I 

109TH CONGRESS 

1ST SESSION H. R. 3444 

To amend the Internal Revenue Code of 1986 to provide credits against 

income tax for qualified stem cell research, the storage of qualified 

stem cells, and the donation of umbilical cord blood. 

IN THE HOUSE OF REPRESENTATIVES 

JULY 26, 2005 

Mr. PAUL 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 

credits against income tax for qualified stem cell research, the storage of qualified stem cells, and the donation of umbilical cord blood. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Cures Can Be Found 

5 Act of 2005’’. 

6 SEC. 2. QUALIFIED STEM CELL CREDITS. 

7 (a) PERSONAL CREDIT FOR QUALIFIED STEM CELL

8 RESEARCH, STORAGE, AND DONATION.—Subpart A of 
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1 part IV of subchapter A of chapter 1 of the Internal Rev2 enue Code of 1986 (relating to nonrefundable personal 

3 credits) is amended by inserting after section 25B the fol4 lowing new section: 

5 ‘‘SEC. 25C. QUALIFIED STEM CELL RESEARCH, STORAGE, 

6 AND DONATION CREDIT. 

7 ‘‘(a) ALLOWANCE OF CREDIT.—There shall be al8 lowed as a credit against the tax imposed by this chap9 ter— 

10 ‘‘(1) an amount equal to the qualified stem cell 

11 research and storage contribution paid by the tax12 payer during a taxable year, and 

13 ‘‘(2) $2,000 for each qualified umbilical cord 

14 blood donation made by the taxpayer during a tax15 able year. 

16 ‘‘(b) QUALIFIED STEM CELL RESEARCH AND STOR17 AGE CONTRIBUTION.—For purposes of this section— 

18 ‘‘(1) IN GENERAL.—The term ‘qualified stem 

19 cell research and storage contribution’ means the 

20 amounts donated by the taxpayer to an eligible facil21 ity for the purpose of promoting qualified stem cell 

22 research or the storage of qualified stem cells. 

23 ‘‘(2) QUALIFIED STEM CELL.—For purposes of 

24 this section, the term ‘qualified stem cell’ means a 

25 human stem cell obtained from a human placenta, 
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1 umbilical cord blood, an organ or tissue of a living 

2 or deceased human being who has been born, or an 

3 organ or tissue of unborn human offspring who died 

4 of natural causes (such as spontaneous abortion). 

5 ‘‘(3) ELIGIBLE FACILITY.—The term ‘eligible 

6 facility’ means a research institution or storage facil7 ity that does not engage in research relating to stem 

8 cells derived from human embryos and does not 

9 store stem cells derived from human embryos. 

10 ‘‘(c) QUALIFIED UMBILICAL CORD BLOOD DONA11 TION.—For purposes of this section, the term ‘qualified 

12 umbilical cord blood donation’ means the donation by the 

13 taxpayer, on the occasion of the birth of a child of the 

14 taxpayer, of— 

15 ‘‘(1) the neonatal blood remaining in the pla16 centa and umbilical cord after separation of the 

17 mother from the newborn baby, or 

18 ‘‘(2) any other part of the umbilical cord. 

19 ‘‘(d) FILING REQUIREMENTS.— 

20 ‘‘(1) MARRIED INDIVIDUALS.—If the taxpayer 

21 is married at the close of the taxable year, the credit 

22 shall be allowed under subsection (a)(2) only if— 

23 ‘‘(A) the taxpayer and his spouse file a 

24 joint return for the taxable year, or 
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1 ‘‘(B) the taxpayer is the mother of the 

2 child referred to in subsection (c). 

3 ‘‘(2) INDIVIDUALS WHO ARE NOT MARRIED.—If 

4 the taxpayer is not married at the close of the tax5 able year, the credit shall be allowed under sub6 section (a) only if the taxpayer is the mother of the 

7 child referred to in subsection (c). 

8 ‘‘(3) MARITAL STATUS.—An individual legally 

9 separated from his spouse under a decree of divorce 

10 or of separate maintenance shall not be considered 

11 as married.’’. 

12 (b) BUSINESS RELATED CREDIT FOR QUALIFIED

13 RESEARCH AND STORAGE.—Subpart D of part IV of sub14 chapter 1 of such Code is amended by inserting after sec15 tion 45I the following new section: 

16 ‘‘SEC. 45J. QUALIFIED STEM CELL RESEARCH AND STOR17 AGE CREDITS. 

18 ‘‘(a) GENERAL RULE.—For purposes of section 38— 

19 ‘‘(1) QUALIFIED STEM CELL RESEARCH CRED20 IT.—The qualified stem cell research credit deter21 mined under this paragraph for any taxable year is 

22 equal to 100 percent of the expenses paid or in23 curred by the taxpayer during the taxable year that 

24 are directly related to qualified stem cell research. 
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1 ‘‘(2) QUALIFIED STEM CELL STORAGE CRED2 IT.—The qualified stem cell storage credit deter3 mined under this paragraph for any taxable year is 

4 equal to— 

5 ‘‘(A) 50 percent of the expenses paid or in6 curred by the taxpayer during the taxable year 

7 to establish a storage facility for qualified stem 

8 cells, and 

9 ‘‘(B) 20 percent of the expenses paid or in10 curred by the taxpayer during the taxable year 

11 to maintain the storage facility described in 

12 subparagraph (A). 

13 ‘‘(b) LIMITATION.—With respect to a qualified stem 

14 cell storage facility for which an amount determined under 

15 subparagraph (A) of subsection (a)(2) has been allowed 

16 as a credit in a taxable year, the amount determined under 

17 such subparagraph with respect to such storage facility 

18 in a subsequent taxable year shall be zero. 

19 ‘‘(c) QUALIFIED STEM CELL.—For purposes of this 

20 section, the term ‘qualified stem cell’ means a human stem 

21 cell obtained from a human placenta, umbilical cord blood, 

22 an organ or tissue of a living or deceased human being 

23 who has been born, or an organ or tissue of unborn human 

24 offspring who died of natural causes (such as spontaneous 

25 abortion).’’. 
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1 (c) CONFORMING AMENDMENTS.— 

2 (1) Section 38(b) is amended by striking ‘‘plus’’ 

3 at the end of paragraph (18), by striking the period 

4 at the end of paragraph (19) and inserting ‘‘, plus’’, 

5 and by adding at the end the following: 

6 ‘‘(20) the qualified stem cell research and stor7 age credits determined under section 45J(a).’’. 

8 (2) The table of sections for subpart A of part 

9 IV of subchapter A of chapter 1 of such Code is 

10 amended by inserting after the item relating to sec11 tion 25B the following new item: 

‘‘Sec. 25C. Qualified stem cell research, storage, and donation credit.’’. 

12 (3) The table of sections for subpart D of part 

13 IV of subchapter A of chapter 1 of such Code is 

14 amended by inserting after the item relating to sec15 tion 25B the following new item: 

‘‘Sec. 45J. Qualified stem cell research and storage credits.’’. 

16 (d) EFFECTIVE DATE.—The amendments made by 

17 this section shall apply to taxable years beginning after 

18 December 31, 2005. 

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