‘‘(i) a Federal, State, or local govern-
ment entity, or any political subdivision, 
agency, or instrumentality thereof, and 
‘‘(ii) an organization described in sec-
tion 501(c)(3) and exempt from tax under 
section 501(a). 
‘‘(B) ELIGIBLE PROJECT PARTNER.—The 
term ‘eligible project partner’ means any person 
who— 
‘‘(i) is identified in the application for 
allocation of credit under this section as a 
project partner, and 
‘‘(ii) participates in, or provides fund-
ing for, the research with respect to which 
limitation was allocated by the Secretary 
under subsection (b). 
‘‘(3) SPECIAL RULES.— 
‘‘(A) IN GENERAL.—In the case of a credit 
under subsection (a) which is determined at the 
partnership level— 
‘‘(i) for purposes of paragraph (1)(A), 
a tax-exempt entity shall be treated as the 
taxpayer with respect to such entity’s dis-
tributive share of such credit, and 
VerDate Sep 11 2014 
01:49 Mar 31, 2022
Jkt 029200
PO 00000
Frm 00005
Fmt 6652
Sfmt 6201
E:\BILLS\H7279.IH
H7279
kjohnson on DSK79L0C42PROD with BILLS
‘‘(ii) the term ‘eligible project partner’ 
shall include any partner of the partner-
ship. 
‘‘(B) TAXABLE
YEAR
IN
WHICH
CREDIT 
TAKEN
INTO
ACCOUNT.—In the case of any 
credit (or portion thereof) with respect to which 
an election is made under paragraph (1), such 
credit shall be taken into account in the first 
taxable year of the eligible project partner end-
ing with, or after, the tax-exempt entity’s tax-
able year with respect to which the credit was 
determined. 
‘‘(d) COORDINATION WITH CREDIT FOR INCREASING 
RESEARCH EXPENDITURES.— 
‘‘(1) IN GENERAL.—Except as provided in para-
graph (2), any expenses taken into account under 
this section shall not be taken into account for pur-
poses of determining the credit allowable under sec-
tion 41 for such taxable year. 
‘‘(2) EXPENSES
INCLUDED
IN
DETERMINING 
BASE PERIOD RESEARCH EXPENSES.—Any expenses 
taken into account under this section which are 
qualified research expenses (within the meaning of 
section 41(b)) shall be taken into account in deter-
VerDate Sep 11 2014 
01:49 Mar 31, 2022
Jkt 029200
PO 00000
Frm 00006
Fmt 6652
Sfmt 6201
E:\BILLS\H7279.IH
H7279
kjohnson on DSK79L0C42PROD with BILLS
mining base period research expenses for purposes of 
applying section 41 to subsequent taxable years. 
‘‘(e) TERMINATION.—No credit shall be allowed 
under this section for any taxable year beginning after De-
cember 31, 2032.’’. 
(b) DEDUCTION DISALLOWED.—Section 280C of 
such Code is amended by adding at the end the following 
new subsection: 
‘‘(i) CREDIT
FOR CERTAIN TRANSLATIONAL RE-
SEARCH.—No deduction shall be allowed for that portion 
of the expenses taken into account under section 45U oth-
erwise allowable as a deduction for the taxable year which 
is equal to the amount of the credit determined for such 
taxable year under such section.’’. 
(c) CREDIT MADE PART OF GENERAL BUSINESS 
CREDIT.—Subsection (b) of section 38 of the Internal 
Revenue Code of 1986 is amended by striking ‘‘plus’’ at 
the end of paragraph (32), by striking the period at the 
end of paragraph (33) and inserting ‘‘, plus’’, and by add-
ing at the end the following new paragraph: 
‘‘(34) the credit determined under section 
45U.’’. 
(d) CLERICAL AMENDMENT.—The table of sections 
for subpart D of part IV of subchapter A of chapter 1 
VerDate Sep 11 2014 
01:49 Mar 31, 2022
Jkt 029200
PO 00000
Frm 00007
Fmt 6652
Sfmt 6201
E:\BILLS\H7279.IH
H7279
kjohnson on DSK79L0C42PROD with BILLS
of such Code is amended by adding at the end the fol-
lowing new item: 
‘‘Sec. 45U. Expenses for certain translational research.’’. 
(e) EFFECTIVE DATE.—The amendments made by 
this subsection shall take effect on the date of the enact-
ment of this Act. 
Æ 
VerDate Sep 11 2014 
01:49 Mar 31, 2022
Jkt 029200
PO 00000
Frm 00008
Fmt 6652
Sfmt 6301
E:\BILLS\H7279.IH
H7279
kjohnson on DSK79L0C42PROD with BILLS