To amend the Internal Revenue Code of 1986 to add a new medical research component to the credit for increasing research activities.
Bill: H.R.7505 | Sponsor: Rep. Buchanan, Vern (R-FL)
Policy area: Taxation

Summary:
This bill expands the tax credit for increasing research activities to add a new credit amount equal to 14% of specified medical research expenditures. The bill defines specified medical research expenditures as amounts paid or incurred for research with respect to any qualified countermeasure (i.e., a drug, biological product, or device determined to be a priority in protecting against harm from a biological agent or adverse health condition).

To amend the Internal Revenue Code of 1986 to add a new medical 
  research component to the credit for increasing research activities.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. NEW MEDICAL RESEARCH EXPENDITURE COMPONENT OF CREDIT FOR 
              INCREASING RESEARCH ACTIVITIES.

    (a) In General.--Section 41(a) of the Internal Revenue Code of 1986 
is amended by striking ``and'' at the end of paragraph (2), by striking 
the period at the end of paragraph (3) and inserting ``, and'', and by 
adding at the end the following new paragraph:
            ``(4) 14 percent of specified medical research 
        expenditures.''.
    (b) Specified Medical Research Expenditures.--Section 41(f) of such 
Code is amended by adding at the end the following new paragraph:
            ``(7) Specified medical research expenditures.--
                    ``(A) In general.--The term `specified medical 
                research expenditures' means amounts paid or incurred 
                for qualified research with respect to any qualified 
                countermeasure.
                    ``(B) Qualified countermeasure.--The term 
                `qualified countermeasure' has the meaning given to 
                such term in section 319F-1(a)(2) of the Public Health 
                Service Act (42 U.S.C. 247d-6a(a)(2)).''.
    (c) Denial of Double Benefit.--
            (1) Taxable years beginning before january 1, 2022.--In the 
        case of specified medical research expenditures (as defined in 
        section 41(f)(7) of such Code (as added by this section)) paid 
        or incurred in taxable years beginning before January 1, 2022--
                    (A) such expenditures shall be treated in the same 
                manner as qualified research expenses and basic 
                research expenses under section 280C(c)(1) of such Code 
                (as in effect on the day before the enactment of the 
                Tax Cuts and Jobs Act), and
                    (B) the amount determined under section 
                280C(c)(2)(A) (as in effect on such day) for the 
                taxable year shall be increased by the amount of credit 
                determined for the taxable year under section 41(a)(4) 
                (as added by this section).
            (2) Taxable years beginning after december 31, 2021.--
        Section 280C(c)(1) of such Code is amended by striking 
        ``section 41(a)(1)'' and inserting ``paragraphs (1) and (4) of 
        section 41(a)''.
    (d) Conforming Amendment.--Section 41(f)(1) of such Code is amended 
by striking ``and amounts paid or incurred to energy research 
consortiums'' each place it appears and inserting ``, amounts paid or 
incurred to energy research consortiums, and specified medical research 
expenditures''.
    (e) Effective Date.--The amendments made by this section shall 
apply to amounts paid or incurred after the date of the enactment of 
this Act, in taxable years ending after such date.
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