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 psy-
chiatric conditions. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Mental Health Re-
search Accelerator Act of 2023’’. 
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SEC. 2. EXPENSES FOR CERTAIN TRANSLATIONAL RE-
SEARCH. 
(a) IN GENERAL.—Subpart D of part IV of sub-
chapter A of chapter 1 of the Internal Revenue Code of 
1986 is amended by adding at the end the following new 
section: 
‘‘SEC. 45BB. EXPENSES FOR CERTAIN TRANSLATIONAL RE-
SEARCH. 
‘‘(a) ALLOWANCE OF CREDIT.—For purposes of sec-
tion 38, the translational research credit determined under 
this section for any taxable year shall be an amount equal 
to 25 percent of the amounts paid or incurred by the tax-
payer during such taxable year which are necessary for 
translational research regarding neurodegenerative dis-
eases and psychiatric conditions. 
‘‘(b) LIMITATION.— 
‘‘(1) TAXPAYER
LIMITATION.—The credit al-
lowed under this section to a taxpayer for a taxable 
year beginning in any calendar year shall not exceed 
the portion of the limitation amount allocated to the 
taxpayer under this subsection reduced by the 
amount of credit allowed to the taxpayer under this 
section for all prior taxable years. 
‘‘(2) AGGREGATE NATIONAL LIMITATION.— 
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out the purposes of this section, including es-
tablishing the application process and the cri-
teria for allocation under subparagraph (B). 
Such regulations shall include the following: 
‘‘(i) Amounts shall be allocated based 
on scientific merit. 
‘‘(ii) 
Projects 
should 
include 
all 
phases of the research continuum. 
‘‘(iii) An emphasis on new thera-
peutics and devices targeted at central 
nervous system disorders and in the neuro-
logical and psychiatric fields. 
‘‘(iv) Standards for repurposing exist-
ing drugs and devices for new purposes. 
‘‘(v) Standards for public-private part-
nerships with priority given to collaborative 
efforts and sharing of intellectual property 
held by tax exempt entities involved in the 
project. 
‘‘(c) TRANSFER OF CREDIT.— 
‘‘(1) IN GENERAL.—If, with respect to a credit 
under subsection (a) for any taxable year— 
‘‘(A) a tax-exempt entity would be the tax-
payer (but for this paragraph), and 
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‘‘(B) such entity elects the application of 
this paragraph for such taxable year with re-
spect to all (or any portion specified in such 
election) of such credit, 
the eligible project partner specified in such election, 
and not the tax-exempt entity, shall be treated as 
the taxpayer for purposes of this title with respect 
to such credit (or such portion thereof). 
‘‘(2) DEFINITIONS.—For purposes of this sub-
section— 
‘‘(A) TAX-EXEMPT
ENTITY.—The term 
‘tax-exempt entity’ means— 
‘‘(i) a Federal, State, Indian tribal 
government 
(as 
defined 
in 
section 
7701(a)(4)), or local government entity, or 
any political subdivision, agency, or instru-
mentality thereof, and 
‘‘(ii) an organization described in sec-
tion 501(c)(3) and exempt from tax under 
section 501(a). 
‘‘(B) ELIGIBLE PROJECT PARTNER.—The 
term ‘eligible project partner’ means any person 
who— 
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‘‘(i) is identified in the application for 
allocation of credit under this section as a 
project partner, and 
‘‘(ii) participates in, or provides fund-
ing for, the research with respect to which 
limitation was allocated by the Secretary 
under subsection (b). 
‘‘(3) SPECIAL RULES.— 
‘‘(A) IN GENERAL.—In the case of a credit 
under subsection (a) which is determined at the 
partnership level— 
‘‘(i) for purposes of paragraph (1)(A), 
a tax-exempt entity shall be treated as the 
taxpayer with respect to such entity’s dis-
tributive share of such credit, and 
‘‘(ii) the term ‘eligible project partner’ 
shall include any partner of the partner-
ship. 
‘‘(B) TAXABLE
YEAR
IN
WHICH
CREDIT 
TAKEN
INTO
ACCOUNT.—In the case of any 
credit (or portion thereof) with respect to which 
an election is made under paragraph (1), such 
credit shall be taken into account in the first 
taxable year of the eligible project partner end-
ing with, or after, the tax-exempt entity’s tax-
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able year with respect to which the credit was 
determined. 
‘‘(d) COORDINATION WITH CREDIT FOR INCREASING 
RESEARCH EXPENDITURES.— 
‘‘(1) IN GENERAL.—Except as provided in para-
graph (2), any expenses taken into account under 
this section shall not be taken into account for pur-
poses of determining the credit allowable under sec-
tion 41 for such taxable year. 
‘‘(2) EXPENSES
INCLUDED
IN
DETERMINING 
BASE PERIOD RESEARCH EXPENSES.—Any expenses 
taken into account under this section which are 
qualified research expenses (within the meaning of 
section 41(b)) shall be taken into account in deter-
mining base period research expenses for purposes of 
applying section 41 to subsequent taxable years. 
‘‘(e) TERMINATION.—No credit shall be allowed 
under this section for any taxable year beginning after De-
cember 31, 2033.’’. 
(b) DEDUCTION DISALLOWED.—Section 280C of 
such Code is amended by adding at the end the following 
new subsection: 
‘‘(i) CREDIT
FOR CERTAIN TRANSLATIONAL RE-
SEARCH.—No deduction shall be allowed for that portion 
of the expenses taken into account under section 45BB 
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otherwise allowable as a deduction for the taxable year 
which is equal to the amount of the credit determined for 
such taxable year under such section.’’. 
(c) CREDIT MADE PART OF GENERAL BUSINESS 
CREDIT.—Section 38(b) of the Internal Revenue Code of 
1986 is amended by striking ‘‘plus’’ at the end of para-
graph (40), by striking the period at the end of paragraph 
(41) and inserting ‘‘, plus’’, and by adding at the end the 
following new paragraph: 
‘‘(42) the credit determined under section 
45BB.’’. 
(d) CLERICAL AMENDMENT.—The table of sections 
for subpart D of part IV of subchapter A of chapter 1 
of such Code is amended by adding at the end the fol-
lowing new item: 
‘‘Sec. 45BB. Expenses for certain translational research.’’. 
(e) EFFECTIVE DATE.—The amendments made by 
this subsection shall take effect on the date of the enact-
ment of this Act. 
Æ 
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