I 

118TH CONGRESS 

1ST SESSION H. R. 5821 

To amend the Internal Revenue Code of 1986 to provide for a credit against 

tax for expenses for translational research regarding neurodegenerative 

diseases and psychiatric conditions. 

IN THE HOUSE OF REPRESENTATIVES 

SEPTEMBER 28, 2023 

Mr. THOMPSON of California (for himself 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 provide 

for a credit against tax for expenses for translational 

research regarding neurodegenerative diseases and psychiatric conditions. 

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 ‘‘Mental Health Re5 search Accelerator Act of 2023’’. 


kjohnson on DSK7ZCZBW3PROD with $$_JOB
2 

•HR 5821 IH

1 SEC. 2. EXPENSES FOR CERTAIN TRANSLATIONAL RE2 SEARCH. 

3 (a) IN GENERAL.—Subpart D of part IV of sub4 chapter A of chapter 1 of the Internal Revenue Code of 

5 1986 is amended by adding at the end the following new 

6 section: 

7 ‘‘SEC. 45BB. EXPENSES FOR CERTAIN TRANSLATIONAL RE8 SEARCH. 

9 ‘‘(a) ALLOWANCE OF CREDIT.—For purposes of sec10 tion 38, the translational research credit determined under 

11 this section for any taxable year shall be an amount equal 

12 to 25 percent of the amounts paid or incurred by the tax13 payer during such taxable year which are necessary for 

14 translational research regarding neurodegenerative dis15 eases and psychiatric conditions. 

16 ‘‘(b) LIMITATION.— 

17 ‘‘(1) TAXPAYER LIMITATION.—The credit al18 lowed under this section to a taxpayer for a taxable 

19 year beginning in any calendar year shall not exceed 

20 the portion of the limitation amount allocated to the 

21 taxpayer under this subsection reduced by the 

22 amount of credit allowed to the taxpayer under this 

23 section for all prior taxable years. 

24 ‘‘(2) AGGREGATE NATIONAL LIMITATION.— 


kjohnson on DSK7ZCZBW3PROD with $$_JOB
3 

•HR 5821 IH

1 ‘‘(A) IN GENERAL.—There is a 

2 translational research credit limitation for each 

3 calendar year as follows: 

4 ‘‘(i) $1,000,000,000 for 2024. 

5 ‘‘(ii) $2,000,000,000 for each of years 

6 2025 through 2028. 

7 ‘‘(iii) $1,000,000,000 for 2029. 

8 ‘‘(B) ALLOCATION OF LIMITATION.—As 

9 expeditiously as possible, the Secretary shall al10 locate among applicants selected by the Sec11 retary the limitation under subparagraph (A) 

12 for all years. 

13 ‘‘(C) CARRYOVER OF UNUSED LIMITA14 TION.—If the translational research credit limi15 tation for any calendar year exceeds the aggre16 gate amount allocated under subparagraph (A) 

17 for such year, such limitation for the succeeding 

18 calendar year shall be increased by the amount 

19 of such excess. 

20 ‘‘(D) REGULATIONS.—The Secretary shall 

21 (in consultation with the Secretary of Health 

22 and Humans Services, the Administrator of the 

23 Food and Drug Administration, and the Direc24 tor of the National Institutes of Health) pre25 scribe regulations as may be necessary to carry 


kjohnson on DSK7ZCZBW3PROD with $$_JOB
4 

•HR 5821 IH

1 out the purposes of this section, including es2 tablishing the application process and the cri3 teria for allocation under subparagraph (B). 

4 Such regulations shall include the following: 

5 ‘‘(i) Amounts shall be allocated based 

6 on scientific merit. 

7 ‘‘(ii) Projects should include all 

8 phases of the research continuum. 

9 ‘‘(iii) An emphasis on new thera10 peutics and devices targeted at central 

11 nervous system disorders and in the neuro12 logical and psychiatric fields. 

13 ‘‘(iv) Standards for repurposing exist14 ing drugs and devices for new purposes. 

15 ‘‘(v) Standards for public-private part16 nerships with priority given to collaborative 

17 efforts and sharing of intellectual property 

18 held by tax exempt entities involved in the 

19 project. 

20 ‘‘(c) TRANSFER OF CREDIT.— 

21 ‘‘(1) IN GENERAL.—If, with respect to a credit 

22 under subsection (a) for any taxable year— 

23 ‘‘(A) a tax-exempt entity would be the tax24 payer (but for this paragraph), and 


kjohnson on DSK7ZCZBW3PROD with $$_JOB
5 

•HR 5821 IH

1 ‘‘(B) such entity elects the application of 

2 this paragraph for such taxable year with re3 spect to all (or any portion specified in such 

4 election) of such credit, 

5 the eligible project partner specified in such election, 

6 and not the tax-exempt entity, shall be treated as 

7 the taxpayer for purposes of this title with respect 

8 to such credit (or such portion thereof). 

9 ‘‘(2) DEFINITIONS.—For purposes of this sub10 section— 

11 ‘‘(A) TAX-EXEMPT ENTITY.—The term 

12 ‘tax-exempt entity’ means— 

13 ‘‘(i) a Federal, State, Indian tribal 

14 government (as defined in section 

15 7701(a)(4)), or local government entity, or 

16 any political subdivision, agency, or instru17 mentality thereof, and 

18 ‘‘(ii) an organization described in sec19 tion 501(c)(3) and exempt from tax under 

20 section 501(a). 

21 ‘‘(B) ELIGIBLE PROJECT PARTNER.—The 

22 term ‘eligible project partner’ means any person 

23 who— 


kjohnson on DSK7ZCZBW3PROD with $$_JOB
6 

•HR 5821 IH

1 ‘‘(i) is identified in the application for 

2 allocation of credit under this section as a 

3 project partner, and 

4 ‘‘(ii) participates in, or provides fund5 ing for, the research with respect to which 

6 limitation was allocated by the Secretary 

7 under subsection (b). 

8 ‘‘(3) SPECIAL RULES.— 

9 ‘‘(A) IN GENERAL.—In the case of a credit 

10 under subsection (a) which is determined at the 

11 partnership level— 

12 ‘‘(i) for purposes of paragraph (1)(A), 

13 a tax-exempt entity shall be treated as the 

14 taxpayer with respect to such entity’s dis15 tributive share of such credit, and 

16 ‘‘(ii) the term ‘eligible project partner’ 

17 shall include any partner of the partner18 ship. 

19 ‘‘(B) TAXABLE YEAR IN WHICH CREDIT

20 TAKEN INTO ACCOUNT.—In the case of any 

21 credit (or portion thereof) with respect to which 

22 an election is made under paragraph (1), such 

23 credit shall be taken into account in the first 

24 taxable year of the eligible project partner end25 ing with, or after, the tax-exempt entity’s taxVerDate Sep 11 2014 00:19 Oct 04, 2023 Jkt 049200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6201 E:\BILLS\H5821.IH H5821

kjohnson on DSK7ZCZBW3PROD with $$_JOB
7 

•HR 5821 IH

1 able year with respect to which the credit was 

2 determined. 

3 ‘‘(d) COORDINATION WITH CREDIT FOR INCREASING

4 RESEARCH EXPENDITURES.— 

5 ‘‘(1) IN GENERAL.—Except as provided in para6 graph (2), any expenses taken into account under 

7 this section shall not be taken into account for pur8 poses of determining the credit allowable under sec9 tion 41 for such taxable year. 

10 ‘‘(2) EXPENSES INCLUDED IN DETERMINING

11 BASE PERIOD RESEARCH EXPENSES.—Any expenses 

12 taken into account under this section which are 

13 qualified research expenses (within the meaning of 

14 section 41(b)) shall be taken into account in deter15 mining base period research expenses for purposes of 

16 applying section 41 to subsequent taxable years. 

17 ‘‘(e) TERMINATION.—No credit shall be allowed 

18 under this section for any taxable year beginning after De19 cember 31, 2033.’’. 

20 (b) DEDUCTION DISALLOWED.—Section 280C of 

21 such Code is amended by adding at the end the following 

22 new subsection: 

23 ‘‘(i) CREDIT FOR CERTAIN TRANSLATIONAL RE24 SEARCH.—No deduction shall be allowed for that portion 

25 of the expenses taken into account under section 45BB 


kjohnson on DSK7ZCZBW3PROD with $$_JOB
8 

•HR 5821 IH

1 otherwise allowable as a deduction for the taxable year 

2 which is equal to the amount of the credit determined for 

3 such taxable year under such section.’’. 

4 (c) CREDIT MADE PART OF GENERAL BUSINESS

5 CREDIT.—Section 38(b) of the Internal Revenue Code of 

6 1986 is amended by striking ‘‘plus’’ at the end of para7 graph (40), by striking the period at the end of paragraph 

8 (41) and inserting ‘‘, plus’’, and by adding at the end the 

9 following new paragraph: 

10 ‘‘(42) the credit determined under section 

11 45BB.’’. 

12 (d) CLERICAL AMENDMENT.—The table of sections 

13 for subpart D of part IV of subchapter A of chapter 1 

14 of such Code is amended by adding at the end the fol15 lowing new item: 

‘‘Sec. 45BB. Expenses for certain translational research.’’. 

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

17 this subsection shall take effect on the date of the enact18 ment of this Act. 

Æ 


kjohnson on DSK7ZCZBW3PROD with $$_JOB