I 

111TH CONGRESS 

1ST SESSION H. R. 3156 

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

tax for expenses paid or incurred in non-clinical research for neglected 

diseases. 

IN THE HOUSE OF REPRESENTATIVES 

JULY 9, 2009 

Mr. PAYNE (for himself, Mr. LEWIS of Georgia, Mr. BRADY of Texas, and 

Mr. MEEK of Florida) 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 

a credit against tax for expenses paid or incurred in 

non-clinical research for neglected diseases. 

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

3 SECTION 1. CREDIT FOR NON-CLINICAL TESTING EX4 PENSES FOR NEGLECTED DISEASE TREAT5 MENTS. 

6 (a) IN GENERAL.—Subpart D of part IV of sub7 chapter A of chapter 1 of the Internal Revenue Code of 

8 1986 (relating to business related credits) is amended by 

9 adding at the end the following: 


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1 ‘‘SEC. 45R. NON-CLINICAL TESTING EXPENSES FOR NE2 GLECTED DISEASE TREATMENTS. 

3 ‘‘(a) IN GENERAL.—For purposes of section 38, the 

4 credit determined under this section for the taxable year 

5 is an amount equal to 50 percent of the qualified non6 clinical research expenses for the taxable year. 

7 ‘‘(b) QUALIFIED NON-CLINICAL RESEARCH EX8 PENSES.— 

9 ‘‘(1) IN GENERAL.—For purposes of this sec10 tion, the term ‘qualified non-clinical research ex11 penses’ means the amounts which are paid or in12 curred by the taxpayer during the taxable year 

13 which would be described in subsection (b) of section 

14 41 if such subsection were applied with the modifica15 tions set forth in paragraph (2). 

16 ‘‘(2) MODIFICATIONS.—For purposes of para17 graph (1), subsection (b) of section 41 shall be ap18 plied by substituting ‘non-clinical research’ for 

19 ‘qualified research’ each place it appears in para20 graphs (2) and (3) of such subsection. 

21 ‘‘(3) DONATION OF RIGHTS TO TREATMENT RE22 QUIRED.—No credit shall be allowed under this sec23 tion with respect to qualified non-clinical research 

24 expenses for a taxable year unless— 

25 ‘‘(A) during such taxable year, or in a pre26 vious taxable year, the taxpayer has made a 


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1 charitable contribution of a license for the 

2 treatment with respect to which such qualified 

3 non-clinical research expenses were paid or in4 curred and either— 

5 ‘‘(i) the charitable contribution has 

6 the same meaning as defined in section 

7 170(c) and such charitable contribution is 

8 made to a charitable organization where 

9 the charitable organization licensee re10 searches, develops, or administers treat11 ments for neglected conditions or diseases, 

12 or 

13 ‘‘(ii) the charitable contribution is 

14 made to a foreign government or any sub15 division or organization owned by the fore16 going, but only if the contribution is made 

17 for exclusively public purposes, 

18 ‘‘(B) the only commercial rights retained 

19 by the taxpayer with respect to such treatment 

20 are for an indication which is not a neglected 

21 condition or disease, and 

22 ‘‘(C) no deduction has been allowed under 

23 any provision of this title with respect to such 

24 contribution. 


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1 ‘‘(c) DEFINITION AND SPECIAL RULES.—For pur2 poses of this section— 

3 ‘‘(1) NON-CLINICAL RESEARCH.—The term 

4 ‘non-clinical research’ means any research relating 

5 to the development of a treatment for a neglected 

6 disease or condition to the extent such research is 

7 not human clinical testing with respect to such 

8 treatment. 

9 ‘‘(2) NEGLECTED DISEASE OR CONDITION.— 

10 The term ‘neglected disease or condition’ means any 

11 of the following: 

12 ‘‘(A) African trypanosomiasis. 

13 ‘‘(B) Dengue fever. 

14 ‘‘(C) Leishmaniasis. 

15 ‘‘(D) Malaria. 

16 ‘‘(E) Schistosomiasis. 

17 ‘‘(F) Tuberculosis. 

18 ‘‘(G) Chagas disease. 

19 ‘‘(H) Leprosy. 

20 ‘‘(I) Lymphatic filariasis. 

21 ‘‘(J) Onchocerciasis. 

22 ‘‘(K) Lassa Fever. 

23 ‘‘(L) Soil Transmitted Helminthiasis. 

24 ‘‘(M) Trachoma. 

25 ‘‘(N) Yaws. 


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1 ‘‘(O) Dracunculiasis. 

2 ‘‘(P) Cholera. 

3 ‘‘(Q) Buruli Ulcer. 

4 ‘‘(R) Any other infectious disease for which 

5 there is no significant market in developed na6 tions and disproportionately affects poor and 

7 marginalized populations as determined and 

8 designated by regulation by the Secretary of the 

9 Treasury in consultation with the Secretary of 

10 Health and Human Services. 

11 ‘‘(3) CERTAIN RULES MADE APPLICABLE.— 

12 Rules similar to the rules of paragraphs (1) and (2) 

13 of section 41(f), paragraph (4) of section 41(d), and 

14 subsections (b)(1)(C) and (c) of section 45C shall 

15 apply for purposes of this section. 

16 ‘‘(4) TREATMENT AS TRADE OR BUSINESS EX17 PENSE.—For purposes of this section and section 

18 174 whether a qualified non-clinical research ex19 pense (determined after the application of this para20 graph) is paid or incurred in connection with the 

21 taxpayer’s trade or business shall be determined 

22 without regard to any contribution of licensing 

23 rights described in subsection (b)(3). 

24 ‘‘(5) EXPENSES FOR WHICH CREDITS ARE AL25 LOWABLE.—For purposes of this section, the limitaVerDate Nov 24 2008 05:18 Jul 10, 2009 Jkt 079200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\H3156.IH H3156

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1 tions under section 280C are not applicable for pur2 poses of determining whether an expense is deduct3 ible or chargeable to a capital account.’’. 

4 (b) CREDIT TO BE PART OF GENERAL BUSINESS

5 CREDIT.—Subsection (b) of section 38 of such Code (re6 lating to current year business credit) is amended by strik7 ing ‘‘plus’’ at the end of paragraph (34), by striking the 

8 period at the end of paragraph (35) and inserting ‘‘, plus’’, 

9 and by adding at the end the following new paragraph: 

10 ‘‘(36) the neglected disease credit determined 

11 under section 45R.’’. 

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

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

14 of the such Code is amended by adding at the end the 

15 following new item: 

‘‘Sec. 45R. Non-clinical testing expenses for neglected disease treatments.’’. 

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

17 this section shall apply to taxable years beginning after 

18 December 31, 2009. 

Æ 


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