II 

112TH CONGRESS 

2D SESSION S. 3232 

To amend the Internal Revenue Code of 1986 and the Patient Protection 

and Affordable Care Act to extend, expand, and improve the qualifying 

therapeutic discovery project program. 

IN THE SENATE OF THE UNITED STATES 

MAY 23, 2012 

Mr. MENENDEZ introduced the following bill; which was read twice and 

referred to the Committee on Finance 

A BILL 

To amend the Internal Revenue Code of 1986 and the Patient Protection and Affordable Care Act to extend, expand, and improve the qualifying therapeutic discovery 

project program. 

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

3 SECTION 1. EXTENSION AND EXPANSION OF QUALIFYING 

4 THERAPEUTIC DISCOVERY PROJECT PRO5 GRAM. 

6 (a) EXTENSION.— 

7 (1) TAX CREDIT.—Section 48D(b)(5) of the In8 ternal Revenue Code of 1986 is amended by striking 


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•S 3232 IS

1 ‘‘beginning in 2009 or 2010’’ and inserting ‘‘begin2 ning in 2009, 2010, 2011, or 2012’’. 

3 (2) GRANTS.— 

4 (A) IN GENERAL.—Section 9023(e) of the 

5 Patient Protection and Affordable Care Act is 

6 amended by striking ‘‘beginning in 2009 or 

7 2010’’ and inserting ‘‘beginning in 2009, 2010, 

8 2011, or 2012’’. 

9 (B) APPLICATION DEADLINE.—Paragraph 

10 (11) of section 9023(e) of such Act is amended 

11 by striking ‘‘2013’’ and inserting ‘‘2014’’. 

12 (C) CONFORMING AMENDMENT.—Subpara13 graph (B) of section 9023(e)(2) of such Act is 

14 amended by striking ‘‘in 2010’’ each place it 

15 appears in the heading and the text and insert16 ing ‘‘after 2009’’. 

17 (3) EFFECTIVE DATE.—The amendments made 

18 by this subsection shall apply to investments made 

19 after December 31, 2010. 

20 (b) EXPANSION OF LIMITATION.—Section 

21 48D(d)(1)(B) is amended by striking ‘‘shall not exceed 

22 $1,000,000,000 for the 2-year period beginning with 

23 2009’’ and inserting ‘‘shall not exceed $2,000,000,000 for 

24 the 4-year period beginning with 2009’’. 

25 (c) TECHNICAL IMPROVEMENTS.— 


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1 (1) DEFINITION OF QUALIFYING PROJECTS.— 

2 (A) Section 48D(c)(1)(B) of the Internal 

3 Revenue Code of 1986 is amended by striking 

4 ‘‘to diagnose diseases or conditions or to deter5 mine molecular factors’’ and inserting ‘‘to diag6 nose diseases or conditions by determining mo7 lecular factors’’. 

8 (B) Section 48D(c)(1)(C) of such Code is 

9 amended to read as follows: 

10 ‘‘(C) to develop a molecular technology to 

11 further the delivery of therapeutics.’’. 

12 (2) EXTENSION OF TIME FOR REVIEW OF AP13 PLICATIONS.—Section 48D(d)(2)(B) of the Internal 

14 Revenue Code of 1986 is amended by striking ‘‘30 

15 days’’ and inserting ‘‘90 days’’. 

16 (3) EXTENSION OF TIME FOR PAYMENT OF

17 GRANTS.—Section 9023(e)(3)(A) of the Patient Pro18 tection and Affordable Care Act is amended by 

19 striking ‘‘30-day period’’ and inserting ‘‘90-day pe20 riod’’. 

21 (4) SELECTION CRITERIA.—Section 

22 48D(d)(3)(A) of the Internal Revenue Code of 1986 

23 is amended by striking ‘‘projects that show reason24 able potential’’ and inserting ‘‘projects that show 

25 significant potential’’. 


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1 (5) SENSE OF THE SENATE REGARDING STATE

2 TAXATION OF GRANTS.—Section 9023(e) of the Pa3 tient Protection and Affordable Care Act is amended 

4 by adding at the end the following new paragraph: 

5 ‘‘(13) SENSE OF THE SENATE REGARDING

6 STATE TAXATION OF GRANTS.—It is the Sense of 

7 the Senate that any grant awarded under this sub8 section should not be subject to tax under State 

9 laws.’’. 

10 (6) EFFECTIVE DATES.— 

11 (A) DEFINITION OF QUALIFYING

12 PROJECT.—The amendments made by para13 graph (1) shall take effect on the date of the 

14 enactment of this Act. 

15 (B) OTHER PROVISIONS.—The amend16 ments made by paragraphs (2), (3), and (4) 

17 shall apply to applications submitted after the 

18 date of the enactment of this Act. 

Æ 


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