I 
114TH CONGRESS 
2D SESSION 
H. R. 4865 
To ensure the development and responsible stewardship of nanotechnology. 
IN THE HOUSE OF REPRESENTATIVES 
MARCH 23, 2016 
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 Nanomanufactur-
ing Investment Partnership, in partnership with such pri-
vate 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 Nanomanufactur-
ing Investment Partnership may provide funding through 
direct investment in nanomanufacturing firms, contracts, 
loans or loan guarantees, unsecured subordinated debt, or 
any other mechanism designed to advance nanomanufac-
turing 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 nanomanufac-
turing and finance appointed by the President 
from among representatives of government, in-
dustry, and academia, whose votes shall collec-
tively 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 K—Nanotechnology Development Credit 
‘‘Sec. 54BB. Credit for purchase of nanotechnology developer stock. 
‘‘SEC. 54BB. CREDIT FOR PURCHASE OF NANOTECHNOLO-
GY 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. 
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‘‘(2) APPLICABLE PERCENTAGE.—For purposes 
of subsection (a), the applicable percentage is— 
‘‘(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 
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purchase of qualified nanotechnology developer stock 
which is in excess of $10,000,000. 
‘‘(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 
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‘‘(C) the proceeds of such issue are used 
by such issuer during the 5-year period begin-
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 
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if such entity demonstrates by the submission of 
such information as required by the Secretary that 
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 
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the amount of the limitation under subsection (h) 
for such taxable year, such excess shall be allowed 
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 carry-
forward 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. 
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‘‘(h) BASIS ADJUSTMENTS.—For purposes of this 
subtitle, if a credit is allowed under this section for the 
purchase of any stock— 
‘‘(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 
54BB(h), in the case of amounts with respect to 
which a credit has been allowed under section 54BB 
or a recapture imposed under section 54BB(f).’’. 
(c) CLERICAL AMENDMENT.—The table of subparts 
for part IV is amended by adding at the end the following 
new item: 
‘‘SUBPART K. NANOTECHNOLOGY DEVELOPMENT CREDIT’’. 
(d) EFFECTIVE DATE.—The amendments made by 
this section shall apply to amounts paid after December 
31, 2015. 
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SEC. 103. NANOTECHNOLOGY ASSISTANCE. 
(a) DEFINITIONS.—In this section: 
(1) COMMERCIALIZATION.—The term ‘‘commer-
cialization’’ means the process of converting nano-
technology research into products and processes that 
are used in the marketplace. 
(2) 
DEGREE-GRANTING
INSTITUTION.—The 
term ‘‘degree-granting institution’’ means an institu-
tion of higher education, as defined in section 101 
of the Higher Education Act of 1965 (20 U.S.C. 
1001), that awards an associate or baccalaureate de-
gree. 
(3) INCUBATOR.—The term ‘‘incubator’’ means 
an entity affiliated with or housed in a degree-grant-
ing institution that provides space and coordinated 
and specialized services to entrepreneurial businesses 
that work in the field of nanotechnology commer-
cialization and that meets selected criteria during 
the businesses’ startup phase, including providing 
services such as shared office space and services, ac-
cess to equipment, access to telecommunications and 
technology services, flexible leases, specialized man-
agement assistance, access to financing, and other 
coordinated business or technical support services. 
(4) NANOTECHNOLOGY.—The term ‘‘nanotech-
nology’’ means the science of understanding and ma-
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nipulating matter on an atomic or molecular scale, 
generally to create structures, and usually at a size 
smaller than 100 nanometers. 
(5) SECRETARY.—The term ‘‘Secretary’’ means 
the Secretary of Commerce. 
(b) GRANTS AUTHORIZED.— 
(1) IN GENERAL.—The Secretary is authorized 
to establish within the Technology Administration of 
the Department of Commerce a grant program to 
support the establishment and development of incu-
bators. 
(2) 
ALLOCATION
OF
FUNDS.—From 
the 
amount appropriated pursuant to the authorization 
of appropriations in subsection (e) for a fiscal year, 
the Secretary— 
(A) shall use 80 percent of such amount 
to— 
(i) make awards, on a competitive 
basis, in amounts of up to $2,500,000, to 
help acquire or renovate space for incuba-
tors; and 
(ii) make awards, on a competitive 
basis, in amounts of $50,000 to $150,000, 
for— 
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(I) developing curricula related to 
nanotechnology; 
(II) providing services for com-
mercialization, 
including 
preparing 
providing services to appropriate busi-
nesses including corporate charters, 
partnership agreements, and basic 
contracts, assistance with patents, 
trademarks, and copyrights, and tech-
nology acquisition services; or 
(III) providing programming for 
entrepreneurs working in nanotechnol-
ogy housed in an incubator; 
(B) shall reserve 10 percent of the amount 
to make awards, on a competitive basis, in 
amounts of $50,000 to $150,000, for feasibility 
studies for determining the need for or siting of 
incubators; and 
(C) shall reserve 10 percent for research 
regarding best practices for incubator pro-
grams, including the development of a bench-
marking system based on uniform measures, 
and for dissemination of information regarding 
such practices. 
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(3) CONTRACTS.—The Secretary is authorized 
to contract with organizations with expertise in incu-
bation practices for the purposes of carrying out 
paragraph (2)(C). 
(4) USES OF FUNDS.—Funds awarded under 
paragraph (2)(A)(ii) may be used for— 
(A) curriculum, training, or technical as-
sistance related to nanotechnology developed by 
academic faculty with participation from entre-
preneurship experts; 
(B) programming that contributes to a co-
ordinated set of business assistance tools, such 
as developing management teams, providing 
workforce development, forming strategic alli-
ances, developing capital formation networks, 
and developing customized plans for commer-
cialization; and 
(C) hiring staff to coordinate the activities 
described in subparagraph (A) or (B) or for 
curriculum development. 
(5) RECIPIENTS.—The Secretary shall make an 
award— 
(A) described in paragraph (2)(A) to a 
nonprofit entity that has a strong affiliation 
with a degree-granting institution and manages 
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or provides technical assistance to the degree- 
granting institution’s affiliated incubator, or if 
no nonprofit entity manages or provides tech-
nical assistance to the incubator, to the degree- 
granting institution managing the incubator; 
and 
(B) described in paragraph (2)(B) to a de-
gree-granting institution. 
(6) APPLICATIONS.—Each entity desiring as-
sistance under this section shall submit an applica-
tion to the Secretary at such time, in such manner, 
and accompanied by such information as the Sec-
retary may require. 
(7) SELECTION.— 
(A) PRIORITY.—The Secretary shall give 
priority to funding applications under this sub-
section for activities that— 
(i) will be carried out at a facility that 
is included in the Centers and Networks of 
Excellence of the research and development 
program known as the National Nanotech-
nology Initiative; 
(ii) provide strong educational oppor-
tunities to students in fields related to 
nanotechnology and commercialization; and 
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(iii) require significant collaboration 
between businesses and academia. 
(B) CONSIDERATION.—The Secretary may 
give consideration to funding applications under 
this subsection that support— 
(i) the building of new incubators; 
(ii) incubators that work with faculty 
entrepreneurs or university-based research; 
(iii) incubators that are located in 
areas with an established venture capital 
industry and other industry support, in-
cluding leadership and legal support, for 
commercialization; or 
(iv) incubators that have secured ad-
ditional private funding. 
(c) NANOTECHNOLOGY STARTUP ADVISORY COUN-
CIL.— 
(1) ESTABLISHMENT.—The Secretary shall es-
tablish a Nanotechnology Startup Advisory Council 
composed of industry leaders, business and mar-
keting professionals, venture capitalists, attorneys, 
and nanotechnology researchers. 
(2) PURPOSE.—The purpose of the Nanotech-
nology Startup Advisory Council is to ensure that 
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emerging nanotechnology companies create a sound 
foundation for new business. 
(d) REPORT.—Not later than September 30 of the 
third fiscal year during which assistance is provided under 
this section, the Secretary shall prepare and submit to 
Congress a report that— 
(1) describes the most effective or innovative 
additions to curricula related to nanotechnology that 
were developed with such assistance; 
(2) contains a comparison of the success of 
nanotechnology companies developed in incubators 
that received such assistance with the success of 
other nanotechnology companies; 
(3) describes any factors leading to success of 
companies that were developed in incubators; 
(4) recommends the best role for degree-grant-
ing institutions in commercialization; and 
(5) contains a comparison of academic-affiliated 
incubators of specific missions and ages that re-
ceived assistance under this section with other incu-
bators with similar missions and ages. 
(e) AUTHORIZATION
OF APPROPRIATIONS.—There 
are authorized to be appropriated to carry out this section 
$25,000,000 for each of the fiscal years 2016, 2017, and 
2018. 
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TITLE II—RESEARCH AND 
DEVELOPMENT DIRECTIONS 
SEC. 201. NANOSCALE SCIENCE AND ENGINEERING CEN-
TER. 
Section 9 of the 21st Century Nanotechnology Re-
search and Development Act (15 U.S.C. 7508) is amend-
ed— 
(1) by redesignating subsection (c) as sub-
section (d); and 
(2) by inserting after subsection (b) the fol-
lowing new subsection: 
‘‘(c) NANOSCALE SCIENCE AND ENGINEERING CEN-
TER.— 
‘‘(1) ESTABLISHMENT.—The National Science 
Foundation shall provide for the establishment, on a 
merit reviewed and competitive basis, of a center for 
the development of computer aided design tools for 
nanotechnology applications. 
‘‘(2) AUTHORIZATION
OF
APPROPRIATIONS.— 
There are authorized to be appropriated to the Na-
tional Science Foundation for carrying out this sub-
section $10,000,000.’’. 
SEC. 202. FEDERAL PROGRAMS. 
The 21st Century Nanotechnology Research and De-
velopment Act (15 U.S.C. 7501 et seq.) is amended— 
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(1) by redesignating sections 9 and 10 as sec-
tions 12 and 13, respectively; 
(2) in section 8, by adding at the end the fol-
lowing new subsection: 
‘‘(c) RESEARCH PROGRAM.— 
‘‘(1) ESTABLISHMENT.—The Secretary of En-
ergy shall provide for the establishment, on a merit 
reviewed and competitive basis, of a grant program 
for nanotechnology research to address the need for 
clean, cheap, renewable energy. 
‘‘(2) AUTHORIZATION
OF
APPROPRIATIONS.— 
There are authorized to be appropriated to the Sec-
retary of Energy for carrying out this subsection 
$30,000,000 for each fiscal year.’’; and 
(3) by inserting after section 8 the following 
new sections: 
‘‘SEC. 9. ENVIRONMENTAL PROTECTION AGENCY PRO-
GRAMS. 
‘‘(a) ESTABLISHMENT.—The Administrator of the 
Environmental Protection Agency shall provide for the es-
tablishment, on a merit reviewed and competitive basis, 
of a grant program for nanotechnology research to address 
technologies for the remediation of pollution and other en-
vironmental protection technologies. 
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‘‘(b) AUTHORIZATION OF APPROPRIATIONS.—There 
are authorized to be appropriated to the Administrator of 
the Environmental Protection Agency for carrying out this 
section $30,000,000 for each fiscal year. 
‘‘SEC. 10. DEPARTMENT OF HOMELAND SECURITY PRO-
GRAMS. 
‘‘(a) ESTABLISHMENT.—The Secretary of Homeland 
Security shall provide for the establishment, on a merit 
reviewed and competitive basis, of a grant program for 
nanotechnology research to address the need for sensors 
and other materials related to homeland security needs. 
‘‘(b) AUTHORIZATION OF APPROPRIATIONS.—There 
are authorized to be appropriated to the Secretary of 
Homeland Security for carrying out this section 
$30,000,000 for each fiscal year. 
‘‘SEC. 11. DEPARTMENT OF HEALTH AND HUMAN SERVICES 
PROGRAMS. 
‘‘(a) ESTABLISHMENT.—The Secretary of Health 
and Human Services shall provide for the establishment, 
on a merit reviewed and competitive basis, of a grant pro-
gram for nanotechnology research to address the health 
related applications of nanotechnology. 
‘‘(b) AUTHORIZATION OF APPROPRIATIONS.—There 
are authorized to be appropriated to the Secretary of 
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Health and Human Services for carrying out this section 
$30,000,000 for each fiscal year.’’. 
TITLE 
III—ENVIRONMENTAL 
NANOTECHNOLOGY APPLICA-
TIONS 
SEC. 301. NANOTECHNOLOGY RESEARCH STRATEGY. 
Not later than 1 year after the date of enactment 
of this Act, the Director of the National Nanotechnology 
Coordination Office shall, after consultation with appro-
priate Federal agencies and industry, transmit to the Con-
gress a report containing a nanotechnology research strat-
egy that establishes priorities for the Federal Government 
and industry that will ensure the development and respon-
sible stewardship of nanotechnology. The report shall in-
clude recommendations regarding the funding levels the 
Director anticipates the agencies charged with imple-
menting this research strategy will require. 
TITLE IV—EDUCATION 
SEC. 401. CREDIT FOR NANOTECHNOLOGY EDUCATION AND 
TRAINING PROGRAM EXPENSES. 
(a) IN GENERAL.—Subpart B of part IV of sub-
chapter A of chapter 1 of the Internal Revenue Code of 
1986 is amended by adding at the end the following: 
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‘‘SEC. 30E. NANOTECHNOLOGY EDUCATION AND TRAINING 
PROGRAM EXPENSES. 
‘‘(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 50 percent of 
nanotechnology education and training program ex-
penses paid or incurred by the taxpayer for the ben-
efit of— 
‘‘(A) in the case of a taxpayer engaged in 
a trade or business, an employee of the tax-
payer, or 
‘‘(B) in the case of a taxpayer who is an 
individual not so engaged, such individual. 
‘‘(2) COORDINATION OF CREDITS.—Credit shall 
be allowable to the employer with respect to an em-
ployee only to the extent that the employee assigns 
some or all of the limitation applicable to such em-
ployee under subsection (b) to such employer. 
‘‘(b) LIMITATIONS.— 
‘‘(1) IN GENERAL.—The amount of expenses 
with respect to any individual which may be taken 
into account under subsection (a) for the taxable 
year shall not exceed $4,000. 
‘‘(2) INCREASE IN CREDIT AMOUNT FOR PAR-
TICIPATION IN CERTAIN PROGRAMS AND FOR CER-
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TAIN INDIVIDUALS.—Paragraph (1) shall be applied 
by substituting ‘$5,000’ for ‘$4,000’ in the case of 
expenses— 
‘‘(A) with respect to a program operated— 
‘‘(i) in an empowerment zone or en-
terprise community designated under part 
I of subchapter U or a renewal community 
designated under part I of subchapter X, 
‘‘(ii) in a school district in which at 
least 50 percent of the students attending 
schools in such district are eligible for free 
or reduced-cost lunches under the school 
lunch program established under the Rich-
ard B. Russell National School Lunch Act, 
‘‘(iii) in an area designated as a dis-
aster area by the Secretary of Agriculture 
under section 321 of the Consolidated 
Farm and Rural Development Act or by 
the President under the Robert T. Stafford 
Disaster Relief and Emergency Assistance 
Act in the taxable year or the 4 preceding 
taxable years, 
‘‘(iv) in a rural enterprise community 
designated under section 766 of the Agri-
culture, Rural Development, Food and 
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Drug Administration, and Related Agen-
cies Appropriations Act, 1999 (112 Stat. 
2681–37), 
‘‘(v) in an area designated by the Sec-
retary of Agriculture as a Rural Economic 
Area Partnership Zone, 
‘‘(vi) in an area over which an Indian 
tribal government (as defined in section 
7701(a)(40)) has jurisdiction, or 
‘‘(vii) by an employer who has 200 or 
fewer employees for each business day in 
each of 20 or more calendar weeks in the 
current or preceding calendar year, or 
‘‘(B) in the case of an individual with a 
disability. 
‘‘(c) NANOTECHNOLOGY EDUCATION AND TRAINING 
PROGRAM EXPENSES.—For purposes of this section— 
‘‘(1) IN GENERAL.—The term ‘nanotechnology 
education and training program expenses’ means ex-
penses paid or incurred by reason of the participa-
tion of the taxpayer (or any employee of the tax-
payer) in any nanotechnology education and training 
program. Such expenses shall include expenses paid 
in connection with— 
‘‘(A) course work, 
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‘‘(B) certification testing, 
‘‘(C) programs carried out under the Act 
of August 16, 1937 (50 Stat. 664, chapter 663; 
29 U.S.C. 50 et seq.), which are registered by 
the Department of Labor, and 
‘‘(D) other expenses that are essential to 
assessing skill acquisition. 
‘‘(2) 
NANOTECHNOLOGY
EDUCATION
AND 
TRAINING
PROGRAM.—The term ‘nanotechnology 
education and training program’ means a training 
program in nanotechnology workplace disciplines or 
other skill sets which is provided in the United 
States by an accredited college, university, private 
career school, postsecondary educational institution, 
a commercial nanotechnology provider, or an em-
ployer-owned nanotechnology training organization. 
‘‘(3) COMMERCIAL
NANOTECHNOLOGY
TRAIN-
ING PROVIDER.—The term ‘commercial nanotechnol-
ogy training provider’ means a private sector organi-
zation providing a nanotechnology education and 
training program. 
‘‘(4) 
EMPLOYER-OWNED
NANOTECHNOLOGY 
TRAINING
ORGANIZATION.—The term ‘employer- 
owned nanotechnology training organization’ means 
a private sector organization that provides nanotech-
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