To amend the Internal Revenue Code of 1986 to provide a credit to small businesses for research activities related to the mitigation of certain drug threats.

Bill: 118-hr-6979
Sponsor: full_name: Rep. Neguse, Joe [D-CO-2]
Introduced: 2024-01-11
Policy area: Taxation
Latest action: action_date: 2024-01-11
text: Referred to the House Committee on Ways and Means.

Summaries:
action_date: 2024-01-11
action_desc: Introduced in House
text: <p>This bill allows certain small businesses a new tax credit for 10% of their qualified drug threat mitigation research expenses. Such expenses include research into mitigating or treating the effects of specified drugs, including any emerging drugs, fentanyl, a fentanyl-related substance, or methamphetamine.</p>

tv_txt: I 118th CONGRESS 2d Session H. R. 6979 IN THE HOUSE OF REPRESENTATIVES January 11, 2024 Mr. Neguse (for himself, Ms. Dean of Pennsylvania , Mr. Bacon , Mr. Trone , Mr. Lawler , and Mr. Ciscomani ) 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 to small businesses for research activities related to the mitigation of certain drug threats.

1. Credit for research activities of small businesses related to the mitigation of certain drug threats (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) in the case of a small business (as defined in subsection (b)(3)(D)(iii)), 10 percent of the qualified drug threat mitigation research expenses (as defined in subsection (i)) for the taxable year. . (b) Definitions Section 41 of such Code is amended by adding at the end the following new subsection: (i) Qualified drug threat mitigation research expenses For purposes of this section— (1) Qualified drug threat mitigation research expenses The term qualified drug threat mitigation research expenses means the qualified research expenses which would be determined under subsection (b) if qualified drug threat mitigation research were substituted for qualified research each place it appears therein. (2) Qualified drug threat mitigation research The term qualified drug threat mitigation research means qualified research which is undertaken for the purpose of discovering information related to mitigating or treating the effects of the use of a specified drug or to preventing, diverting, or intervening in such use. Such term shall not include any clinical research unless such research complies with the policies and guidelines of the National Institutes of Health for clinical research. (3) Specified drug (A) In general The term specified drug means any emerging drug, fentanyl, fentanyl-related substance, or methamphetamine. (B) Emerging drug The term emerging drug means a drug designated as an emerging drug threat under section 709(c) of the Office of National Drug Control Policy Reauthorization Act of 1998 ( 21 U.S.C. 1708(c) ). Such term shall include any such drug for any taxable year if such designation is in effect under such section at any time during such taxable year. (C) Fentanyl-related substance The term fentanyl-related substance means any substance that is structurally related to fentanyl by 1 or more of the following modifications: (i) By replacement of the phenyl portion of the phenethyl group by any monocycle, whether or not further substituted in or on the monocycle. (ii) By substitution in or on the phenethyl group with alkyl, alkenyl, alkoxyl, hydroxyl, halo, haloalkyl, amino, or nitro groups. (iii) By substitution in or on the piperidine ring with alkyl, alkenyl, alkoxyl, ester, ether, hydroxyl, halo, haloalkyl, amino, or nitro groups. (iv) By replacement of the aniline ring with any aromatic monocycle whether or not further substituted in or on the aromatic monocycle. (v) By replacement of the N–propionyl group with another acyl group. . (c) Effective date The amendments made by this section shall apply to taxable years beginning after the date of the enactment of this Act. (d) GAO report During the 60-day period beginning on the date which 10 years after the date of the enactment of this Act, the Comptroller General shall submit a written report to Congress regarding the amount of tax credits allowed under section 41(a)(4) of the Internal Revenue Code of 1986 for qualified drug threat mitigation expenses and the types of qualified drug threat mitigation research with respect to which such credits were allowed. The Comptroller General shall ensure that the data in such report is anonymous and that any studies undertaken to prepare such report do not impede qualified drug threat mitigation research.