I 
112TH CONGRESS 
1ST SESSION H. R. 2749 
To ensure the development and responsible stewardship of nanotechnology. 
IN THE HOUSE OF REPRESENTATIVES 
AUGUST 1, 2011 
Mr. HONDA introduced the following bill; which was referred to the Committee 
on Science, Space, and Technology, and in addition to the Committees 
on Energy and Commerce, Ways and Means, and Homeland Security, for 
a period to be subsequently determined by the Speaker, in each case for 
consideration of such provisions as fall within the jurisdiction of the com-
mittee concerned 
A BILL 
To ensure the development and responsible stewardship of 
nanotechnology. 
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 ‘‘Nanotechnology Ad-
vancement and New Opportunities Act’’. 
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TITLE I—INVESTMENT IN 
NANOTECHNOLOGY INDUSTRY 
SEC. 101. NANOMANUFACTURING INVESTMENT PARTNER-
SHIP. 
(a) ESTABLISHMENT.—If $100,000,000 is made 
available for such purposes from the private sector within 
2 years after the date of enactment of this Act, the Sec-
retary of Commerce shall establish the Nanomanufac-
turing Investment Partnership, in partnership with such 
private sector investors. 
(b) PURPOSE.—The Nanomanufacturing Investment 
Partnership shall provide funding for precommercial nano-
manufacturing research and development projects, but not 
for basic research projects, through funding mechanisms 
described in subsection (c) in a manner so as to advance 
the commercialization of nanomanufacturing technologies 
to address critical scientific and engineering needs of na-
tional importance, especially with respect to projects that 
would not be adequately funded or pursued by the private 
sector or pursuant to the 21st Century Nanotechnology 
Research and Development Act or other law, and to in-
crease the commercial application of federally supported 
research results. To the extent that a sufficient number 
of viable applications have been submitted, at least 85 per-
cent of the funding provided by the Nanomanufacturing 
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Investment Partnership under this section shall be pro-
vided to startup companies. 
(c) FUNDING
MECHANISMS.—The Nanomanufac-
turing Investment Partnership may provide funding 
through direct investment in nanomanufacturing firms, 
contracts, loans or loan guarantees, unsecured subordi-
nated debt, or any other mechanism designed to advance 
nanomanufacturing technologies. 
(d) RETURN ON INVESTMENT.— 
(1) REQUIREMENT.—Each transaction through 
which the Nanomanufacturing Investment Partner-
ship provides funding under subsection (c) shall pro-
vide for the return to the Nanomanufacturing In-
vestment 
Partnership 
of 
fair 
and 
reasonable 
amounts resulting from the commercialization of 
technologies developed with the funding provided by 
the Nanomanufacturing Investment Partnership. 
(2) DISTRIBUTION.—Amounts received by the 
Nanomanufacturing Investment Partnership pursu-
ant to paragraph (1) shall be distributed as follows: 
(A) Except as provided in subparagraph 
(B), amounts shall be distributed to all inves-
tors in the Nanomanufacturing Investment 
Partnership, including the Federal Government, 
in proportion to their monetary contribution to 
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the Nanomanufacturing Investment Partner-
ship. 
(B) After the total monetary investment of 
the Federal Government has been recovered 
under subparagraph (A), the Federal share of 
distributions under this paragraph shall be re-
duced to 7 percent of the proportional distribu-
tion under subparagraph (A), and the remain-
ing amounts shall be distributed proportionately 
to all non-Federal investors. 
(e) COST SHARING.—Each applicant for funding as-
sistance from the Nanomanufacturing Investment Part-
nership for a project shall be required to provide a portion 
of the cost of the project. 
(f) ADMINISTRATION.—The Secretary of Commerce, 
based on guidance from the Advisory Board established 
under subsection (i), shall make awards of funding under 
this section. The Advisory Board may obtain additional 
peer review in preparing guidance for the Secretary under 
this subsection. 
(g) PROGRESS REPORTS.—The Nanomanufacturing 
Investment Partnership shall require periodic project 
progress reports from recipients of funding under this sec-
tion. 
(h) ADVISORY BOARD.— 
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(1) ESTABLISHMENT.—The Secretary of Com-
merce shall establish an Advisory Board to assist the 
Secretary in carrying out this section, including by 
establishing requirements for progress reports under 
subsection (g). The Advisory Board shall consist 
of— 
(A) representatives of each investor pro-
viding more than $10,000,000 to the Nanoman-
ufacturing Investment Partnership, whose votes 
shall— 
(i) be distributed proportional to the 
size of their investment in the Nanomanu-
facturing Investment Partnership; and 
(ii) collectively amount to 40 percent 
of the votes on the Advisory Board; and 
(B) independent experts on nanomanu-
facturing and finance appointed by the Presi-
dent from among representatives of govern-
ment, industry, and academia, whose votes shall 
collectively amount to 60 percent of the votes 
on the Advisory Board. 
(2) TERMS.—Members of the Advisory Board 
appointed under paragraph (1)(A) shall be ap-
pointed for 3-year terms, except that the President 
shall make some initial appointments for terms of 1 
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year and some for terms of 2 years, in order to en-
sure continuity of membership on the Advisory 
Board. 
(i) AUTHORIZATION
OF APPROPRIATIONS.—There 
are authorized to be appropriated to the Secretary of Com-
merce for the Nanomanufacturing Investment Partnership 
$300,000,000, to remain available until expended. 
SEC. 102. TAX CREDIT FOR INVESTMENT IN NANOTECHNOL-
OGY FIRMS. 
(a) IN GENERAL.—Part IV of subchapter A of chap-
ter 1 of the Internal Revenue Code of 1986 (relating to 
credits against tax) is amended by adding at the end the 
following new subpart: 
‘‘Subpart J—Nanotechnology Development Credit 
‘‘SEC. 54I. CREDIT FOR PURCHASE OF NANOTECHNOLOGY 
DEVELOPER STOCK. 
‘‘(a) ALLOWANCE OF CREDIT.— 
‘‘(1) IN GENERAL.—There shall be allowed as a 
credit against the tax imposed by this chapter for 
the taxable year an amount equal to the applicable 
percentage of the aggregate amount paid by the tax-
payer for the purchase of qualified nanotechnology 
developer stock. 
‘‘(2) APPLICABLE PERCENTAGE.—For purposes 
of subsection (a), the applicable percentage is— 
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‘‘(A) 5.25 percent for the taxable year in 
which the qualified nanotechnology developer 
stock is purchased, 
‘‘(B) 3.75 percent for the taxable year fol-
lowing the year in which such stock is pur-
chased, 
‘‘(C) 3 percent for the second taxable year 
following the year in which such stock is pur-
chased, 
‘‘(D) 1.5 percent for the third taxable year 
following the year in which such stock is pur-
chased, 
‘‘(E) 1.5 percent for fourth taxable year 
following the year in which such stock is pur-
chased, and 
‘‘(F) 0 percent for any taxable year after 
the fourth taxable year following the year in 
which such stock is purchased. 
‘‘(b) LIMITATIONS.— 
‘‘(1) AMOUNT OF INVESTMENT ELIGIBLE.—No 
credit shall be allowed under subsection (a) with re-
spect to amounts paid in any taxable year for the 
purchase of qualified nanotechnology developer stock 
which is in excess of $10,000,000. 
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‘‘(2) APPLICATION
WITH
OTHER
CREDITS.— 
The credit allowed under subsection (a) for any tax-
able year shall not exceed the excess of— 
‘‘(A) the regular tax for the taxable year 
reduced by the sum of the credits allowable 
under this part (other than subpart C thereof), 
over 
‘‘(B) the tentative minimum tax for the 
taxable year. 
‘‘(c) QUALIFIED
NANOTECHNOLOGY
DEVELOPER 
STOCK.—For purposes of this section— 
‘‘(1) IN GENERAL.—The term ‘qualified nano-
technology developer stock’ means any common 
stock in a C corporation or any membership unit in 
a State-registered limited liability company if— 
‘‘(A) as of the date of issuance of such 
stock or membership unit, such corporation or 
company is a qualified nanotechnology devel-
oper, 
‘‘(B) such stock is acquired by the tax-
payer at its original issue (directly or through 
an underwriter) in exchange for money or other 
property (not including stock), and 
‘‘(C) the proceeds of such issue are used 
by such issuer during the 5-year period begin-
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ning on the date of issuance for the develop-
ment, production, or sale of products using 
nanotechnology. 
‘‘(2) QUALIFIED
NANOTECHNOLOGY
DEVEL-
OPER.—The term ‘qualified nanotechnology devel-
oper’ means any entity— 
‘‘(A) which is a C corporation or limited li-
ability company organized under the laws of 
any State or of the United States, 
‘‘(B) which is a small business concern (as 
defined in section 3(a) of the Small Business 
Act), and 
‘‘(C) with respect to which a certification 
under subsection (d) is in effect. 
‘‘(3) NANOTECHNOLOGY.—The term ‘nanotech-
nology’ means the science of understanding and ma-
nipulating matter on an atomic or molecular scale, 
generally to create structures, and usually at a size 
smaller than 100 nanometers. 
‘‘(d) CERTIFICATION.— 
‘‘(1) IN GENERAL.—The Secretary, in consulta-
tion with the National Nanotechnology Coordination 
Office, shall certify an entity under this subsection 
if such entity demonstrates by the submission of 
such information as required by the Secretary that 
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not less than 51 percent of its activities relate to the 
development, production, and sale of products using 
nanotechnology. 
‘‘(2) REVOCATION.—The Secretary shall revoke 
the certification of any entity which is certified 
under paragraph (1) if the Secretary determines 
that— 
‘‘(A) the proceeds from any qualified nano-
technology developer stock issued by such entity 
are used during the 5-year period following 
such issue for a purpose other than the develop-
ment, production, or sale of products using 
nanotechnology, or 
‘‘(B) such entity no longer meets the re-
quirements of paragraph (1). 
‘‘(3) SUBMISSION OF INFORMATION.—The Sec-
retary may require any entity certified under para-
graph (1) to provide such information as the Sec-
retary may require in order ensure compliance with 
the purposes of this section. 
‘‘(e) CARRYOVER OF UNUSED CREDIT.— 
‘‘(1) IN GENERAL.—If the credit amount allow-
able under subsection (a) for a taxable year exceeds 
the amount of the limitation under subsection (h) 
for such taxable year, such excess shall be allowed 
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as a credit carryforward for each of the 20 taxable 
years following the unused credit year. 
‘‘(2) RULES.—Rules similar to the rules of sec-
tion 39 shall apply with respect to the credit 
carryforward under paragraph (1). 
‘‘(f) RECAPTURE OF CREDIT.—If— 
‘‘(1) the taxpayer fails to hold qualified nano-
technology developer stock for the 7-year period be-
ginning on the date such stock was purchased by the 
taxpayer, or 
‘‘(2) during such 7-year period, the issuer of 
such stock ceases to be a qualified nanotechnology 
developer, 
then notwithstanding any other provision of this subtitle, 
the tax imposed by this chapter on the taxpayer for the 
taxable year beginning in the calendar year in which such 
cessation occurred shall be increased by the aggregate 
amount of credit allowed under subsection (a) to the tax-
payer with respect to such stock. 
‘‘(g) SPECIAL RULE.—For purposes of this section, 
rules similar to the rules of section 1202(c)(3) shall apply. 
‘‘(h) BASIS ADJUSTMENTS.—For purposes of this 
subtitle, if a credit is allowed under this section for the 
purchase of any stock— 
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‘‘(1) the increase in the basis of such stock 
which would (but for this subsection) result from 
such purchase shall be reduced by the amount of the 
credit so allowed, and 
‘‘(2) the basis of such stock shall be increased 
by the amount of any increase in tax by reason of 
subsection (f).’’. 
(b) CONFORMING AMENDMENT.—Subsection (a) of 
section 1016 of such Code is amended by striking ‘‘and’’ 
at the end of paragraph (36), by striking the period at 
the end of paragraph (37) and inserting ‘‘; and’’, and by 
adding at the end the following new paragraph: 
‘‘(38) to the extent provided in section 54I(h), 
in the case of amounts with respect to which a credit 
has been allowed under section 54I or a recapture 
imposed under section 54I(f).’’. 
(c) CLERICAL AMENDMENT.—The table of subparts 
for part IV is amended by adding at the end the following 
new item: 
‘‘SUBPART J—NANOTECHNOLOGY DEVELOPMENT CREDIT’’. 
(d) EFFECTIVE DATE.—The amendments made by 
this section shall apply to amounts paid after December 
31, 2010. 
SEC. 103. NANOTECHNOLOGY ASSISTANCE. 
(a) DEFINITIONS.—In this section: 
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