I 

118TH CONGRESS 

2D SESSION H. R. 6979 

To amend the Internal Revenue Code of 1986 to provide a credit to small 

businesses for research activities related to the mitigation of certain 

drug threats. 

IN THE HOUSE OF REPRESENTATIVES 

JANUARY 11, 2024 

Mr. NEGUSE (for himself, Ms. DEAN of Pennsylvania, Mr. BACON, Mr. 

TRONE, Mr. LAWLER, and Mr. CISCOMANI) 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 to small businesses for research activities related 

to the mitigation of certain drug threats. 

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

3 SECTION 1. CREDIT FOR RESEARCH ACTIVITIES OF SMALL 

4 BUSINESSES RELATED TO THE MITIGATION 

5 OF CERTAIN DRUG THREATS. 

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 


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

2 at the end the following new paragraph: 

3 ‘‘(4) in the case of a small business (as defined 

4 in subsection (b)(3)(D)(iii)), 10 percent of the quali5 fied drug threat mitigation research expenses (as de6 fined in subsection (i)) for the taxable year.’’. 

7 (b) DEFINITIONS.—Section 41 of such Code is 

8 amended by adding at the end the following new sub9 section: 

10 ‘‘(i) QUALIFIED DRUG THREAT MITIGATION RE11 SEARCH EXPENSES.—For purposes of this section— 

12 ‘‘(1) QUALIFIED DRUG THREAT MITIGATION RE13 SEARCH EXPENSES.—The term ‘qualified drug 

14 threat mitigation research expenses’ means the 

15 qualified research expenses which would be deter16 mined under subsection (b) if ‘qualified drug threat 

17 mitigation research’ were substituted for ‘qualified 

18 research’ each place it appears therein. 

19 ‘‘(2) QUALIFIED DRUG THREAT MITIGATION RE20 SEARCH.—The term ‘qualified drug threat mitiga21 tion research’ means qualified research which is un22 dertaken for the purpose of discovering information 

23 related to mitigating or treating the effects of the 

24 use of a specified drug or to preventing, diverting, 

25 or intervening in such use. Such term shall not inVerDate Sep 11 2014 03:00 Jan 18, 2024 Jkt 049200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H6979.IH H6979

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1 clude any clinical research unless such research com2 plies with the policies and guidelines of the National 

3 Institutes of Health for clinical research. 

4 ‘‘(3) SPECIFIED DRUG.— 

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

6 drug’ means any emerging drug, fentanyl, 

7 fentanyl-related substance, or methamphet8 amine. 

9 ‘‘(B) EMERGING DRUG.—The term ‘emerg10 ing drug’ means a drug designated as an 

11 emerging drug threat under section 709(c) of 

12 the Office of National Drug Control Policy Re13 authorization Act of 1998 (21 U.S.C. 1708(c)). 

14 Such term shall include any such drug for any 

15 taxable year if such designation is in effect 

16 under such section at any time during such tax17 able year. 

18 ‘‘(C) FENTANYL-RELATED SUBSTANCE.— 

19 The term ‘fentanyl-related substance’ means 

20 any substance that is structurally related to 

21 fentanyl by 1 or more of the following modifica22 tions: 

23 ‘‘(i) By replacement of the phenyl por24 tion of the phenethyl group by any monoVerDate Sep 11 2014 03:00 Jan 18, 2024 Jkt 049200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H6979.IH H6979

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1 cycle, whether or not further substituted in 

2 or on the monocycle. 

3 ‘‘(ii) By substitution in or on the 

4 phenethyl group with alkyl, alkenyl, 

5 alkoxyl, hydroxyl, halo, haloalkyl, amino, or 

6 nitro groups. 

7 ‘‘(iii) By substitution in or on the pi8 peridine ring with alkyl, alkenyl, alkoxyl, 

9 ester, ether, hydroxyl, halo, haloalkyl, 

10 amino, or nitro groups. 

11 ‘‘(iv) By replacement of the aniline 

12 ring with any aromatic monocycle whether 

13 or not further substituted in or on the aro14 matic monocycle. 

15 ‘‘(v) By replacement of the N–pro16 pionyl group with another acyl group.’’. 

17 (c) EFFECTIVE DATE.—The amendments made by 

18 this section shall apply to taxable years beginning after 

19 the date of the enactment of this Act. 

20 (d) GAO REPORT.—During the 60-day period begin21 ning on the date which 10 years after the date of the en22 actment of this Act, the Comptroller General shall submit 

23 a written report to Congress regarding the amount of tax 

24 credits allowed under section 41(a)(4) of the Internal Rev25 enue Code of 1986 for qualified drug threat mitigation 


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1 expenses and the types of qualified drug threat mitigation 

2 research with respect to which such credits were allowed. 

3 The Comptroller General shall ensure that the data in 

4 such report is anonymous and that any studies undertaken 

5 to prepare such report do not impede qualified drug threat 

6 mitigation research. 

Æ 


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