To amend the Internal Revenue Code of 1986 to provide an exception for certain public-private research arrangements from the business use test for purposes of determining private activity bonds.

Bill: 113-hr-5829
Sponsor: full_name: Rep. Lipinski, Daniel [D-IL-3]
Introduced: 2014-12-10
Policy area: Taxation
Subjects: Contracts and agency

Income tax exclusion

Public contracts and procurement

Public-private cooperation

Research and development

Securities

Tax-exempt organizations
Latest action: action_date: 2014-12-10
text: Referred to the House Committee on Ways and Means.

Summaries:
action_date: 2014-12-10
action_desc: Introduced in House
text: <p>Amends the Internal Revenue Code to allow a tax exemption for private activity bond interest&nbsp;if the proceeds from such a bond are to be used for basic research (i.e., any original investigation for the advancement of scientific knowledge not having a specific commercial objective)&nbsp;at a government unit, a tax-exempt&nbsp;charitable organization, or a private organization that has a bona-fide contractual arrangement with&nbsp;a government&nbsp;unit or tax-exempt organization.</p>

tv_txt: I 113th CONGRESS 2d Session H. R. 5829 IN THE HOUSE OF REPRESENTATIVES December 10, 2014 Mr. Lipinski 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 an exception for certain public-private research arrangements from the business use test for purposes of determining private activity bonds.

1. Exception to business use test for certain public-private research arrangements (a) In general Section 141(b) of the Internal Revenue Code of 1986 is amended by adding at the end the following new paragraph: (10) Exception for certain research arrangements (A) In general Paragraph (1) shall not apply to an issue if the proceeds of such issue are to be used under an arrangement relating to basic research at a facility— (i) owned by a governmental unit or a 501(c)(3) organization, and (ii) the governmental unit or a 501(c)(3) organization enters into a bona fide, arm’s-length contractual arrangement with a person other than a governmental unit or a 501(c)(3) organization regarding the terms for sharing the economic benefits of any products resulting from basic research, including arrangements in which those economic terms (such as exclusive or non-exclusive licenses of intellectual property and licensing fees or royalty rates) are determined in advance at the time the parties enter into the contractual arrangement. (B) Basic research For purposes of subparagraph (A), the term basic research means any original investigation for the advancement of scientific knowledge not having a specific commercial objective. . (b) Effective date The amendment made by subsection (a) shall apply to research agreements entered into after the date of the enactment of this Act.