I 

114TH CONGRESS 

2D SESSION H. R. 4865 

To ensure the development and responsible stewardship of nanotechnology. 

IN THE HOUSE OF REPRESENTATIVES 

MARCH 23, 2016 

Mr. HONDA introduced the following bill; which was referred to the Committee 

on Science, Space, and Technology, and in addition to the Committees 

on Energy and Commerce, Ways and Means, and Homeland Security, for 

a period to be subsequently determined by the Speaker, in each case for 

consideration of such provisions as fall within the jurisdiction of the committee concerned 

A BILL 

To ensure the development and responsible stewardship of 

nanotechnology. 

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 ‘‘Nanotechnology Ad5 vancement and New Opportunities Act’’. 


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1 TITLE I—INVESTMENT IN 

2 NANOTECHNOLOGY INDUSTRY 

3 SEC. 101. NANOMANUFACTURING INVESTMENT PARTNER4 SHIP. 

5 (a) ESTABLISHMENT.—If $100,000,000 is made 

6 available for such purposes from the private sector within 

7 2 years after the date of enactment of this Act, the Sec8 retary of Commerce shall establish the Nanomanufactur9 ing Investment Partnership, in partnership with such pri10 vate sector investors. 

11 (b) PURPOSE.—The Nanomanufacturing Investment 

12 Partnership shall provide funding for precommercial nano13 manufacturing research and development projects, but not 

14 for basic research projects, through funding mechanisms 

15 described in subsection (c) in a manner so as to advance 

16 the commercialization of nanomanufacturing technologies 

17 to address critical scientific and engineering needs of na18 tional importance, especially with respect to projects that 

19 would not be adequately funded or pursued by the private 

20 sector or pursuant to the 21st Century Nanotechnology 

21 Research and Development Act or other law, and to in22 crease the commercial application of federally supported 

23 research results. To the extent that a sufficient number 

24 of viable applications have been submitted, at least 85 per25 cent of the funding provided by the Nanomanufacturing 


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1 Investment Partnership under this section shall be pro2 vided to startup companies. 

3 (c) FUNDING MECHANISMS.—The Nanomanufactur4 ing Investment Partnership may provide funding through 

5 direct investment in nanomanufacturing firms, contracts, 

6 loans or loan guarantees, unsecured subordinated debt, or 

7 any other mechanism designed to advance nanomanufac8 turing technologies. 

9 (d) RETURN ON INVESTMENT.— 

10 (1) REQUIREMENT.—Each transaction through 

11 which the Nanomanufacturing Investment Partner12 ship provides funding under subsection (c) shall pro13 vide for the return to the Nanomanufacturing In14 vestment Partnership of fair and reasonable 

15 amounts resulting from the commercialization of 

16 technologies developed with the funding provided by 

17 the Nanomanufacturing Investment Partnership. 

18 (2) DISTRIBUTION.—Amounts received by the 

19 Nanomanufacturing Investment Partnership pursu20 ant to paragraph (1) shall be distributed as follows: 

21 (A) Except as provided in subparagraph 

22 (B), amounts shall be distributed to all inves23 tors in the Nanomanufacturing Investment 

24 Partnership, including the Federal Government, 

25 in proportion to their monetary contribution to 


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1 the Nanomanufacturing Investment Partner2 ship. 

3 (B) After the total monetary investment of 

4 the Federal Government has been recovered 

5 under subparagraph (A), the Federal share of 

6 distributions under this paragraph shall be re7 duced to 7 percent of the proportional distribu8 tion under subparagraph (A), and the remain9 ing amounts shall be distributed proportionately 

10 to all non-Federal investors. 

11 (e) COST SHARING.—Each applicant for funding as12 sistance from the Nanomanufacturing Investment Part13 nership for a project shall be required to provide a portion 

14 of the cost of the project. 

15 (f) ADMINISTRATION.—The Secretary of Commerce, 

16 based on guidance from the Advisory Board established 

17 under subsection (i), shall make awards of funding under 

18 this section. The Advisory Board may obtain additional 

19 peer review in preparing guidance for the Secretary under 

20 this subsection. 

21 (g) PROGRESS REPORTS.—The Nanomanufacturing 

22 Investment Partnership shall require periodic project 

23 progress reports from recipients of funding under this sec24 tion. 

25 (h) ADVISORY BOARD.— 


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1 (1) ESTABLISHMENT.—The Secretary of Com2 merce shall establish an Advisory Board to assist the 

3 Secretary in carrying out this section, including by 

4 establishing requirements for progress reports under 

5 subsection (g). The Advisory Board shall consist 

6 of— 

7 (A) representatives of each investor pro8 viding more than $10,000,000 to the Nanoman9 ufacturing Investment Partnership, whose votes 

10 shall— 

11 (i) be distributed proportional to the 

12 size of their investment in the Nanomanu13 facturing Investment Partnership; and 

14 (ii) collectively amount to 40 percent 

15 of the votes on the Advisory Board; and 

16 (B) independent experts on nanomanufac17 turing and finance appointed by the President 

18 from among representatives of government, in19 dustry, and academia, whose votes shall collec20 tively amount to 60 percent of the votes on the 

21 Advisory Board. 

22 (2) TERMS.—Members of the Advisory Board 

23 appointed under paragraph (1)(A) shall be ap24 pointed for 3-year terms, except that the President 

25 shall make some initial appointments for terms of 1 


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1 year and some for terms of 2 years, in order to en2 sure continuity of membership on the Advisory 

3 Board. 

4 (i) AUTHORIZATION OF APPROPRIATIONS.—There 

5 are authorized to be appropriated to the Secretary of Com6 merce for the Nanomanufacturing Investment Partnership 

7 $300,000,000, to remain available until expended. 

8 SEC. 102. TAX CREDIT FOR INVESTMENT IN NANOTECHNOL9 OGY FIRMS. 

10 (a) IN GENERAL.—Part IV of subchapter A of chap11 ter 1 of the Internal Revenue Code of 1986 (relating to 

12 credits against tax) is amended by adding at the end the 

13 following new subpart: 

14 ‘‘Subpart K—Nanotechnology Development Credit 

‘‘Sec. 54BB. Credit for purchase of nanotechnology developer stock. 

15 ‘‘SEC. 54BB. CREDIT FOR PURCHASE OF NANOTECHNOLO16 GY DEVELOPER STOCK. 

17 ‘‘(a) ALLOWANCE OF CREDIT.— 

18 ‘‘(1) IN GENERAL.—There shall be allowed as a 

19 credit against the tax imposed by this chapter for 

20 the taxable year an amount equal to the applicable 

21 percentage of the aggregate amount paid by the tax22 payer for the purchase of qualified nanotechnology 

23 developer stock. 


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1 ‘‘(2) APPLICABLE PERCENTAGE.—For purposes 

2 of subsection (a), the applicable percentage is— 

3 ‘‘(A) 5.25 percent for the taxable year in 

4 which the qualified nanotechnology developer 

5 stock is purchased, 

6 ‘‘(B) 3.75 percent for the taxable year fol7 lowing the year in which such stock is pur8 chased, 

9 ‘‘(C) 3 percent for the second taxable year 

10 following the year in which such stock is pur11 chased, 

12 ‘‘(D) 1.5 percent for the third taxable year 

13 following the year in which such stock is pur14 chased, 

15 ‘‘(E) 1.5 percent for fourth taxable year 

16 following the year in which such stock is pur17 chased, and 

18 ‘‘(F) 0 percent for any taxable year after 

19 the fourth taxable year following the year in 

20 which such stock is purchased. 

21 ‘‘(b) LIMITATIONS.— 

22 ‘‘(1) AMOUNT OF INVESTMENT ELIGIBLE.—No 

23 credit shall be allowed under subsection (a) with re24 spect to amounts paid in any taxable year for the 


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1 purchase of qualified nanotechnology developer stock 

2 which is in excess of $10,000,000. 

3 ‘‘(2) APPLICATION WITH OTHER CREDITS.— 

4 The credit allowed under subsection (a) for any tax5 able year shall not exceed the excess of— 

6 ‘‘(A) the regular tax for the taxable year 

7 reduced by the sum of the credits allowable 

8 under this part (other than subpart C thereof), 

9 over 

10 ‘‘(B) the tentative minimum tax for the 

11 taxable year. 

12 ‘‘(c) QUALIFIED NANOTECHNOLOGY DEVELOPER

13 STOCK.—For purposes of this section— 

14 ‘‘(1) IN GENERAL.—The term ‘qualified nano15 technology developer stock’ means any common 

16 stock in a C corporation or any membership unit in 

17 a State-registered limited liability company if— 

18 ‘‘(A) as of the date of issuance of such 

19 stock or membership unit, such corporation or 

20 company is a qualified nanotechnology devel21 oper, 

22 ‘‘(B) such stock is acquired by the tax23 payer at its original issue (directly or through 

24 an underwriter) in exchange for money or other 

25 property (not including stock), and 


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1 ‘‘(C) the proceeds of such issue are used 

2 by such issuer during the 5-year period begin3 ning on the date of issuance for the develop4 ment, production, or sale of products using 

5 nanotechnology. 

6 ‘‘(2) QUALIFIED NANOTECHNOLOGY DEVEL7 OPER.—The term ‘qualified nanotechnology devel8 oper’ means any entity— 

9 ‘‘(A) which is a C corporation or limited li10 ability company organized under the laws of 

11 any State or of the United States, 

12 ‘‘(B) which is a small business concern (as 

13 defined in section 3(a) of the Small Business 

14 Act), and 

15 ‘‘(C) with respect to which a certification 

16 under subsection (d) is in effect. 

17 ‘‘(3) NANOTECHNOLOGY.—The term ‘nanotech18 nology’ means the science of understanding and ma19 nipulating matter on an atomic or molecular scale, 

20 generally to create structures, and usually at a size 

21 smaller than 100 nanometers. 

22 ‘‘(d) CERTIFICATION.— 

23 ‘‘(1) IN GENERAL.—The Secretary, in consulta24 tion with the National Nanotechnology Coordination 

25 Office, shall certify an entity under this subsection 


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1 if such entity demonstrates by the submission of 

2 such information as required by the Secretary that 

3 not less than 51 percent of its activities relate to the 

4 development, production, and sale of products using 

5 nanotechnology. 

6 ‘‘(2) REVOCATION.—The Secretary shall revoke 

7 the certification of any entity which is certified 

8 under paragraph (1) if the Secretary determines 

9 that— 

10 ‘‘(A) the proceeds from any qualified nano11 technology developer stock issued by such entity 

12 are used during the 5-year period following 

13 such issue for a purpose other than the develop14 ment, production, or sale of products using 

15 nanotechnology, or 

16 ‘‘(B) such entity no longer meets the re17 quirements of paragraph (1). 

18 ‘‘(3) SUBMISSION OF INFORMATION.—The Sec19 retary may require any entity certified under para20 graph (1) to provide such information as the Sec21 retary may require in order ensure compliance with 

22 the purposes of this section. 

23 ‘‘(e) CARRYOVER OF UNUSED CREDIT.— 

24 ‘‘(1) IN GENERAL.—If the credit amount allow25 able under subsection (a) for a taxable year exceeds 


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1 the amount of the limitation under subsection (h) 

2 for such taxable year, such excess shall be allowed 

3 as a credit carryforward for each of the 20 taxable 

4 years following the unused credit year. 

5 ‘‘(2) RULES.—Rules similar to the rules of sec6 tion 39 shall apply with respect to the credit carry7 forward under paragraph (1). 

8 ‘‘(f) RECAPTURE OF CREDIT.—If— 

9 ‘‘(1) the taxpayer fails to hold qualified nano10 technology developer stock for the 7-year period be11 ginning on the date such stock was purchased by the 

12 taxpayer, or 

13 ‘‘(2) during such 7-year period, the issuer of 

14 such stock ceases to be a qualified nanotechnology 

15 developer, 

16 then notwithstanding any other provision of this subtitle, 

17 the tax imposed by this chapter on the taxpayer for the 

18 taxable year beginning in the calendar year in which such 

19 cessation occurred shall be increased by the aggregate 

20 amount of credit allowed under subsection (a) to the tax21 payer with respect to such stock. 

22 ‘‘(g) SPECIAL RULE.—For purposes of this section, 

23 rules similar to the rules of section 1202(c)(3) shall apply. 


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1 ‘‘(h) BASIS ADJUSTMENTS.—For purposes of this 

2 subtitle, if a credit is allowed under this section for the 

3 purchase of any stock— 

4 ‘‘(1) the increase in the basis of such stock 

5 which would (but for this subsection) result from 

6 such purchase shall be reduced by the amount of the 

7 credit so allowed, and 

8 ‘‘(2) the basis of such stock shall be increased 

9 by the amount of any increase in tax by reason of 

10 subsection (f).’’. 

11 (b) CONFORMING AMENDMENT.—Subsection (a) of 

12 section 1016 of such Code is amended by striking ‘‘and’’ 

13 at the end of paragraph (36), by striking the period at 

14 the end of paragraph (37) and inserting ‘‘; and’’, and by 

15 adding at the end the following new paragraph: 

16 ‘‘(38) to the extent provided in section 

17 54BB(h), in the case of amounts with respect to 

18 which a credit has been allowed under section 54BB 

19 or a recapture imposed under section 54BB(f).’’. 

20 (c) CLERICAL AMENDMENT.—The table of subparts 

21 for part IV is amended by adding at the end the following 

22 new item: 

‘‘SUBPART K. NANOTECHNOLOGY DEVELOPMENT CREDIT’’. 

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

24 this section shall apply to amounts paid after December 

25 31, 2015. 


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1 SEC. 103. NANOTECHNOLOGY ASSISTANCE. 

2 (a) DEFINITIONS.—In this section: 

3 (1) COMMERCIALIZATION.—The term ‘‘commer4 cialization’’ means the process of converting nano5 technology research into products and processes that 

6 are used in the marketplace. 

7 (2) DEGREE-GRANTING INSTITUTION.—The 

8 term ‘‘degree-granting institution’’ means an institu9 tion of higher education, as defined in section 101 

10 of the Higher Education Act of 1965 (20 U.S.C. 

11 1001), that awards an associate or baccalaureate de12 gree. 

13 (3) INCUBATOR.—The term ‘‘incubator’’ means 

14 an entity affiliated with or housed in a degree-grant15 ing institution that provides space and coordinated 

16 and specialized services to entrepreneurial businesses 

17 that work in the field of nanotechnology commer18 cialization and that meets selected criteria during 

19 the businesses’ startup phase, including providing 

20 services such as shared office space and services, ac21 cess to equipment, access to telecommunications and 

22 technology services, flexible leases, specialized man23 agement assistance, access to financing, and other 

24 coordinated business or technical support services. 

25 (4) NANOTECHNOLOGY.—The term ‘‘nanotech26 nology’’ means the science of understanding and maVerDate Sep 11 2014 00:55 Mar 25, 2016 Jkt 059200 PO 00000 Frm 00013 Fmt 6652 Sfmt 6201 E:\BILLS\H4865.IH H4865

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1 nipulating matter on an atomic or molecular scale, 

2 generally to create structures, and usually at a size 

3 smaller than 100 nanometers. 

4 (5) SECRETARY.—The term ‘‘Secretary’’ means 

5 the Secretary of Commerce. 

6 (b) GRANTS AUTHORIZED.— 

7 (1) IN GENERAL.—The Secretary is authorized 

8 to establish within the Technology Administration of 

9 the Department of Commerce a grant program to 

10 support the establishment and development of incu11 bators. 

12 (2) ALLOCATION OF FUNDS.—From the 

13 amount appropriated pursuant to the authorization 

14 of appropriations in subsection (e) for a fiscal year, 

15 the Secretary— 

16 (A) shall use 80 percent of such amount 

17 to— 

18 (i) make awards, on a competitive 

19 basis, in amounts of up to $2,500,000, to 

20 help acquire or renovate space for incuba21 tors; and 

22 (ii) make awards, on a competitive 

23 basis, in amounts of $50,000 to $150,000, 

24 for— 


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1 (I) developing curricula related to 

2 nanotechnology; 

3 (II) providing services for com4 mercialization, including preparing 

5 providing services to appropriate busi6 nesses including corporate charters, 

7 partnership agreements, and basic 

8 contracts, assistance with patents, 

9 trademarks, and copyrights, and tech10 nology acquisition services; or 

11 (III) providing programming for 

12 entrepreneurs working in nanotechnol13 ogy housed in an incubator; 

14 (B) shall reserve 10 percent of the amount 

15 to make awards, on a competitive basis, in 

16 amounts of $50,000 to $150,000, for feasibility 

17 studies for determining the need for or siting of 

18 incubators; and 

19 (C) shall reserve 10 percent for research 

20 regarding best practices for incubator pro21 grams, including the development of a bench22 marking system based on uniform measures, 

23 and for dissemination of information regarding 

24 such practices. 


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1 (3) CONTRACTS.—The Secretary is authorized 

2 to contract with organizations with expertise in incu3 bation practices for the purposes of carrying out 

4 paragraph (2)(C). 

5 (4) USES OF FUNDS.—Funds awarded under 

6 paragraph (2)(A)(ii) may be used for— 

7 (A) curriculum, training, or technical as8 sistance related to nanotechnology developed by 

9 academic faculty with participation from entre10 preneurship experts; 

11 (B) programming that contributes to a co12 ordinated set of business assistance tools, such 

13 as developing management teams, providing 

14 workforce development, forming strategic alli15 ances, developing capital formation networks, 

16 and developing customized plans for commer17 cialization; and 

18 (C) hiring staff to coordinate the activities 

19 described in subparagraph (A) or (B) or for 

20 curriculum development. 

21 (5) RECIPIENTS.—The Secretary shall make an 

22 award— 

23 (A) described in paragraph (2)(A) to a 

24 nonprofit entity that has a strong affiliation 

25 with a degree-granting institution and manages 


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1 or provides technical assistance to the degree2 granting institution’s affiliated incubator, or if 

3 no nonprofit entity manages or provides tech4 nical assistance to the incubator, to the degree5 granting institution managing the incubator; 

6 and 

7 (B) described in paragraph (2)(B) to a de8 gree-granting institution. 

9 (6) APPLICATIONS.—Each entity desiring as10 sistance under this section shall submit an applica11 tion to the Secretary at such time, in such manner, 

12 and accompanied by such information as the Sec13 retary may require. 

14 (7) SELECTION.— 

15 (A) PRIORITY.—The Secretary shall give 

16 priority to funding applications under this sub17 section for activities that— 

18 (i) will be carried out at a facility that 

19 is included in the Centers and Networks of 

20 Excellence of the research and development 

21 program known as the National Nanotech22 nology Initiative; 

23 (ii) provide strong educational oppor24 tunities to students in fields related to 

25 nanotechnology and commercialization; and 


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1 (iii) require significant collaboration 

2 between businesses and academia. 

3 (B) CONSIDERATION.—The Secretary may 

4 give consideration to funding applications under 

5 this subsection that support— 

6 (i) the building of new incubators; 

7 (ii) incubators that work with faculty 

8 entrepreneurs or university-based research; 

9 (iii) incubators that are located in 

10 areas with an established venture capital 

11 industry and other industry support, in12 cluding leadership and legal support, for 

13 commercialization; or 

14 (iv) incubators that have secured ad15 ditional private funding. 

16 (c) NANOTECHNOLOGY STARTUP ADVISORY COUN17 CIL.— 

18 (1) ESTABLISHMENT.—The Secretary shall es19 tablish a Nanotechnology Startup Advisory Council 

20 composed of industry leaders, business and mar21 keting professionals, venture capitalists, attorneys, 

22 and nanotechnology researchers. 

23 (2) PURPOSE.—The purpose of the Nanotech24 nology Startup Advisory Council is to ensure that 


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1 emerging nanotechnology companies create a sound 

2 foundation for new business. 

3 (d) REPORT.—Not later than September 30 of the 

4 third fiscal year during which assistance is provided under 

5 this section, the Secretary shall prepare and submit to 

6 Congress a report that— 

7 (1) describes the most effective or innovative 

8 additions to curricula related to nanotechnology that 

9 were developed with such assistance; 

10 (2) contains a comparison of the success of 

11 nanotechnology companies developed in incubators 

12 that received such assistance with the success of 

13 other nanotechnology companies; 

14 (3) describes any factors leading to success of 

15 companies that were developed in incubators; 

16 (4) recommends the best role for degree-grant17 ing institutions in commercialization; and 

18 (5) contains a comparison of academic-affiliated 

19 incubators of specific missions and ages that re20 ceived assistance under this section with other incu21 bators with similar missions and ages. 

22 (e) AUTHORIZATION OF APPROPRIATIONS.—There 

23 are authorized to be appropriated to carry out this section 

24 $25,000,000 for each of the fiscal years 2016, 2017, and 

25 2018. 


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1 TITLE II—RESEARCH AND 

2 DEVELOPMENT DIRECTIONS 

3 SEC. 201. NANOSCALE SCIENCE AND ENGINEERING CEN4 TER. 

5 Section 9 of the 21st Century Nanotechnology Re6 search and Development Act (15 U.S.C. 7508) is amend7 ed— 

8 (1) by redesignating subsection (c) as sub9 section (d); and 

10 (2) by inserting after subsection (b) the fol11 lowing new subsection: 

12 ‘‘(c) NANOSCALE SCIENCE AND ENGINEERING CEN13 TER.— 

14 ‘‘(1) ESTABLISHMENT.—The National Science 

15 Foundation shall provide for the establishment, on a 

16 merit reviewed and competitive basis, of a center for 

17 the development of computer aided design tools for 

18 nanotechnology applications. 

19 ‘‘(2) AUTHORIZATION OF APPROPRIATIONS.— 

20 There are authorized to be appropriated to the Na21 tional Science Foundation for carrying out this sub22 section $10,000,000.’’. 

23 SEC. 202. FEDERAL PROGRAMS. 

24 The 21st Century Nanotechnology Research and De25 velopment Act (15 U.S.C. 7501 et seq.) is amended— 


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1 (1) by redesignating sections 9 and 10 as sec2 tions 12 and 13, respectively; 

3 (2) in section 8, by adding at the end the fol4 lowing new subsection: 

5 ‘‘(c) RESEARCH PROGRAM.— 

6 ‘‘(1) ESTABLISHMENT.—The Secretary of En7 ergy shall provide for the establishment, on a merit 

8 reviewed and competitive basis, of a grant program 

9 for nanotechnology research to address the need for 

10 clean, cheap, renewable energy. 

11 ‘‘(2) AUTHORIZATION OF APPROPRIATIONS.— 

12 There are authorized to be appropriated to the Sec13 retary of Energy for carrying out this subsection 

14 $30,000,000 for each fiscal year.’’; and 

15 (3) by inserting after section 8 the following 

16 new sections: 

17 ‘‘SEC. 9. ENVIRONMENTAL PROTECTION AGENCY PRO18 GRAMS. 

19 ‘‘(a) ESTABLISHMENT.—The Administrator of the 

20 Environmental Protection Agency shall provide for the es21 tablishment, on a merit reviewed and competitive basis, 

22 of a grant program for nanotechnology research to address 

23 technologies for the remediation of pollution and other en24 vironmental protection technologies. 


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1 ‘‘(b) AUTHORIZATION OF APPROPRIATIONS.—There 

2 are authorized to be appropriated to the Administrator of 

3 the Environmental Protection Agency for carrying out this 

4 section $30,000,000 for each fiscal year. 

5 ‘‘SEC. 10. DEPARTMENT OF HOMELAND SECURITY PRO6 GRAMS. 

7 ‘‘(a) ESTABLISHMENT.—The Secretary of Homeland 

8 Security shall provide for the establishment, on a merit 

9 reviewed and competitive basis, of a grant program for 

10 nanotechnology research to address the need for sensors 

11 and other materials related to homeland security needs. 

12 ‘‘(b) AUTHORIZATION OF APPROPRIATIONS.—There 

13 are authorized to be appropriated to the Secretary of 

14 Homeland Security for carrying out this section 

15 $30,000,000 for each fiscal year. 

16 ‘‘SEC. 11. DEPARTMENT OF HEALTH AND HUMAN SERVICES 

17 PROGRAMS. 

18 ‘‘(a) ESTABLISHMENT.—The Secretary of Health 

19 and Human Services shall provide for the establishment, 

20 on a merit reviewed and competitive basis, of a grant pro21 gram for nanotechnology research to address the health 

22 related applications of nanotechnology. 

23 ‘‘(b) AUTHORIZATION OF APPROPRIATIONS.—There 

24 are authorized to be appropriated to the Secretary of 


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1 Health and Human Services for carrying out this section 

2 $30,000,000 for each fiscal year.’’. 

3 TITLE III—ENVIRONMENTAL 

4 NANOTECHNOLOGY APPLICA5 TIONS 

6 SEC. 301. NANOTECHNOLOGY RESEARCH STRATEGY. 

7 Not later than 1 year after the date of enactment 

8 of this Act, the Director of the National Nanotechnology 

9 Coordination Office shall, after consultation with appro10 priate Federal agencies and industry, transmit to the Con11 gress a report containing a nanotechnology research strat12 egy that establishes priorities for the Federal Government 

13 and industry that will ensure the development and respon14 sible stewardship of nanotechnology. The report shall in15 clude recommendations regarding the funding levels the 

16 Director anticipates the agencies charged with imple17 menting this research strategy will require. 

18 TITLE IV—EDUCATION 

19 SEC. 401. CREDIT FOR NANOTECHNOLOGY EDUCATION AND 

20 TRAINING PROGRAM EXPENSES. 

21 (a) IN GENERAL.—Subpart B of part IV of sub22 chapter A of chapter 1 of the Internal Revenue Code of 

23 1986 is amended by adding at the end the following: 


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1 ‘‘SEC. 30E. NANOTECHNOLOGY EDUCATION AND TRAINING 

2 PROGRAM EXPENSES. 

3 ‘‘(a) ALLOWANCE OF CREDIT.— 

4 ‘‘(1) IN GENERAL.—There shall be allowed as a 

5 credit against the tax imposed by this chapter for 

6 the taxable year an amount equal to 50 percent of 

7 nanotechnology education and training program ex8 penses paid or incurred by the taxpayer for the ben9 efit of— 

10 ‘‘(A) in the case of a taxpayer engaged in 

11 a trade or business, an employee of the tax12 payer, or 

13 ‘‘(B) in the case of a taxpayer who is an 

14 individual not so engaged, such individual. 

15 ‘‘(2) COORDINATION OF CREDITS.—Credit shall 

16 be allowable to the employer with respect to an em17 ployee only to the extent that the employee assigns 

18 some or all of the limitation applicable to such em19 ployee under subsection (b) to such employer. 

20 ‘‘(b) LIMITATIONS.— 

21 ‘‘(1) IN GENERAL.—The amount of expenses 

22 with respect to any individual which may be taken 

23 into account under subsection (a) for the taxable 

24 year shall not exceed $4,000. 

25 ‘‘(2) INCREASE IN CREDIT AMOUNT FOR PAR26 TICIPATION IN CERTAIN PROGRAMS AND FOR CERVerDate Sep 11 2014 00:55 Mar 25, 2016 Jkt 059200 PO 00000 Frm 00024 Fmt 6652 Sfmt 6201 E:\BILLS\H4865.IH H4865

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1 TAIN INDIVIDUALS.—Paragraph (1) shall be applied 

2 by substituting ‘$5,000’ for ‘$4,000’ in the case of 

3 expenses— 

4 ‘‘(A) with respect to a program operated— 

5 ‘‘(i) in an empowerment zone or en6 terprise community designated under part 

7 I of subchapter U or a renewal community 

8 designated under part I of subchapter X, 

9 ‘‘(ii) in a school district in which at 

10 least 50 percent of the students attending 

11 schools in such district are eligible for free 

12 or reduced-cost lunches under the school 

13 lunch program established under the Rich14 ard B. Russell National School Lunch Act, 

15 ‘‘(iii) in an area designated as a dis16 aster area by the Secretary of Agriculture 

17 under section 321 of the Consolidated 

18 Farm and Rural Development Act or by 

19 the President under the Robert T. Stafford 

20 Disaster Relief and Emergency Assistance 

21 Act in the taxable year or the 4 preceding 

22 taxable years, 

23 ‘‘(iv) in a rural enterprise community 

24 designated under section 766 of the Agri25 culture, Rural Development, Food and 


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1 Drug Administration, and Related Agen2 cies Appropriations Act, 1999 (112 Stat. 

3 2681–37), 

4 ‘‘(v) in an area designated by the Sec5 retary of Agriculture as a Rural Economic 

6 Area Partnership Zone, 

7 ‘‘(vi) in an area over which an Indian 

8 tribal government (as defined in section 

9 7701(a)(40)) has jurisdiction, or 

10 ‘‘(vii) by an employer who has 200 or 

11 fewer employees for each business day in 

12 each of 20 or more calendar weeks in the 

13 current or preceding calendar year, or 

14 ‘‘(B) in the case of an individual with a 

15 disability. 

16 ‘‘(c) NANOTECHNOLOGY EDUCATION AND TRAINING

17 PROGRAM EXPENSES.—For purposes of this section— 

18 ‘‘(1) IN GENERAL.—The term ‘nanotechnology 

19 education and training program expenses’ means ex20 penses paid or incurred by reason of the participa21 tion of the taxpayer (or any employee of the tax22 payer) in any nanotechnology education and training 

23 program. Such expenses shall include expenses paid 

24 in connection with— 

25 ‘‘(A) course work, 


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1 ‘‘(B) certification testing, 

2 ‘‘(C) programs carried out under the Act 

3 of August 16, 1937 (50 Stat. 664, chapter 663; 

4 29 U.S.C. 50 et seq.), which are registered by 

5 the Department of Labor, and 

6 ‘‘(D) other expenses that are essential to 

7 assessing skill acquisition. 

8 ‘‘(2) NANOTECHNOLOGY EDUCATION AND

9 TRAINING PROGRAM.—The term ‘nanotechnology 

10 education and training program’ means a training 

11 program in nanotechnology workplace disciplines or 

12 other skill sets which is provided in the United 

13 States by an accredited college, university, private 

14 career school, postsecondary educational institution, 

15 a commercial nanotechnology provider, or an em16 ployer-owned nanotechnology training organization. 

17 ‘‘(3) COMMERCIAL NANOTECHNOLOGY TRAIN18 ING PROVIDER.—The term ‘commercial nanotechnol19 ogy training provider’ means a private sector organi20 zation providing a nanotechnology education and 

21 training program. 

22 ‘‘(4) EMPLOYER-OWNED NANOTECHNOLOGY

23 TRAINING ORGANIZATION.—The term ‘employer24 owned nanotechnology training organization’ means 

25 a private sector organization that provides nanotechVerDate Sep 11 2014 00:55 Mar 25, 2016 Jkt 059200 PO 00000 Frm 00027 Fmt 6652 Sfmt 6201 E:\BILLS\H4865.IH H4865

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1 nology training to its employees using internal train2 ing development and delivery personnel. The training 

3 programs must use industry-recognized training dis4 ciplines and evaluation methods, comparable to insti5 tutional and commercial training providers. 

6 ‘‘(d) DENIAL OF DOUBLE BENEFIT.— 

7 ‘‘(1) DISALLOWANCE OF OTHER CREDITS AND

8 DEDUCTIONS.—No deduction or credit shall be al9 lowed under any other provision of this chapter for 

10 expenses taken into account in determining the cred11 it under this section. 

12 ‘‘(2) REDUCTION FOR HOPE AND LIFETIME

13 LEARNING CREDITS.—The amount taken into ac14 count under subsection (a) shall be reduced by the 

15 nanotechnology education and training program ex16 penses taken into account in determining the credits 

17 under section 25A. 

18 ‘‘(e) CERTAIN RULES MADE APPLICABLE.—For pur19 poses of this section, rules similar to the rules of section 

20 45A(e)(2) and subsections (c), (d), and (e) of section 52 

21 shall apply. 

22 ‘‘(f) APPLICATION WITH OTHER CREDITS.—The 

23 credit allowed by subsection (a) for any taxable year shall 

24 not exceed the excess (if any) of— 


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1 ‘‘(1) the regular tax for the taxable year re2 duced by the sum of the credits allowable under the 

3 subpart A and the previous sections of this subpart, 

4 over 

5 ‘‘(2) the tentative minimum tax for the taxable 

6 year.’’. 

7 (b) CLERICAL AMENDMENT.—The table of sections 

8 for subpart B of part IV of subchapter A of chapter 1 

9 of the Internal Revenue Code of 1986 is amended by add10 ing at the end the following: 

‘‘Sec. 30E. Nanotechnology education and training program expenses.’’. 

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

12 this section shall apply to amounts paid or incurred in tax13 able years beginning after December 31, 2015. 

14 SEC. 402. ELIGIBLE EDUCATIONAL INSTITUTION. 

15 (a) IN GENERAL.—Section 25A(f)(2) of the Internal 

16 Revenue Code of 1986 (relating to eligible educational in17 stitution) is amended to read as follows: 

18 ‘‘(2) ELIGIBLE EDUCATIONAL INSTITUTION.— 

19 The term ‘eligible educational institution’ means— 

20 ‘‘(A) an institution— 

21 ‘‘(i) which is described in section 

22 101(b) or 102(a) of the Higher Education 

23 Act of 1965, and 

24 ‘‘(ii) which is eligible to participate in 

25 a program under title IV of such Act, or 


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1 ‘‘(B) a commercial nanotechnology training 

2 provider (as defined in section 30E(c)(3)).’’. 

3 (b) CONFORMING AMENDMENT.—The second sen4 tence of section 221(d)(2) of the Internal Revenue Code 

5 of 1986 is amended by striking ‘‘section 25A(f)(2)’’ and 

6 inserting ‘‘section 25A(f)(2)(A)’’. 

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

8 this section shall apply to taxable years beginning after 

9 December 31, 2015. 

10 SEC. 403. CURRICULUM DEVELOPMENT PROGRAM. 

11 (a) ESTABLISHMENT.—The National Science Foun12 dation shall provide for the establishment, on a merit re13 viewed and competitive basis, of a grant program for the 

14 development of curriculum materials for interdisciplinary 

15 nanotechnology courses at institutions of higher education. 

16 (b) AUTHORIZATION OF APPROPRIATIONS.—There 

17 are authorized to be appropriated to the National Science 

18 Foundation for carrying out this section $15,000,000 for 

19 each of the fiscal years 2016 through 2019. 

20 SEC. 404. TRAINING PARTNERSHIPS. 

21 The National Science Foundation, through its Ad22 vanced Technological Education program, shall establish 

23 a program to encourage manufacturing companies to enter 

24 into partnerships with occupational training centers for 


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1 the development of training to support nanotechnology 

2 manufacturing. 

3 TITLE V—PUBLIC OUTREACH 

4 SEC. 501. INTERACTION BETWEEN SCIENTISTS AND ENGI5 NEERS. 

6 Not later than 6 months after the date of enactment 

7 of this Act, the Secretary of Energy shall transmit to the 

8 Congress a report containing a strategy for increasing 

9 interaction on nanotechnology issues between scientists 

10 and engineers at the Department of Energy’s National 

11 Laboratories and in the informal science education com12 munity, to enable researchers to use their expertise to as13 sist in the development of appropriate nanotechnology ex14 hibitions for school age children and the general public. 

Æ 


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