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HR 1414

Congratulating Sarah Hininger of Hartley Fire & EMS on being named the 2025 EMS Provider of the Year by the Panhandle Firemen's and Fire Marshals' Association.

89th Legislature (2025) Introduced by John Smithee

Cameron's Law raises the orphan drug credit from 25% to 50% of qualifying clinical testing costs, expanding rare-disease drug development incentives; effective after enactment.

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#hininger #sarah(nm46o) #resolutions--congratulatory&honorary(i0705)
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Bill Summary · HR 1414

Summary — H.R. 1414 ("Cameron’s Law")

Note on document inconsistency
- The bill information provided includes a ceremonial resolution title congratulating Sarah Hininger, but the full text/version content attached is a substantive tax bill introduced Feb 18, 2025. This summary addresses the substantive bill text (the tax-law amendment titled “Cameron’s Law”) because that text contains the operative provisions.

Purpose

H.R. 1414 proposes to increase the federal tax incentive for development of drugs to treat rare diseases by restoring and doubling the orphan drug tax credit rate. The goal is to strengthen financial incentives for sponsors conducting clinical testing of drugs for rare diseases.

Key provisions

  • Amends section 45C(a) of the Internal Revenue Code of 1986.
  • Changes the orphan drug credit rate from 25 percent to 50 percent of qualifying clinical testing expenditures (i.e., replaces “25 percent” with “50 percent” in the statute).
  • Effective date: applies to taxable years beginning after the date of enactment.

Who would be affected

  • Primary: Sponsors (pharmaceutical and biotechnology companies) that incur qualified clinical testing expenses for drugs designated to treat rare diseases (orphan drugs). These entities would potentially receive larger tax credits against federal income tax liability.
  • Secondary: Investors in small biotechs, academic medical centers and contract research organizations involved in orphan drug trials could see indirect benefits (improved funding/incentives).
  • Government/Taxpayers: The Treasury would incur reduced revenue relative to current law due to larger credits.
  • Patients with rare diseases could be affected indirectly if increased incentives lead to more development activity and new therapies.

Procedural status & timeline (as provided)

  • Introduced in the House: February 18, 2025 (Rep. Josh Gottheimer, with multiple cosponsors).
  • Referred to House Committee on Ways and Means on introduction.
  • Additional recorded actions: placed on a Congratulatory & Memorial Resolutions calendar, laid before the House, adopted, reported enrolled (dates noted in provided actions: May–June 2025). (The mix of procedural entries appears inconsistent with a tax bill’s typical path and may reflect data conflation.)

Fiscal and policy considerations (brief)

  • Raising the credit from 25% to 50% would materially increase the value of the orphan drug credit, likely improving the economics of conducting costly clinical trials for rare diseases—particularly for smaller developers.
  • The change would reduce federal revenues; the magnitude depends on take-up and reported qualified expenditures.
  • Potential outcomes include increased R&D activity focused on rare diseases, faster development timelines for some therapies, and broader private investment. Distributional effects, drug pricing, and precise fiscal cost would require score by the Congressional Budget Office or Treasury estimates.

Technical/legal reference

  • Amends: Internal Revenue Code of 1986, section 45C(a).
  • Short title: “Cameron’s Law.”
  • Effective: taxable years beginning after enactment.

Compiled from official sources — confirm details with the bill’s official record.

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