I 

118TH CONGRESS 

1ST SESSION H. R. 5206 

To amend the Internal Revenue Code of 1986 to make a portion of research 

credit refundable for certain small businesses engaging in specified medical research. 

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 make 

a portion of research credit refundable for certain small 

businesses engaging in specified medical research. 

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

3 SECTION 1. REFUNDABLE PORTION OF RESEARCH CREDIT 

4 FOR SMALL BUSINESSES ENGAGING IN SPEC5 IFIED MEDICAL RESEARCH. 

6 (a) IN GENERAL.—Section 41 of the Internal Rev7 enue Code of 1986 is amended by adding at the end the 

8 following new subsection: 


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1 ‘‘(i) REFUNDABLE PORTION FOR SMALL BUSI2 NESSES ENGAGING IN SPECIFIED MEDICAL RESEARCH.— 

3 ‘‘(1) IN GENERAL.—At the election of a medical 

4 research small business, the portion of the credit de5 termined under this section for the taxable year 

6 which is properly allocable to specified medical re7 search shall be treated (other than for purposes of 

8 section 280C) as a credit allowed under subpart C 

9 (and not this subpart). 

10 ‘‘(2) MEDICAL RESEARCH SMALL BUSINESS.— 

11 For purposes of this subsection, the term ‘medical 

12 research small business’ means any domestic C cor13 poration— 

14 ‘‘(A) which conducts any specified medical 

15 research during the taxable year, and 

16 ‘‘(B) the gross receipts of which (deter17 mined under the rules of subsection (c)) for the 

18 taxable year do not exceed $1,000,000. 

19 ‘‘(3) SPECIFIED MEDICAL RESEARCH.—For 

20 purposes of this subsection, the term ‘specified med21 ical research’ means any qualified research with re22 spect to qualified countermeasures (as defined in 

23 section 319F–1(a)(2) of the Public Health Service 

24 Act (42 U.S.C. 247d–6a(a)(2))). 


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1 ‘‘(4) ELECTION.—Any election under this sub2 section for any taxable year— 

3 ‘‘(A) shall specify the amount of the credit 

4 to which such election applies, 

5 ‘‘(B) shall be made on or before the due 

6 date (including extensions) of the return of tax 

7 for the taxable year, 

8 ‘‘(C) may not be made for any taxable year 

9 with respect to any portion of the credit deter10 mined under this section with respect to which 

11 an election is made under subsection (h), and 

12 ‘‘(D) may be revoked only with the consent 

13 of the Secretary. 

14 ‘‘(5) REGULATIONS.—The Secretary shall pre15 scribe such regulations for purposes of this sub16 section as may be necessary or appropriate for de17 termining proper allocation to specified medical re18 search of the portion of any credit allowed to a tax19 payer for a taxable year under this section.’’. 

20 (b) CONFORMING AMENDMENT.—Section 1324(b) of 

21 title 31, United States Code, is amended by inserting 

22 ‘‘41(i),’’ after ‘‘6428,’’. 


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

2 this section shall apply to taxable years beginning after 

3 December 31, 2022. 

Æ 


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