(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-
nipulating matter on an atomic or molecular scale, 
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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— 
(I) developing curricula related to 
nanotechnology; 
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(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 nanotechno-
logy 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 
benchmarking system based on uniform meas-
ures, and for dissemination of information re-
garding such practices. 
(3) CONTRACTS.—The Secretary is authorized 
to contract with organizations with expertise in incu-
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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 
or provides technical assistance to the degree- 
granting institution’s affiliated incubator, or if 
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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 
(iii) require significant collaboration 
between businesses and academia. 
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(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 
emerging nanotechnology companies create a sound 
foundation for new business. 
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(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 2012, 2013, and 
2014. 
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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 an 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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nology training to its employees using internal train-
ing development and delivery personnel. The training 
programs must use industry-recognized training dis-
ciplines and evaluation methods, comparable to insti-
tutional and commercial training providers. 
‘‘(d) DENIAL OF DOUBLE BENEFIT.— 
‘‘(1) DISALLOWANCE OF OTHER CREDITS AND 
DEDUCTIONS.—No deduction or credit shall be al-
lowed under any other provision of this chapter for 
expenses taken into account in determining the cred-
it under this section. 
‘‘(2) REDUCTION
FOR
HOPE
AND
LIFETIME 
LEARNING
CREDITS.—The amount taken into ac-
count under subsection (a) shall be reduced by the 
nanotechnology education and training program ex-
penses taken into account in determining the credits 
under section 25A. 
‘‘(e) CERTAIN RULES MADE APPLICABLE.—For pur-
poses of this section, rules similar to the rules of section 
45A(e)(2) and subsections (c), (d), and (e) of section 52 
shall apply. 
‘‘(f) APPLICATION WITH OTHER CREDITS.—The 
credit allowed by subsection (a) for any taxable year shall 
not exceed the excess (if any) of— 
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‘‘(1) the regular tax for the taxable year re-
duced by the sum of the credits allowable under the 
subpart A and the previous sections of this subpart, 
over 
‘‘(2) the tentative minimum tax for the taxable 
year.’’. 
(b) CLERICAL AMENDMENT.—The table of sections 
for subpart B of part IV of subchapter A of chapter 1 
of the Internal Revenue Code of 1986 is amended by add-
ing at the end the following: 
‘‘Sec. 30E. Nanotechnology education and training program expenses.’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to amounts paid or incurred in tax-
able years beginning after December 31, 2010. 
SEC. 402. ELIGIBLE EDUCATIONAL INSTITUTION. 
(a) IN GENERAL.—Section 25A(f)(2) of the Internal 
Revenue Code of 1986 (relating to eligible educational in-
stitution) is amended to read as follows: 
‘‘(2) ELIGIBLE EDUCATIONAL INSTITUTION.— 
The term ‘eligible educational institution’ means— 
‘‘(A) an institution— 
‘‘(i) which is described in section 
101(b) or 102(a) of the Higher Education 
Act of 1965, and 
‘‘(ii) which is eligible to participate in 
a program under title IV of such Act, or 
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