I 

114TH CONGRESS 

2D SESSION H. R. 5366 

To amend the Internal Revenue Code of 1986 to exclude from gross income 

for seven years amounts earned from the sale of drugs that demonstrate 

breakthrough therapies for treating Alzheimer’s disease. 

IN THE HOUSE OF REPRESENTATIVES 

MAY 26, 2016 

Mr. MURPHY of Florida (for himself and Mr. FITZPATRICK) 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 exclude 

from gross income for seven years amounts earned from 

the sale of drugs that demonstrate breakthrough therapies for treating Alzheimer’s disease. 

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 ‘‘Alzheimer’s Break5 through Sunshine Act’’. 


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1 SEC. 2. EXCLUSION OF AMOUNTS RECEIVED IN SALES OF 

2 BREAKTHROUGH THERAPY DRUGS TO TREAT 

3 ALZHEIMER’S DISEASE. 

4 (a) IN GENERAL.—Part III of subchapter B of chap5 ter 1 of the Internal Revenue Code of 1986 is amended 

6 by inserting before section 140 the following new section: 

7 ‘‘SEC. 139F. BREAKTHROUGH THERAPY DRUGS TO TREAT 

8 ALZHEIMER’S DISEASE. 

9 ‘‘(a) IN GENERAL.—Gross income does not include 

10 amounts received from the qualified sale of an Alzheimer’s 

11 drug. 

12 ‘‘(b) LIMITATION.—Subsection (a) shall not apply 

13 after the end of the sixth taxable year beginning after the 

14 taxable year within which the Alzheimer’s drug is first ap15 proved by the Food and Drug Administration. 

16 ‘‘(c) DEFINITIONS.—For purposes of this section— 

17 ‘‘(1) ALZHEIMER’S DISEASE.—The term ‘Alz18 heimer’s disease’ means Alzheimer’s disease and re19 lated dementias. 

20 ‘‘(2) ALZHEIMER’S DRUG.—The term ‘Alz21 heimer’s drug’ means a drug approved or licensed 

22 under section 505 of the Federal Food, Drug, and 

23 Cosmetic Act or section 351 of the Public Health 

24 Service Act as a disease-modifying treatment for 

25 Alzheimer’s disease and that has been designated as 


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1 a breakthrough therapy under section 506(a) of the 

2 Federal Food, Drug, and Cosmetic Act. 

3 ‘‘(3) QUALIFIED SALE.—The term ‘qualified 

4 sale’ means the sale (through an arm’s length trans5 action) by the holder of the approved application for 

6 an Alzheimer’s drug. 

7 ‘‘(d) TERMINATION.—Subsection (a) shall not apply 

8 with respect to any Alzheimer’s drug that is first approved 

9 by the Food and Drug Administration after the date which 

10 is 10 years after the date of the enactment of this sec11 tion.’’. 

12 (b) CONFORMING AMENDMENT.—The table of sec13 tions for part III of subchapter B of chapter 1 of such 

14 Code is amended by inserting before the item relating to 

15 section 140 the following new item: 

‘‘Sec. 139F. Breakthrough therapy drugs to treat Alzheimer’s disease.’’. 

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

17 this Act shall apply to taxable years ending after the date 

18 of the enactment of this Act. 

Æ 


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