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

Bill: 116-hr-7555
Sponsor: full_name: Rep. Nunes, Devin [R-CA-22]
Introduced: 2020-07-09
Policy area: Taxation
Subjects: Chemical and biological weapons

Drug therapy

Emergency medical services and trauma care

Hazardous wastes and toxic substances

Health technology, devices, supplies

Income tax credits

Infectious and parasitic diseases

Medical research

Medical tests and diagnostic methods

Nuclear weapons

Research and development
Latest action: action_date: 2020-07-09
text: Referred to the House Committee on Ways and Means.

Summaries:
action_date: 2020-07-09
action_desc: Introduced in House
text: <p>This bill allows a new research tax credit amount for 14% of specified medical research expenditures. It defines <i>specified medical research expenditures</i> as amounts paid for any qualified research with respect to any qualified countermeasure. A <i>qualified countermeasure</i> is a drug, biological product, or device that is determined to be a priority (1) to diagnose, mitigate, prevent, or treat harm from any biological agent (including organisms that cause an infectious disease) or toxin, chemical, radiological, or nuclear agent that may cause a public health emergency affecting national security; (2) to diagnose, mitigate, prevent, or treat harm from a condition that may result in adverse health consequences or death and may be caused by administering a drug, biological product, or device; or (3) is a product or technology intended to enhance the use or effect of a drug, biological product, or device.</p> <p>The bill also sets forth a special rule for treatment of specified medical research expenditures paid or incurred in taxable years beginning before January 1, 2021. </p>

tv_txt: I 116th CONGRESS 2d Session H. R. 7555 IN THE HOUSE OF REPRESENTATIVES July 9, 2020 Mr. Nunes 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 add a new medical research component to the credit for increasing research activities.

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, 2021 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, 2021— (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, 2020 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.