I
107TH CONGRESS
1ST SESSION
H. R. 1504
To amend the Internal Revenue Code of 1986 to allow a credit against
income tax for research related to developing vaccines against widespread
diseases and ensure that such vaccines are affordable and widely distrib-
uted.
IN THE HOUSE OF REPRESENTATIVES
APRIL 4, 2001
Ms. PELOSI (for herself, Ms. DUNN, Mr. RANGEL, Mr. MCDERMOTT, Mrs.
MORELLA, Mrs. CHRISTENSEN, Mr. FOLEY, Mr. LEWIS of Georgia, Mr.
TOWNS, Mr. DEUTSCH, Mr. SERRANO, Ms. WOOLSEY, Mr. JEFFERSON,
Mr. FILNER, Mr. MCNULTY, Ms. ROYBAL-ALLARD, Mr. LANTOS, Mr.
ENGLISH, Mrs. THURMAN, Ms. DELAURO, Ms. MILLENDER-MCDONALD,
and Mr. WYNN) introduced the following bill; which was referred to the
Committee on Ways and Means, and in addition to the Committees on
Energy and Commerce, and International Relations, 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 committee con-
cerned
A BILL
To amend the Internal Revenue Code of 1986 to allow a
credit against income tax for research related to devel-
oping vaccines against widespread diseases and ensure
that such vaccines are affordable and widely distributed.
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 ‘‘Vaccines for the New
Millennium Act of 2001’’.
SEC. 2. CREDIT FOR MEDICAL RESEARCH RELATED TO DE-
VELOPING VACCINES AGAINST WIDESPREAD
DISEASES.
(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) is amended by
adding at the end the following new section:
‘‘SEC. 45E. CREDIT FOR MEDICAL RESEARCH RELATED TO
DEVELOPING 
VACCINES 
AGAINST 
WIDE-
SPREAD DISEASES.
‘‘(a) GENERAL RULE.—For purposes of section 38,
the vaccine research credit determined under this section
for the taxable year is an amount equal to 30 percent of
the qualified vaccine research expenses for the taxable
year.
‘‘(b) QUALIFIED VACCINE RESEARCH EXPENSES.—
For purposes of this section—
‘‘(1) 
QUALIFIED
VACCINE
RESEARCH
EX-
PENSES.—
‘‘(A) IN GENERAL.—Except as otherwise
provided in this paragraph, the term ‘qualified
vaccine research expenses’ means the amounts
which are paid or incurred by the taxpayer dur-
ing the taxable year which would be described
in subsection (b) of section 41 if such sub-
section were applied with the modifications set
forth in subparagraph (B).
‘‘(B) MODIFICATIONS; INCREASED INCEN-
TIVE FOR CONTRACT RESEARCH PAYMENTS.—
For purposes of subparagraph (A), subsection
(b) of section 41 shall be applied—
‘‘(i) by substituting ‘vaccine research’
for ‘qualified research’ each place it ap-
pears in paragraphs (2) and (3) of such
subsection, and
‘‘(ii) by substituting ‘100 percent’ for
‘65 percent’ in paragraph (3)(A) of such
subsection.
‘‘(C) EXCLUSION FOR AMOUNTS FUNDED
BY GRANTS, ETC.—The term ‘qualified vaccine
research expenses’ shall not include any amount
to the extent such amount is funded by any
grant, contract, or otherwise by another person
(or any governmental entity).
‘‘(2) VACCINE RESEARCH.—The term ‘vaccine
research’ means research to develop vaccines and
microbicides for—
‘‘(A) malaria,
‘‘(B) tuberculosis,
‘‘(C) HIV, or
‘‘(D) any infectious disease (of a single eti-
ology) which, according to the World Health
Organization, causes over 1,000,000 human
deaths annually.
‘‘(c) COORDINATION WITH CREDIT FOR INCREASING
RESEARCH EXPENDITURES.—
‘‘(1) IN GENERAL.—Except as provided in para-
graph (2), any qualified vaccine research expenses
for a taxable year to which an election under this
section applies shall not be taken into account for
purposes of determining the credit allowable under
section 41 for such taxable year.
‘‘(2) EXPENSES
INCLUDED
IN
DETERMINING
BASE PERIOD RESEARCH EXPENSES.—Any qualified
vaccine research expenses for any taxable year which
are qualified research expenses (within the meaning
of section 41(b)) shall be taken into account in de-
termining base period research expenses for pur-
poses of applying section 41 to subsequent taxable
years.
‘‘(d) SPECIAL RULES.—
‘‘(1) LIMITATIONS ON FOREIGN TESTING.—No
credit shall be allowed under this section with re-