I 

118TH CONGRESS 

1ST SESSION H. R. 5207 

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 

AUGUST 15, 2023 

Mr. BUCHANAN (for himself, Mr. FITZPATRICK, and Mr. KELLY of Pennsylvania) 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 


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

2 at the end the following new paragraph: 

3 ‘‘(4) 14 percent of specified medical research 

4 expenditures.’’. 

5 (b) SPECIFIED MEDICAL RESEARCH EXPENDI6 TURES.—Section 41(f) of such Code is amended by adding 

7 at the end the following new paragraph: 

8 ‘‘(7) SPECIFIED MEDICAL RESEARCH EXPENDI9 TURES.— 

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

11 medical research expenditures’ means amounts 

12 paid or incurred for qualified research with re13 spect to any qualified countermeasure. 

14 ‘‘(B) QUALIFIED COUNTERMEASURE.—The 

15 term ‘qualified countermeasure’ has the mean16 ing given to such term in section 319F–1(a)(2) 

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

18 247d–6a(a)(2)).’’. 

19 (c) DENIAL OF DOUBLE BENEFIT.— 

20 (1) TAXABLE YEARS BEGINNING BEFORE JANU21 ARY 1, 2024.—In the case of specified medical re22 search expenditures (as defined in section 41(f)(7) 

23 of such Code (as added by this section)) paid or in24 curred in taxable years beginning before January 1, 

25 2024— 


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1 (A) such expenditures shall be treated in 

2 the same manner as qualified research expenses 

3 and basic research expenses under section 

4 280C(c)(1) of such Code (as in effect on the 

5 day before the enactment of the Tax Cuts and 

6 Jobs Act), and 

7 (B) the amount determined under section 

8 280C(c)(2)(A) (as in effect on such day) for the 

9 taxable year shall be increased by the amount 

10 of credit determined for the taxable year under 

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

12 (2) TAXABLE YEARS BEGINNING AFTER DECEM13 BER 31, 2023.—Section 280C(c)(1) of such Code is 

14 amended by striking ‘‘section 41(a)(1)’’ and insert15 ing ‘‘paragraphs (1) and (4) of section 41(a)’’. 

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

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

18 incurred to energy research consortiums’’ each place it ap19 pears and inserting ‘‘, amounts paid or incurred to energy 

20 research consortiums, and specified medical research ex21 penditures’’. 

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

23 this section shall apply to amounts paid or incurred after 


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

2 ending after such date. 

Æ 


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