Cameron’s Law

Bill Number: H.R. 1414
Origin Chamber: House
Congress: 119th Congress, Session 1
Policy Area: Taxation
Status: Introduced
Latest Action: 2025-02-18: Referred to the House Committee on Ways and Means.
Last Updated: 2026-06-04T08:07:52Z

AI-Generated Summary

Purpose

This legislation, titled "Cameron's Law," aims to restore a higher level of tax incentive for companies developing drugs to treat rare diseases (known as orphan drugs). It seeks to encourage research and development (R&D) for treatments that might otherwise be unprofitable due to small patient populations.

Key Provisions

Amends Section 45C(a) of the Internal Revenue Code of 1986, which provides a tax credit for qualified clinical testing expenses related to orphan drugs.
Increases the credit amount from 25% to 50% of eligible expenses.
Applies to taxable years (the periods for which taxes are calculated, typically calendar or fiscal years) beginning after the date the law is enacted.

Significant Changes to Existing Law

Prior to 2018, the orphan drug tax credit was 50%; it was reduced to 25% as part of broader tax reforms. This bill reverses that reduction, effectively restoring the pre-2018 incentive level.
No other changes are made to eligibility criteria for the credit, which covers costs of human clinical trials for drugs treating diseases affecting fewer than 200,000 people in the U.S.

Potential Impacts

On government agencies: The Internal Revenue Service (IRS) will administer a higher credit, potentially reducing federal tax revenue by encouraging more claims from eligible companies. This could increase administrative workload for verifying claims.
On citizens: Patients with rare diseases may benefit from faster or more drug development, improving access to treatments. However, it indirectly affects all taxpayers through lower overall government revenue.
On international relations: Minimal direct impact, though it could enhance U.S. competitiveness in global pharmaceutical R&D by making domestic orphan drug development more financially attractive compared to other countries.

Main Stakeholders Affected

Pharmaceutical and biotech companies: Primary beneficiaries, as the higher credit reduces the financial risk of investing in orphan drug R&D.
Patients and advocacy groups: Those with rare diseases (e.g., via organizations like the National Organization for Rare Disorders) stand to gain from increased drug innovation.
Taxpayers and government: Bear the cost through reduced tax collections, potentially affecting funding for public programs.

Notable Legal, Constitutional, or Political Implications

Legal: This is a straightforward tax code amendment under Congress's authority to regulate taxation (Article I, Section 8 of the U.S. Constitution). It aligns with existing frameworks for R&D tax incentives without creating new enforcement challenges.
Constitutional: No apparent issues, as it involves fiscal policy rather than rights or federalism concerns.
Political: Supports pro-innovation policies favored by bipartisan sponsors (Democrats and Republicans), potentially appealing to business interests in the biotech sector. It may spark debate on tax expenditures (credits that reduce revenue) versus public health benefits, especially amid budget constraints.

This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.

Sponsor

Rep. Gottheimer, Josh [D-NJ-5]

Cosponsors (19)

Rep. Bacon, Don [R-NE-2], Rep. Panetta, Jimmy [D-CA-19], Rep. Suozzi, Thomas R. [D-NY-3], Rep. Miller, Max L. [R-OH-7], Rep. Fitzpatrick, Brian K. [R-PA-1], Rep. Carey, Mike [R-OH-15], Rep. Johnson, Henry C. "Hank" [D-GA-4], Rep. Davis, Donald G. [D-NC-1], Rep. Lawler, Michael [R-NY-17], Rep. Cuellar, Henry [D-TX-28], Rep. Schneider, Bradley Scott [D-IL-10], Rep. Costa, Jim [D-CA-21], Rep. Kim, Young [R-CA-40], Rep. Kelly, Mike [R-PA-16], Rep. Carson, André [D-IN-7], Rep. Tenney, Claudia [R-NY-24], Rep. Kiggans, Jennifer A. [R-VA-2], Rep. Kean, Thomas H. [R-NJ-7], Rep. Hurd, Jeff [R-CO-3]

Recent Actions

2025-02-18: Referred to the House Committee on Ways and Means.
2025-02-18: Introduced in House
2025-02-18: Introduced in House

Bill Versions

Cameron’s Law — issued 2025-02-18 — PDF (2 pages)