I 
118TH CONGRESS 
1ST SESSION H. R. 5206 
To amend the Internal Revenue Code of 1986 to make a portion of research 
credit refundable for certain small businesses engaging in specified med-
ical research. 
IN THE HOUSE OF REPRESENTATIVES 
AUGUST 15, 2023 
Mr. BUCHANAN (for himself, Mr. FITZPATRICK, and Mr. KELLY of Pennsyl-
vania) 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 make 
a portion of research credit refundable for certain small 
businesses engaging in specified medical research. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. REFUNDABLE PORTION OF RESEARCH CREDIT 
FOR SMALL BUSINESSES ENGAGING IN SPEC-
IFIED MEDICAL RESEARCH. 
(a) IN GENERAL.—Section 41 of the Internal Rev-
enue Code of 1986 is amended by adding at the end the 
following new subsection: 
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‘‘(i) REFUNDABLE
PORTION
FOR
SMALL
BUSI-
NESSES ENGAGING IN SPECIFIED MEDICAL RESEARCH.— 
‘‘(1) IN GENERAL.—At the election of a medical 
research small business, the portion of the credit de-
termined under this section for the taxable year 
which is properly allocable to specified medical re-
search shall be treated (other than for purposes of 
section 280C) as a credit allowed under subpart C 
(and not this subpart). 
‘‘(2) MEDICAL RESEARCH SMALL BUSINESS.— 
For purposes of this subsection, the term ‘medical 
research small business’ means any domestic C cor-
poration— 
‘‘(A) which conducts any specified medical 
research during the taxable year, and 
‘‘(B) the gross receipts of which (deter-
mined under the rules of subsection (c)) for the 
taxable year do not exceed $1,000,000. 
‘‘(3) SPECIFIED
MEDICAL
RESEARCH.—For 
purposes of this subsection, the term ‘specified med-
ical research’ means any qualified research with re-
spect to qualified countermeasures (as defined in 
section 319F–1(a)(2) of the Public Health Service 
Act (42 U.S.C. 247d–6a(a)(2))). 
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‘‘(4) ELECTION.—Any election under this sub-
section for any taxable year— 
‘‘(A) shall specify the amount of the credit 
to which such election applies, 
‘‘(B) shall be made on or before the due 
date (including extensions) of the return of tax 
for the taxable year, 
‘‘(C) may not be made for any taxable year 
with respect to any portion of the credit deter-
mined under this section with respect to which 
an election is made under subsection (h), and 
‘‘(D) may be revoked only with the consent 
of the Secretary. 
‘‘(5) REGULATIONS.—The Secretary shall pre-
scribe such regulations for purposes of this sub-
section as may be necessary or appropriate for de-
termining proper allocation to specified medical re-
search of the portion of any credit allowed to a tax-
payer for a taxable year under this section.’’. 
(b) CONFORMING AMENDMENT.—Section 1324(b) of 
title 31, United States Code, is amended by inserting 
‘‘41(i),’’ after ‘‘6428,’’. 
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(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2022. 
Æ 
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