Bill would double orphan drug research tax credit

What does this do?

This bill would raise the tax credit that pharmaceutical companies can claim for researching rare-disease drugs. The credit would go from 25 cents to 50 cents for every dollar spent on qualifying research and testing. The change would take effect in the first tax year after the bill becomes law.

Who does it affect?

Pharmaceutical companies that develop drugs for rare diseases would be directly affected by this change.

Why does it matter?

A higher tax credit makes it less costly for companies to research rare-disease drugs, which tend to reach very small numbers of patients. Developing these drugs can otherwise be unprofitable because so few people need them.

Where does it stand?