‘‘(B) EXCLUSION OF CERTAIN QUALIFIED 
VACCINE RESEARCH EXPENSES.—For purposes 
of determining the credit under this section for 
a taxable year, the qualified vaccine research 
expenses taken into account for such taxable 
year shall not include an amount paid or in-
curred during such taxable year equal to the 
amount described in paragraph (2)(D) (and not 
already taken into account under this subpara-
graph for a previous taxable year).’’. 
(b) INCLUSION IN GENERAL BUSINESS CREDIT.— 
Section 38(b) of the Internal Revenue Code of 1986 is 
amended by striking ‘‘plus’’ at the end of paragraph (18), 
by striking the period at the end of paragraph (19) and 
inserting ‘‘, plus’’, and by adding at the end the following 
new paragraph: 
‘‘(20) the vaccine research credit determined 
under section 45J.’’. 
(c) DENIAL OF DOUBLE BENEFIT.—Section 280C of 
the Internal Revenue Code of 1986 is amended by adding 
at the end the following new subsection: 
‘‘(e) CREDIT FOR QUALIFIED VACCINE RESEARCH 
EXPENSES.— 
‘‘(1) IN GENERAL.—No deduction shall be al-
lowed for that portion of the qualified vaccine re-
search expenses (as defined in section 45J(b)) other-
wise allowable as a deduction for the taxable year 
which is equal to the amount of the credit deter-
mined for such taxable year under section 45J(a). 
‘‘(2) CERTAIN RULES TO APPLY.—Rules similar 
to the rules of paragraphs (2), (3), and (4) of sub-
section (c) shall apply for purposes of this sub-
section.’’. 
(d) DEDUCTION FOR UNUSED PORTION OF CRED-
IT.—Section 196(c) of the Internal Revenue Code of 1986 
(defining qualified business credits) is amended by strik-
ing ‘‘and’’ at the end of paragraph (11), by striking the 
period at the end of paragraph (12) and inserting ‘‘, and’’, 
and by adding at the end the following new paragraph: 
‘‘(13) the vaccine research credit determined 
under section 45J(a) (other than such credit deter-
mined under the rules of section 280C(e)(2)).’’. 
(e) TECHNICAL AMENDMENTS.— 
(1) Section 1324(b)(2) of title 31, United 
States Code, is amended by inserting ‘‘or from sec-
tion 45J(e) of such Code,’’ after ‘‘1978,’’. 
(2) The table of sections for subpart D of part 
IV of subchapter A of chapter 1 of the Internal Rev-
enue Code of 1986 is amended by adding at the end 
the following new item:
‘‘Sec. 45J. Credit for medical research related to developing vaccines against 
widespread diseases.’’. 
(f) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2005. 
(g) STUDY.— 
(1) IN GENERAL.—The National Institutes of 
Health shall conduct a study of the extent to which 
the credit under section 45J of the Internal Revenue 
Code of 1986, as added by subsection (a), has stim-
ulated vaccine research. 
(2) REPORT.—Not later than the date that is 
5 years after the date of the enactment of this Act, 
the National Institutes of Health shall submit to 
Congress the results of the study conducted under 
paragraph (1), together with recommendations (if 
any) to improve the effectiveness of such credit in 
stimulating vaccine research. 
SEC. 9. CREDIT FOR CERTAIN SALES OF LIFESAVING VAC-
CINES. 
(a) IN GENERAL.—Subpart D of part IV of sub-
chapter A of chapter 1 of the Internal Revenue Code of 
1986 (relating to business related credits), as amended by 
section 4, is amended by adding at the end the following 
new section: