Detailed Instructions: In this task, you are given text for US Congressional and California state bills, your task is to generate a summary for this bill.
Q: SECTION 1. SHORT TITLE.

This Act may be cited as the ''Ethical Stem Cell Research Tax
Credit Act of 2008''.

SEC. 2. CREDIT FOR ETHICAL STEM CELL RESEARCH.

(a) In General.--Subpart D of part IV of subchapter A of chapter 1
(relating to business related credits) of the Internal Revenue Code of
1986 is amended by adding at the end the following new section:

''SEC. 45O. ETHICAL STEM CELL RESEARCH.

''(a) Allowance of Credit.--For purposes of section 38, in the case
of an eligible taxpayer, the ethical stem cell research credit
determined under this section for the taxable year shall be an amount
equal to 30 percent of the qualified stem cell research expenses paid
or incurred by the taxpayer during the taxable year.
''(b) Eligible Taxpayer.--For purposes of this section, the term
'eligible taxpayer' means any taxpayer that elects the application of
this section for the taxable year.
''(c) Qualified Stem Cell Research Expenses.--For purposes of this
section--
''(1) In general.--The term 'qualified stem cell research
expenses' means expenses which are paid or incurred by the
eligible taxpayer during the taxable year in carrying on basic
and applied research to develop techniques for the isolation,
derivation, production, testing, and human clinical use of stem
cells that may result in improved understanding of or
treatments for diseases and other adverse health conditions, no
part of which may involve--
''(A) the creation of a human embryo for research
purposes,
''(B) the destruction of or discarding of, or risk
of injury to, a human embryo, or
''(C) the use of any stem cell, the derivation or
provision of which would be inconsistent with
subparagraph (A) or (B).
''(2) Human embryo.--The term 'human embryo' means any
organism not protected as a human subject under part 46 of
title 45, Code of Federal Regulations (as in effect on the date
of the enactment of this section) that is derived by
fertilization, parthenogenesis, cloning, or any other means
from one or more human gametes or human diploid cells.
''(3) Risk of injury.--The term 'risk of injury' means
subjecting a human embryo to risk of injury or death greater
than that allowed for research on a fetus in utero under
section 498(b) of the Public Health Service Act (42 U.S.C.
289g(b)) (as in effect on the date of the enactment of this
section) and section 46.204(b) of title 45, Code of Federal
Regulations (as so in effect).
''(d) Treatment of Qualified Stem Cell Research Expenses.--
''(1) In general.--Except as provided in paragraph (2), any
qualified stem cell research expenses for a taxable year to
which an election under this section applies shall not be taken
into account for purposes of determining the credit allowable
under section 41 for such taxable year.
''(2) Treated as base period research expenses.--Any
qualified stem cell research expenses for any taxable year
which are qualified research expenses (within the meaning of
section 41(b)) shall be taken into account in determining base
period research expenses for purposes of applying section 41 to
subsequent taxable years.
''(e) Special Rules.--
''(1) Limitation.--No credit shall be allowed under this
section with respect to any stem cell research conducted by a
corporation to which an election under section 936 applies.
''(2) Aggregation of expenditures and allocations of
credit.--Rules similar to the rules of paragraphs (1) and (2)
of section 41(f) and section 41(g) shall apply for purposes of
this section.''.
(b) Credit Allowed as Part of General Business Credit.--Section
38(b) of the Internal Revenue Code of 1986 is amended by striking
''plus'' at the end of paragraph (30), by striking the period at the
end of paragraph (31) and inserting '', plus'', and by adding at the
end the following new paragraph:
''(32) the ethical stem cell research credit determined
under section 45O(a).''.
(c) Denial of Double Benefit.--Section 280C of the Internal Revenue
Code of 1986 is amended by adding at the end the following new
subsection:
''(f) Ethical Stem Cell Research Credit.--
''(1) In general.--No deduction shall be allowed for that
portion of the qualified stem cell research expenses (as
defined in section 45O(c)(1)) otherwise allowable as a
deduction for the taxable year which is equal to the amount of
the credit determined for such taxable year under section
45O(a).
''(2) Similar rule where taxpayer capitalizes rather than
deducts expenses.--If--
''(A) the amount of the credit determined for the
taxable year under section 45O(a), exceeds
''(B) the amount allowable as a deduction for such
taxable year for qualified stem cell research expenses
(determined without regard to paragraph (1)),
the amount chargeable to capital account for the taxable year
for such expenses shall be reduced by the amount of such
excess.
''(3) Controlled groups.--Paragraph (3) of subsection (b)
shall apply for purposes of this subsection.''.
(d) Clerical Amendment.--The table of sections for subpart D of
part IV of subchapter A of chapter 1 of the Internal Revenue Code of
1986 is amended by adding at the end the following new item:

''Sec. 45O. Ethical stem cell research.''.
(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.
A:
Ethical Stem Cell Research Tax Credit Act of 2008 - Amends the Internal Revenue Code to allow a tax credit for 30% of qualified stem cell research expenses paid or incurred in a taxable year. Defines "qualified stem cell research expenses" as expenses for carrying out basic and applied research to develop techniques for the isolation, derivation, production, testing, and human clinical use of stem cells that may result in improved understanding of or treatments for diseases and other adverse health conditions. Prohibits a tax credit for any research expenses that may involve: (1) the creation of a human embryo for research purposes; (2) the destruction of or discarding of, or risk of injury to, a human embryo; or (3) the use of any stem cell for prohibited purposes.