Alzheimer's Breakthrough Sunshine Act

Alzheimer's Breakthrough Sunshine Act

This bill amends the Internal Revenue Code to exclude from gross income for seven years amounts received from the sale of certain drugs for treating Alzheimer's disease and related dementias.

The exclusion applies to the sale of a drug approved or licensed as a disease-modifying treatment for Alzheimer's disease and that has been designated as a breakthrough therapy under the Federal Food, Drug, and Cosmetic Act. The drug must be sold through an arm's length transaction by a holder of the approved application for the drug.

[Congressional Bills 114th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5366 Introduced in House (IH)]

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114th CONGRESS
  2d Session
                                H. R. 5366

To amend the Internal Revenue Code of 1986 to exclude from gross income 
for seven years amounts earned from the sale of drugs that demonstrate 
        breakthrough therapies for treating Alzheimer's disease.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                              May 26, 2016

Mr. Murphy of Florida (for himself and Mr. Fitzpatrick) 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 exclude from gross income 
for seven years amounts earned from the sale of drugs that demonstrate 
        breakthrough therapies for treating Alzheimer's disease.

    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 ``Alzheimer's Breakthrough Sunshine 
Act''.

SEC. 2. EXCLUSION OF AMOUNTS RECEIVED IN SALES OF BREAKTHROUGH THERAPY 
              DRUGS TO TREAT ALZHEIMER'S DISEASE.

    (a) In General.--Part III of subchapter B of chapter 1 of the 
Internal Revenue Code of 1986 is amended by inserting before section 
140 the following new section:

``SEC. 139F. BREAKTHROUGH THERAPY DRUGS TO TREAT ALZHEIMER'S DISEASE.

    ``(a) In General.--Gross income does not include amounts received 
from the qualified sale of an Alzheimer's drug.
    ``(b) Limitation.--Subsection (a) shall not apply after the end of 
the sixth taxable year beginning after the taxable year within which 
the Alzheimer's drug is first approved by the Food and Drug 
Administration.
    ``(c) Definitions.--For purposes of this section--
            ``(1) Alzheimer's disease.--The term `Alzheimer's disease' 
        means Alzheimer's disease and related dementias.
            ``(2) Alzheimer's drug.--The term `Alzheimer's drug' means 
        a drug approved or licensed under section 505 of the Federal 
        Food, Drug, and Cosmetic Act or section 351 of the Public 
        Health Service Act as a disease-modifying treatment for 
        Alzheimer's disease and that has been designated as a 
        breakthrough therapy under section 506(a) of the Federal Food, 
        Drug, and Cosmetic Act.
            ``(3) Qualified sale.--The term `qualified sale' means the 
        sale (through an arm's length transaction) by the holder of the 
        approved application for an Alzheimer's drug.
    ``(d) Termination.--Subsection (a) shall not apply with respect to 
any Alzheimer's drug that is first approved by the Food and Drug 
Administration after the date which is 10 years after the date of the 
enactment of this section.''.
    (b) Conforming Amendment.--The table of sections for part III of 
subchapter B of chapter 1 of such Code is amended by inserting before 
the item relating to section 140 the following new item:

``Sec. 139F. Breakthrough therapy drugs to treat Alzheimer's 
                            disease.''.
    (c) Effective Date.--The amendments made by this Act shall apply to 
taxable years ending after the date of the enactment of this Act.
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