Ethical Stem Cell Research Tax Credit Act of 2015

To amend the Internal Revenue Code of 1986 to provide a Federal income tax credit for certain stem cell research expenditures. 1. Short title This Act may be cited as the Ethical Stem Cell Research Tax Credit Act of 2015 2. Credit for ethical stem cell research (a) In general Subpart D of part IV of subchapter A of chapter 1 45S. Ethical stem cell research (a) Allowance of credit For purposes of section 38, in the case of an eligible taxpayer, the ethical stem cell research credit determined under this section for the taxable year shall be an amount equal to 30 percent of the qualified stem cell research expenses paid or incurred by the taxpayer during the taxable year. (b) Eligible taxpayer For purposes of this section, the term eligible taxpayer (c) Qualified stem cell research expenses For purposes of this section— (1) In general The term qualified stem cell research expenses (A) the creation of a human embryo for research purposes, (B) the destruction of or discarding of, or risk of injury to, a human embryo, or (C) the use of any stem cell, the derivation or provision of which would be inconsistent with subparagraph (A) or (B). (2) Human embryo The term human embryo (3) Risk of injury The term risk of injury 42 U.S.C. 289g(b) (d) Treatment of qualified stem cell research expenses (1) In general Except as provided in paragraph (2), any qualified stem cell research expenses for a taxable year to which an election under this section applies shall not be taken into account for purposes of determining the credit allowable under section 41 for such taxable year. (2) Treated as base period research expenses Any qualified stem cell research expenses for any taxable year which are qualified research expenses (within the meaning of section 41(b)) shall be taken into account in determining base period research expenses for purposes of applying section 41 to subsequent taxable years. (e) Special rules (1) Limitation No credit shall be allowed under this section with respect to any stem cell research conducted by a corporation to which an election under section 936 applies. (2) Aggregation of expenditures and allocations of credit Rules similar to the rules of paragraphs (1) and (2) of section 41(f) and section 41(g) shall apply for purposes of this section. . (b) Credit allowed as part of general business credit Section 38(b) plus , plus (37) the ethical stem cell research credit determined under section 45S(a). . (c) Denial of double benefit (1) Technical amendment The second subsection (g) of section 280C (2) In general Section 280C (j) Ethical stem cell research credit (1) In general No deduction shall be allowed for that portion of the qualified stem cell research expenses (as defined in section 45S(c)(1)) otherwise allowable as a deduction for the taxable year which is equal to the amount of the credit determined for such taxable year under section 45S(a). (2) Similar rule where taxpayer capitalizes rather than deducts expenses If— (A) the amount of the credit determined for the taxable year under section 45S(a), exceeds (B) the amount allowable as a deduction for such taxable year for qualified stem cell research expenses (determined without regard to paragraph (1)), the amount chargeable to capital account for the taxable year for such expenses shall be reduced by the amount of such excess. (3) Controlled groups Paragraph (3) of subsection (b) shall apply for purposes of this subsection. . (d) Clerical amendment The table of sections for subpart D of part IV of subchapter A of chapter 1 Sec. 45S. Ethical stem cell research. . (e) Effective Date The amendments made by this section shall apply to amounts paid or incurred after the date of the enactment of this Act.

Summary: Ethical Stem Cell Research Tax Credit Act of 2015 Amends the Internal Revenue Code to allow a tax credit for 30% of qualified stem cell research expenses paid or incurred in a taxable year. Defines "qualified stem cell research expenses" as expenses for carrying out basic and applied research to develop techniques for the isolation, derivation, production, testing, and human clinical use of stem cells that may result in improved understanding of or treatments for diseases and other adverse health conditions. Prohibits a tax credit for any research expenses that may involve: (1) the creation of a human embryo for research purposes; (2) the destruction of or discarding of, or risk of injury to, a human embryo; or (3) the use of any stem cell for prohibited purposes.