H. R. 3590—763 
in paragraph (1)(A) taken into account in determining the credit 
under section 48D for the taxable year, if— 
‘‘(A) the amount of the portion of the credit determined 
under such section with respect to such expenses, exceeds 
‘‘(B) the amount allowable as a deduction for such 
taxable year for such 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 
E of part IV of subchapter A of chapter 1 of the Internal Revenue 
Code of 1986 is amended by inserting after the item relating to 
section 48C the following new item: 
‘‘Sec. 48D. Qualifying therapeutic discovery project credit.’’. 
(e) GRANTS FOR QUALIFIED INVESTMENTS IN THERAPEUTIC DIS-
COVERY PROJECTS IN LIEU OF TAX CREDITS.— 
(1) IN GENERAL.—Upon application, the Secretary of the 
Treasury shall, subject to the requirements of this subsection, 
provide a grant to each person who makes a qualified invest-
ment in a qualifying therapeutic discovery project in the amount 
of 50 percent of such investment. No grant shall be made 
under this subsection with respect to any investment unless 
such investment is made during a taxable year beginning in 
2009 or 2010. 
(2) APPLICATION.— 
(A) IN
GENERAL.—At the stated election of the 
applicant, an application for certification under section 
48D(d)(2) of the Internal Revenue Code of 1986 for a credit 
under such section for the taxable year of the applicant 
which begins in 2009 shall be considered to be an applica-
tion for a grant under paragraph (1) for such taxable year. 
(B) TAXABLE YEARS BEGINNING IN 2010.—An application 
for a grant under paragraph (1) for a taxable year beginning 
in 2010 shall be submitted— 
(i) not earlier than the day after the last day 
of such taxable year, and 
(ii) not later than the due date (including exten-
sions) for filing the return of tax for such taxable 
year. 
(C) INFORMATION TO BE SUBMITTED.—An application 
for a grant under paragraph (1) shall include such informa-
tion and be in such form as the Secretary may require 
to state the amount of the credit allowable (but for the 
receipt of a grant under this subsection) under section 
48D for the taxable year for the qualified investment with 
respect to which such application is made. 
(3) TIME FOR PAYMENT OF GRANT.— 
(A) IN GENERAL.—The Secretary of the Treasury shall 
make payment of the amount of any grant under paragraph 
(1) during the 30-day period beginning on the later of— 
(i) the date of the application for such grant, or 
(ii) the date the qualified investment for which 
the grant is being made is made.
H. R. 3590—764 
(B) REGULATIONS.—In the case of investments of an 
ongoing nature, the Secretary shall issue regulations to 
determine the date on which a qualified investment shall 
be deemed to have been made for purposes of this para-
graph. 
(4) QUALIFIED
INVESTMENT.—For purposes of this sub-
section, the term ‘‘qualified investment’’ means a qualified 
investment that is certified under section 48D(d) of the Internal 
Revenue Code of 1986 for purposes of the credit under such 
section 48D. 
(5) APPLICATION OF CERTAIN RULES.— 
(A) IN GENERAL.—In making grants under this sub-
section, the Secretary of the Treasury shall apply rules 
similar to the rules of section 50 of the Internal Revenue 
Code of 1986. In applying such rules, any increase in 
tax under chapter 1 of such Code by reason of an invest-
ment ceasing to be a qualified investment shall be imposed 
on the person to whom the grant was made. 
(B) SPECIAL RULES.— 
(i) RECAPTURE OF EXCESSIVE GRANT AMOUNTS.— 
If the amount of a grant made under this subsection 
exceeds the amount allowable as a grant under this 
subsection, such excess shall be recaptured under 
subparagraph (A) as if the investment to which such 
excess portion of the grant relates had ceased to be 
a qualified investment immediately after such grant 
was made. 
(ii) GRANT INFORMATION NOT TREATED AS RETURN 
INFORMATION.—In no event shall the amount of a grant 
made under paragraph (1), the identity of the person 
to whom such grant was made, or a description of 
the investment with respect to which such grant was 
made be treated as return information for purposes 
of section 6103 of the Internal Revenue Code of 1986. 
(6) EXCEPTION
FOR
CERTAIN
NON-TAXPAYERS.—The Sec-
retary of the Treasury shall not make any grant under this 
subsection to— 
(A) any Federal, State, or local government (or any 
political subdivision, agency, or instrumentality thereof), 
(B) any organization described in section 501(c) of the 
Internal Revenue Code of 1986 and exempt from tax under 
section 501(a) of such Code, 
(C) any entity referred to in paragraph (4) of section 
54(j) of such Code, or 
(D) any partnership or other pass-thru entity any 
partner (or other holder of an equity or profits interest) 
of which is described in subparagraph (A), (B) or (C). 
In the case of a partnership or other pass-thru entity described 
in subparagraph (D), partners and other holders of any equity 
or profits interest shall provide to such partnership or entity 
such information as the Secretary of the Treasury may require 
to carry out the purposes of this paragraph. 
(7) SECRETARY.—Any reference in this subsection to the 
Secretary of the Treasury shall be treated as including the 
Secretary’s delegate. 
(8) OTHER TERMS.—Any term used in this subsection which 
is also used in section 48D of the Internal Revenue Code
H. R. 3590—765 
of 1986 shall have the same meaning for purposes of this 
subsection as when used in such section. 
(9) DENIAL OF DOUBLE BENEFIT.—No credit shall be allowed 
under section 46(6) of the Internal Revenue Code of 1986 by 
reason of section 48D of such Code for any investment for 
which a grant is awarded under this subsection. 
(10) APPROPRIATIONS.—There is hereby appropriated to the 
Secretary of the Treasury such sums as may be necessary 
to carry out this subsection. 
(11) TERMINATION.—The Secretary of the Treasury shall 
not make any grant to any person under this subsection unless 
the application of such person for such grant is received before 
January 1, 2013. 
(12) PROTECTING
MIDDLE
CLASS
FAMILIES
FROM
TAX 
INCREASES.—It is the sense of the Senate that the Senate 
should reject any procedural maneuver that would raise taxes 
on middle class families, such as a motion to commit the 
pending legislation to the Committee on Finance, which is 
designed to kill legislation that provides tax cuts for American 
workers and families, including the affordability tax credit and 
the small business tax credit. 
(f) EFFECTIVE DATE.—The amendments made by subsections 
(a) through (d) of this section shall apply to amounts paid or 
incurred after December 31, 2008, in taxable years beginning after 
such date. 
TITLE 
X—STRENGTHENING 
QUALITY, 
AFFORDABLE HEALTH CARE FOR ALL 
AMERICANS 
Subtitle A—Provisions Relating to Title I 
SEC. 10101. AMENDMENTS TO SUBTITLE A. 
(a) Section 2711 of the Public Health Service Act, as added 
by section 1001(5) of this Act, is amended to read as follows: 
‘‘SEC. 2711. NO LIFETIME OR ANNUAL LIMITS. 
‘‘(a) PROHIBITION.— 
‘‘(1) IN GENERAL.—A group health plan and a health insur-
ance issuer offering group or individual health insurance cov-
erage may not establish— 
‘‘(A) lifetime limits on the dollar value of benefits for 
any participant or beneficiary; or 
‘‘(B) except as provided in paragraph (2), annual limits 
on the dollar value of benefits for any participant or bene-
ficiary. 
‘‘(2) ANNUAL LIMITS PRIOR TO 2014.—With respect to plan 
years beginning prior to January 1, 2014, a group health plan 
and a health insurance issuer offering group or individual 
health insurance coverage may only establish a restricted 
annual limit on the dollar value of benefits for any participant 
or beneficiary with respect to the scope of benefits that are 
essential health benefits under section 1302(b) of the Patient
H. R. 3590—766 
Protection and Affordable Care Act, as determined by the Sec-
retary. In defining the term ‘restricted annual limit’ for pur-
poses of the preceding sentence, the Secretary shall ensure 
that access to needed services is made available with a minimal 
impact on premiums. 
‘‘(b) PER BENEFICIARY LIMITS.—Subsection (a) shall not be con-
strued to prevent a group health plan or health insurance coverage 
from placing annual or lifetime per beneficiary limits on specific 
covered benefits that are not essential health benefits under section 
1302(b) of the Patient Protection and Affordable Care Act, to the 
extent that such limits are otherwise permitted under Federal 
or State law.’’. 
(b) Section 2715(a) of the Public Health Service Act, as added 
by section 1001(5) of this Act, is amended by striking ‘‘and providing 
to enrollees’’ and inserting ‘‘and providing to applicants, enrollees, 
and policyholders or certificate holders’’. 
(c) Subpart II of part A of title XXVII of the Public Health 
Service Act, as added by section 1001(5), is amended by inserting 
after section 2715, the following: 
‘‘SEC. 2715A. PROVISION OF ADDITIONAL INFORMATION. 
‘‘A group health plan and a health insurance issuer offering 
group or individual health insurance coverage shall comply with 
the provisions of section 1311(e)(3) of the Patient Protection and 
Affordable Care Act, except that a plan or coverage that is not 
offered through an Exchange shall only be required to submit 
the information required to the Secretary and the State insurance 
commissioner, and make such information available to the public.’’. 
(d) Section 2716 of the Public Health Service Act, as added 
by section 1001(5) of this Act, is amended to read as follows: 
‘‘SEC. 2716. PROHIBITION ON DISCRIMINATION IN FAVOR OF HIGHLY 
COMPENSATED INDIVIDUALS. 
‘‘(a) IN GENERAL.—A group health plan (other than a self- 
insured plan) shall satisfy the requirements of section 105(h)(2) 
of the Internal Revenue Code of 1986 (relating to prohibition on 
discrimination in favor of highly compensated individuals). 
‘‘(b) RULES AND DEFINITIONS.—For purposes of this section— 
‘‘(1) CERTAIN RULES TO APPLY.—Rules similar to the rules 
contained in paragraphs (3), (4), and (8) of section 105(h) of 
such Code shall apply. 
‘‘(2) HIGHLY COMPENSATED INDIVIDUAL.—The term ‘highly 
compensated individual’ has the meaning given such term by 
section 105(h)(5) of such Code.’’. 
(e) Section 2717 of the Public Health Service Act, as added 
by section 1001(5) of this Act, is amended— 
(1) by redesignating subsections (c) and (d) as subsections 
(d) and (e), respectively; and 
(2) by inserting after subsection (b), the following: 
‘‘(c) PROTECTION OF SECOND AMENDMENT GUN RIGHTS.— 
‘‘(1) WELLNESS AND PREVENTION PROGRAMS.—A wellness 
and health promotion activity implemented under subsection 
(a)(1)(D) may not require the disclosure or collection of any 
information relating to— 
‘‘(A) the presence or storage of a lawfully-possessed 
firearm or ammunition in the residence or on the property 
of an individual; or