security with three tax credits.

  • Domestic medical and drug manufacturing tax credit – lowers tax rate on the income from domestic manufacturing and sales of pharmaceutical ingredients to encourage domestic production of these important products.
  • Advanced medical manufacturing equipment credit – creates a 30 percent investment tax credit for investments in equipment and machinery used to manufacture drugs and devices here in the U.S., regaining competitiveness with China and other foreign countries.
  • Medical manufacturing EPA compliance credit – creates a 30 percent investment tax credit for equipment and property that is used to meet emissions standards under the Clean Air Act or Clean Water Act.

What They’re Saying: Stakeholders Praise Medical Innovation Legislation from Ways & Means Republicans
 
Ways & Means Republicans have unveiled legislation to secure medical supplies and support innovation for a healthier future. Stakeholders are praising the effort as a path forward to improve American health care.

The Securing America’s Medicines and Supply (SAMS) Coalition:

“Our country needs a robust domestic infrastructure for life-saving therapies and supplies – from complex biologics, biosimilars, and generics to critical personal protective equipment (PPE) and devices. We support tax law that promotes increased manufacturing operations within the United States. The American Made Medicine Act recognizes the hard-work of U.S. manufacturers. ”

National Venture Capital Association, TechNet and the Center for American Entrepreneurship (CAE) in a joint statement:

“By making long-term investment in innovation more attractive, this package of proposals will pay enormous dividends for our economy and improve America’s long-term competitiveness. We thank Representatives Brady, Buchanan, Kelly, and Wenstrup for their leadership and look forward to continuing to work with policymakers to pass these solutions into law.”

BIO:

“A Ways & Means package led by Health Subcommittee Ranking Member Vern Buchanan, Rep. Brad Wenstrup, DPM, and Rep. Mike Kelly is a critical building block for future biotech innovation. By providing much-needed incentives for research, development, novel manufacturing, and more, it will allow biotech companies -- especially small startups – to do what they do best: solve the world’s most complex scientific challenges.

Issues:Health Care