I 

116TH CONGRESS 

2D SESSION H. R. 7555 

To amend the Internal Revenue Code of 1986 to add a new medical research 

component to the credit for increasing research activities. 

IN THE HOUSE OF REPRESENTATIVES 

JULY 9, 2020 

Mr. NUNES 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 add a 

new medical research component to the credit for increasing research activities. 

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

3 SECTION 1. NEW MEDICAL RESEARCH EXPENDITURE COM4 PONENT OF CREDIT FOR INCREASING RE5 SEARCH ACTIVITIES. 

6 (a) IN GENERAL.—Section 41(a) of the Internal Rev7 enue Code of 1986 is amended by striking ‘‘and’’ at the 

8 end of paragraph (2), by striking the period at the end 

9 of paragraph (3) and inserting ‘‘, and’’, and by adding 

10 at the end the following new paragraph: 


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1 ‘‘(4) 14 percent of specified medical research 

2 expenditures.’’. 

3 (b) SPECIFIED MEDICAL RESEARCH EXPENDI4 TURES.—Section 41(f) of such Code is amended by adding 

5 at the end the following new paragraph: 

6 ‘‘(7) SPECIFIED MEDICAL RESEARCH EXPENDI7 TURES.— 

8 ‘‘(A) IN GENERAL.—The term ‘specified 

9 medical research expenditures’ means amounts 

10 paid or incurred for qualified research with re11 spect to any qualified countermeasure. 

12 ‘‘(B) QUALIFIED COUNTERMEASURE.—The 

13 term ‘qualified countermeasure’ has the mean14 ing given to such term in section 319F–1(a)(2) 

15 of the Public Health Service Act (42 U.S.C. 

16 247d–6a(a)(2)).’’. 

17 (c) DENIAL OF DOUBLE BENEFIT.— 

18 (1) TAXABLE YEARS BEGINNING BEFORE JANU19 ARY 1, 2021.—In the case of specified medical re20 search expenditures (as defined in section 41(f)(7) 

21 of such Code (as added by this section)) paid or in22 curred in taxable years beginning before January 1, 

23 2021— 

24 (A) such expenditures shall be treated in 

25 the same manner as qualified research expenses 


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1 and basic research expenses under section 

2 280C(c)(1) of such Code (as in effect on the 

3 day before the enactment of the Tax Cuts and 

4 Jobs Act), and 

5 (B) the amount determined under section 

6 280C(c)(2)(A) (as in effect on such day) for the 

7 taxable year shall be increased by the amount 

8 of credit determined for the taxable year under 

9 section 41(a)(4) (as added by this section). 

10 (2) TAXABLE YEARS BEGINNING AFTER DECEM11 BER 31, 2020.—Section 280C(c)(1) of such Code is 

12 amended by striking ‘‘section 41(a)(1)’’ and insert13 ing ‘‘paragraphs (1) and (4) of section 41(a)’’. 

14 (d) CONFORMING AMENDMENT.—Section 41(f)(1) of 

15 such Code is amended by striking ‘‘and amounts paid or 

16 incurred to energy research consortiums’’ each place it ap17 pears and inserting ‘‘, amounts paid or incurred to energy 

18 research consortiums, and specified medical research ex19 penditures’’. 

20 (e) EFFECTIVE DATE.—The amendments made by 

21 this section shall apply to amounts paid or incurred after 

22 the date of the enactment of this Act, in taxable years 

23 ending after such date. 

Æ 


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