Provides for the special treatment of medical research incentive stock options.
[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[H.R. 744 Introduced in House (IH)]
107th CONGRESS
1st Session
H. R. 744
To amend the Internal Revenue Code of 1986 to encourage charitable
contributions to public charities for use in medical research.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
February 27, 2001
Ms. Dunn (for herself and Mr. Cardin) 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 encourage charitable
contributions to public charities for use in medical research.
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 ``Medical Research Investment Act of
2001''.
SEC. 2. INCREASE IN LIMITATION ON CHARITABLE DEDUCTION FOR
CONTRIBUTIONS FOR MEDICAL RESEARCH.
(a) In General.--Paragraph (1) of section 170(b) of the Internal
Revenue Code of 1986 (relating to percentage limitations) is amended by
adding at the end the following new subparagraph:
``(G) Special limitation with respect to certain
contributions for medical research.--
``(i) In general.--Any medical research
contribution shall be allowed to the extent
that the aggregate of such contributions does
not exceed the lesser of--
``(I) 80 percent of the taxpayer's
contribution base for any taxable year,
or
``(II) the excess of 80 percent of
the taxpayer's contribution base for
the taxable year over the amount of
charitable contributions allowable
under subparagraphs (A) and (B)
(determined without regard to
subparagraph (C)).
``(ii) Carryover.--If the aggregate amount
of contributions described in clause (i)
exceeds the limitation of such clause, such
excess shall be treated (in a manner consistent
with the rules of subsection (d)(1)) as a
medical research contribution in each of the 10
succeeding taxable years in order of time.
``(iii) Treatment of capital gain
property.--In the case of any medical research
contribution of capital gain property (as
defined in subparagraph (C)(iv)), subsection
(e)(1) shall apply to such contribution.
``(iv) Medical research contribution.--For
purposes of this subparagraph, the term
`medical research contribution' means a
charitable contribution--
``(I) to an organization described
in clauses (ii), (iii), (v), or (vi) of
subparagraph (A), and
``(II) which is designated for use
in conducting medical research.
``(v) Medical research.--For purposes of
this subparagraph, the term `medical research'
has the meaning given such term under the
regulations promulgated under subparagraph
(A)(ii), as in effect on the date of the
enactment of this subparagraph.''.
(b) Conforming Amendments.--
(1) Section 170(b)(1)(A) of the Internal Revenue Code of
1986 is amended in the matter preceding clause (i) by inserting
``(other than a medical research contribution)'' after
``contribution''.
(2) Section 170(b)(1)(B) of such Code is amended by
inserting ``or a medical research contribution'' after
``applies''.
(3) Section 170(b)(1)(C)(i) of such Code is amended by
striking ``subparagraph (D)'' and inserting ``subparagraph (D)
or (G)''.
(4) Section 170(b)(1)(D)(i) of such Code is amended--
(A) in the matter preceding subclause (I), by
inserting ``or a medical research contribution'' after
``applies'', and
(B) in the second sentence, by inserting ``(other
than medical research contributions)'' before the
period.
(c) Effective Date.--The amendments made by this section shall
apply--
(1) to contributions made in taxable years beginning after
December 31, 2001, and
(2) to contributions made on or before December 31, 2001,
but only to the extent that a deduction would be allowed under
section 170 of the Internal Revenue Code of 1986 for taxable
years beginning after December 31, 1999, had section
170(b)(1)(G) of such Code (as added by this section) applied to
such contributions when made.
SEC. 3. TREATMENT OF CERTAIN INCENTIVE STOCK OPTIONS.
(a) AMT Adjustments.--Section 56(b)(3) of the Internal Revenue Code
of 1986 (relating to treatment of incentive stock options) is amended--
(1) by striking ``Section 421'' and inserting the
following:
``(A) In general.--Except as provided in
subparagraph (B), section 421'', and
(2) by adding at the end the following new subparagraph:
``(B) Exception for certain medical
research stock.--
``(i) In general.--This paragraph
shall not apply in the case of a
medical research stock transfer of
stock acquired pursuant to the exercise
of an incentive stock option occurring
within the same taxable year as the
exercise.
``(ii) Medical research stock
transfer.--For purposes of clause (i),
the term `medical research stock
transfer' means a transfer--
``(I) of stock which is
traded on an established
securities market, and
``(II) which is a medical
research contribution (as
defined in section
170(b)(1)(G)(iv)).''.
(b) Nonrecognition of Certain Incentive Stock Options.--Section
422(c) of the Internal Revenue Code of 1986 (relating to special rules)
is amended by adding at the end the following new paragraph:
``(8) Medical research contributions.--For purposes of this
section and section 421, the transfer of a share of stock which
is a medical research stock transfer (as defined in section
56(b)(3)(B)) shall be treated as meeting the requirements of
subsection (a)(1).''.
(c) Effective Date.--The amendments made by this section shall
apply to transfers of stock made after the date of the enactment of
this Act.
<all>
Introduced in House
Introduced in House
Sponsor introductory remarks on measure. (CR E221-222)
Referred to the House Committee on Ways and Means.
Llama 3.2 · runs locally in your browser
Ask anything about this bill. The AI reads the full text to answer.
Enter to send · Shift+Enter for new line