SEC. 2. DESIGNATION OF INCOME TAX OVERPAYMENTS TO 
FUND MEDICAL RESEARCH. 
(a) GENERAL RULE.—Subchapter A of chapter 61 of 
the Internal Revenue Code of 1986 (relating to returns 
and records) is amended by adding at the end the fol-
lowing new part: 
‘‘PART IX—DESIGNATION OF INCOME TAX 
OVERPAYMENTS TO FUND MEDICAL RESEARCH 
‘‘Sec. 6097. Designation of income tax overpayments. 
‘‘SEC. 6097. DESIGNATION OF INCOME TAX OVERPAYMENTS. 
‘‘(a) GENERAL RULE.—Every taxpayer who makes a 
return of the tax imposed by subtitle A for any taxable 
year may designate that a specified portion (not less than 
$1) of any overpayment of tax for such taxable year shall 
be used for medical research conducted through the De-
partment of Veterans Affairs. 
‘‘(b) MANNER AND TIME OF DESIGNATION.—Any 
designation under subsection (a) for any taxable year shall 
be made— 
‘‘(1) at the time of filing the return of the tax 
imposed by subtitle A for such taxable year, and 
‘‘(2) in such manner as the Secretary may by 
regulation prescribe, except that such designation 
shall be made either on the first page of the return 
or on the page bearing the taxpayer’s signature.
‘‘(c) TREATMENT OF AMOUNTS DESIGNATED.—For 
purposes of this title, the amount designated by any tax-
payer under subsection (a)— 
‘‘(1) shall be treated as being refunded to such 
taxpayer as of the last date prescribed for filing the 
return of tax imposed by subtitle A (determined 
without regard to extensions) or, if later, the date 
the return is filed, and 
‘‘(2) shall be treated as a contribution made by 
such taxpayer on such date to the United States.’’. 
(b) CLERICAL AMENDMENT.—The table of parts for 
subchapter A of chapter 61 of such Code is amended by 
adding at the end thereof the following new item: 
‘‘PART IX. DESIGNATION OF INCOME TAX OVERPAYMENTS TO FUND MEDICAL 
RESEARCH’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2004. 
SEC. 3. DEPARTMENT OF VETERANS AFFAIRS MEDICAL 
AND PROSTHETIC RESEARCH GIFT FUND. 
(a) IN GENERAL.—Chapter 83 of title 38, United 
States Code, is amended by adding at the end the fol-
lowing new section:
‘‘§ 8306. Department of Veterans Affairs Medical and 
Prosthetic Research Gift Fund 
‘‘(a) There is established in the Treasury of the 
United States an account to be known as the ‘Department 
of Veterans Affairs Medical and Prosthetic Research Gift 
Fund’ (in this section referred to as the ‘Fund’), con-
sisting of such amounts as may be transferred or credited 
to the account under this section. 
‘‘(b) The Secretary of the Treasury shall, from time 
to time, transfer to the Fund the amounts designated 
under section 6097 of the Internal Revenue Code of 1986. 
Amounts that otherwise would be appropriated for the De-
partment of Veterans Affairs may not be offset by the 
amount of such transfers to the Fund. 
‘‘(c) Amounts in the Fund shall be available, as pro-
vided in appropriations Acts, for purposes of medical re-
search conducted through the Veterans Health Adminis-
tration.’’. 
(b) CLERICAL AMENDMENT.—The table of sections 
at the beginning of such chapter is amended by adding 
at the end the following new item: 
‘‘8306. Department of Veterans Affairs Medical and Prosthetic Research Gift 
Fund.’’. 
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