I 
111TH CONGRESS 
1ST SESSION H. R. 3156 
To amend the Internal Revenue Code of 1986 to provide a credit against 
tax for expenses paid or incurred in non-clinical research for neglected 
diseases. 
IN THE HOUSE OF REPRESENTATIVES 
JULY 9, 2009 
Mr. PAYNE (for himself, Mr. LEWIS of Georgia, Mr. BRADY of Texas, and 
Mr. MEEK of Florida) 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 provide 
a credit against tax for expenses paid or incurred in 
non-clinical research for neglected diseases. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. CREDIT FOR NON-CLINICAL TESTING EX-
PENSES FOR NEGLECTED DISEASE TREAT-
MENTS. 
(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: 
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‘‘SEC. 45R. NON-CLINICAL TESTING EXPENSES FOR NE-
GLECTED DISEASE TREATMENTS. 
‘‘(a) IN GENERAL.—For purposes of section 38, the 
credit determined under this section for the taxable year 
is an amount equal to 50 percent of the qualified non- 
clinical research expenses for the taxable year. 
‘‘(b) QUALIFIED
NON-CLINICAL
RESEARCH
EX-
PENSES.— 
‘‘(1) IN GENERAL.—For purposes of this sec-
tion, the term ‘qualified non-clinical research ex-
penses’ means the amounts which are paid or in-
curred by the taxpayer during the taxable year 
which would be described in subsection (b) of section 
41 if such subsection were applied with the modifica-
tions set forth in paragraph (2). 
‘‘(2) MODIFICATIONS.—For purposes of para-
graph (1), subsection (b) of section 41 shall be ap-
plied by substituting ‘non-clinical research’ for 
‘qualified research’ each place it appears in para-
graphs (2) and (3) of such subsection. 
‘‘(3) DONATION OF RIGHTS TO TREATMENT RE-
QUIRED.—No credit shall be allowed under this sec-
tion with respect to qualified non-clinical research 
expenses for a taxable year unless— 
‘‘(A) during such taxable year, or in a pre-
vious taxable year, the taxpayer has made a 
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charitable contribution of a license for the 
treatment with respect to which such qualified 
non-clinical research expenses were paid or in-
curred and either— 
‘‘(i) the charitable contribution has 
the same meaning as defined in section 
170(c) and such charitable contribution is 
made to a charitable organization where 
the charitable organization licensee re-
searches, develops, or administers treat-
ments for neglected conditions or diseases, 
or 
‘‘(ii) the charitable contribution is 
made to a foreign government or any sub-
division or organization owned by the fore-
going, but only if the contribution is made 
for exclusively public purposes, 
‘‘(B) the only commercial rights retained 
by the taxpayer with respect to such treatment 
are for an indication which is not a neglected 
condition or disease, and 
‘‘(C) no deduction has been allowed under 
any provision of this title with respect to such 
contribution. 
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‘‘(O) Dracunculiasis. 
‘‘(P) Cholera. 
‘‘(Q) Buruli Ulcer. 
‘‘(R) Any other infectious disease for which 
there is no significant market in developed na-
tions and disproportionately affects poor and 
marginalized populations as determined and 
designated by regulation by the Secretary of the 
Treasury in consultation with the Secretary of 
Health and Human Services. 
‘‘(3) CERTAIN
RULES
MADE
APPLICABLE.— 
Rules similar to the rules of paragraphs (1) and (2) 
of section 41(f), paragraph (4) of section 41(d), and 
subsections (b)(1)(C) and (c) of section 45C shall 
apply for purposes of this section. 
‘‘(4) TREATMENT AS TRADE OR BUSINESS EX-
PENSE.—For purposes of this section and section 
174 whether a qualified non-clinical research ex-
pense (determined after the application of this para-
graph) is paid or incurred in connection with the 
taxpayer’s trade or business shall be determined 
without regard to any contribution of licensing 
rights described in subsection (b)(3). 
‘‘(5) EXPENSES FOR WHICH CREDITS ARE AL-
LOWABLE.—For purposes of this section, the limita-
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tions under section 280C are not applicable for pur-
poses of determining whether an expense is deduct-
ible or chargeable to a capital account.’’. 
(b) CREDIT TO BE PART OF GENERAL BUSINESS 
CREDIT.—Subsection (b) of section 38 of such Code (re-
lating to current year business credit) is amended by strik-
ing ‘‘plus’’ at the end of paragraph (34), by striking the 
period at the end of paragraph (35) and inserting ‘‘, plus’’, 
and by adding at the end the following new paragraph: 
‘‘(36) the neglected disease credit determined 
under section 45R.’’. 
(c) CLERICAL AMENDMENT.—The table of sections 
for subpart D of part IV of subchapter A of chapter 1 
of the such Code is amended by adding at the end the 
following new item: 
‘‘Sec. 45R. Non-clinical testing expenses for neglected disease treatments.’’. 
(d) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2009. 
Æ 
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