[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[H.R. 354 Introduced in House (IH)]







108th CONGRESS
  1st Session
                                H. R. 354

To amend the Internal Revenue Code of 1986 to allow drug manufacturers 
a credit against income tax if they certify that the price of a drug in 
the United States market is not greater than its price in the Canadian 
                           or Mexican market.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            January 27, 2003

  Mr. Duncan 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 allow drug manufacturers 
a credit against income tax if they certify that the price of a drug in 
the United States market is not greater than its price in the Canadian 
                           or Mexican market.

    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 the ``North American Prescription Price 
Equity Act of 2003''.

SEC. 2. CREDIT TO DRUG MANUFACTURERS SELLING IN THE U.S. MARKET AT 
              PRICES NOT GREATER THAN PRICES IN CANADIAN OR MEXICAN 
              MARKET.

    (a) In General.--Subpart D of part IV of subchapter A of chapter 1 
of the Internal Revenue Code of 1986 (relating to business related 
credits) is amended by inserting after section 45F the following new 
section:

``SEC. 45G. CREDIT TO DRUG MANUFACTURERS SELLING IN THE U.S. MARKET AT 
              PRICES NOT GREATER THAN PRICES IN CANADIAN OR MEXICAN 
              MARKET.

    ``(a) In General.--For purposes of section 38, in the case of a 
taxpayer who manufactures any qualified prescription drug, the drug 
pricing credit determined under this section for the taxable year is an 
amount equal to 5 percent of the wholesale price of the drug with 
respect to sales during the?
    ``(b) Qualified Prescription Drug.--For purposes of this section, 
the term `qualified prescription drug' means any prescription drug if--
            ``(1) there are substantial sales of such drug in the 
        Canadian or Mexican markets, and
            ``(2) there is a certification by the manufacturer that the 
        wholesale price of the drug in the United States market is not 
        greater than the wholesale price of the drug in the Canadian 
        and Mexican markets.''
    (b) Credit Made Part of General Business Credit.--
            (1) In general.--Subsection (b) of section 38 of such Code 
        (relating to current year business credit) is amended by 
        striking ``plus'' at the end of paragraph (14), by striking the 
        period at the end of paragraph (15) and inserting ``, plus'', 
        and by adding at the end thereof the following new paragraph:
            ``(16) the drug pricing credit determined under section 
        45G(a).''.
            (2) Limitation on carryback.--Subsection (d) of section 39 
        of such Code is amended by adding at the end the following new 
        paragraph:
            ``(11) No carryback of drug pricing credit before effective 
        date.--No portion of the unused business credit for any taxable 
        year which is attributable to the credit determined under 
        section 45G may be carried back to any taxable year ending 
        before the date of the enactment of this paragraph.''.
            (3) Deduction for certain unused business credits.--
        Subsection (c) of section 196 of such Code is amended by 
        striking ``and'' at the end of paragraph (9), by striking the 
        period at the end of paragraph (10) and inserting ``, and'', 
        and by adding after paragraph (10) the following new paragraph:
            ``(11) the drug pricing credit determined under section 
        45G.''.
    (d) Clerical Amendment.--The table of sections for subpart D of 
part IV of subchapter A of chapter 1 of such Code is amended by 
inserting after the item relating to section 45F the following new 
item:

                              ``Sec. 45G. Credit to drug manufacturers 
                                        selling in the U.S. market at 
                                        prices not greater than prices 
                                        in Canadian or Mexican 
                                        market.''.
    (e) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after the date of the enactment of 
this Act.
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