Amends the Internal Revenue Code to allow a tax credit for 50% of the non-clinical research expenses for certain infectious diseases or conditions for which there is no significant market in developed nations and which disproportionately affect poor and marginalized populations. Requires any taxpayer who claims this tax credit to donate to a charitable organization or foreign government for public purposes the rights to any license for treatment of such diseases.
[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3156 Introduced in House (IH)]
111th CONGRESS
1st Session
H. R. 3156
To amend the Internal Revenue Code of 1986 to provide a credit against
tax for expenses paid or incurred in non-clinical research for
neglected diseases.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
July 9, 2009
Mr. Payne (for himself, Mr. Lewis of Georgia, Mr. Brady of Texas, and
Mr. Meek of Florida) 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 provide a credit against
tax for expenses paid or incurred in non-clinical research for
neglected diseases.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. CREDIT FOR NON-CLINICAL TESTING EXPENSES FOR NEGLECTED
DISEASE TREATMENTS.
(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 adding at the end the following:
``SEC. 45R. NON-CLINICAL TESTING EXPENSES FOR NEGLECTED DISEASE
TREATMENTS.
``(a) In General.--For purposes of section 38, the credit
determined under this section for the taxable year is an amount equal
to 50 percent of the qualified non-clinical research expenses for the
taxable year.
``(b) Qualified Non-clinical Research Expenses.--
``(1) In general.--For purposes of this section, the term
`qualified non-clinical research expenses' means the amounts
which are paid or incurred by the taxpayer during the taxable
year which would be described in subsection (b) of section 41
if such subsection were applied with the modifications set
forth in paragraph (2).
``(2) Modifications.--For purposes of paragraph (1),
subsection (b) of section 41 shall be applied by substituting
`non-clinical research' for `qualified research' each place it
appears in paragraphs (2) and (3) of such subsection.
``(3) Donation of rights to treatment required.--No credit
shall be allowed under this section with respect to qualified
non-clinical research expenses for a taxable year unless--
``(A) during such taxable year, or in a previous
taxable year, the taxpayer has made a charitable
contribution of a license for the treatment with
respect to which such qualified non-clinical research
expenses were paid or incurred and either--
``(i) the charitable contribution has the
same meaning as defined in section 170(c) and
such charitable contribution is made to a
charitable organization where the charitable
organization licensee researches, develops, or
administers treatments for neglected conditions
or diseases, or
``(ii) the charitable contribution is made
to a foreign government or any subdivision or
organization owned by the foregoing, but only
if the contribution is made for exclusively
public purposes,
``(B) the only commercial rights retained by the
taxpayer with respect to such treatment are for an
indication which is not a neglected condition or
disease, and
``(C) no deduction has been allowed under any
provision of this title with respect to such
contribution.
``(c) Definition and Special Rules.--For purposes of this section--
``(1) Non-clinical research.--The term `non-clinical
research' means any research relating to the development of a
treatment for a neglected disease or condition to the extent
such research is not human clinical testing with respect to
such treatment.
``(2) Neglected disease or condition.--The term `neglected
disease or condition' means any of the following:
``(A) African trypanosomiasis.
``(B) Dengue fever.
``(C) Leishmaniasis.
``(D) Malaria.
``(E) Schistosomiasis.
``(F) Tuberculosis.
``(G) Chagas disease.
``(H) Leprosy.
``(I) Lymphatic filariasis.
``(J) Onchocerciasis.
``(K) Lassa Fever.
``(L) Soil Transmitted Helminthiasis.
``(M) Trachoma.
``(N) Yaws.
``(O) Dracunculiasis.
``(P) Cholera.
``(Q) Buruli Ulcer.
``(R) Any other infectious disease for which there
is no significant market in developed nations and
disproportionately affects poor and marginalized
populations as determined and designated by regulation
by the Secretary of the Treasury in consultation with
the Secretary of Health and Human Services.
``(3) Certain rules made applicable.--Rules similar to the
rules of paragraphs (1) and (2) of section 41(f), paragraph (4)
of section 41(d), and subsections (b)(1)(C) and (c) of section
45C shall apply for purposes of this section.
``(4) Treatment as trade or business expense.--For purposes
of this section and section 174 whether a qualified non-
clinical research expense (determined after the application of
this paragraph) is paid or incurred in connection with the
taxpayer's trade or business shall be determined without regard
to any contribution of licensing rights described in subsection
(b)(3).
``(5) Expenses for which credits are allowable.--For
purposes of this section, the limitations under section 280C
are not applicable for purposes of determining whether an
expense is deductible or chargeable to a capital account.''.
(b) Credit To Be Part of General Business Credit.--Subsection (b)
of section 38 of such Code (relating to current year business credit)
is amended by striking ``plus'' at the end of paragraph (34), by
striking the period at the end of paragraph (35) and inserting ``,
plus'', and by adding at the end the following new paragraph:
``(36) the neglected disease credit determined under
section 45R.''.
(c) Clerical Amendment.--The table of sections for subpart D of
part IV of subchapter A of chapter 1 of the such Code is amended by
adding at the end the following new item:
``Sec. 45R. Non-clinical testing expenses for neglected disease
treatments.''.
(d) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2009.
<all>
Introduced in House
Introduced in House
Referred to the House Committee on Ways and Means.
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