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I
116TH CONGRESS
2D SESSION
H. R. 7555
To amend the Internal Revenue Code of 1986 to add a new medical research
component to the credit for increasing research activities.
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 in-
creasing research activities.
Be it enacted by the Senate and House of Representa-
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tives of the United States of America in Congress assembled,
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SECTION 1. NEW MEDICAL RESEARCH EXPENDITURE COM-
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PONENT OF CREDIT FOR INCREASING RE-
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SEARCH ACTIVITIES.
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(a) IN GENERAL.—Section 41(a) of the Internal Rev-
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enue Code of 1986 is amended by striking ‘‘and’’ at the
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end of paragraph (2), by striking the period at the end
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of paragraph (3) and inserting ‘‘, and’’, and by adding
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at the end the following new paragraph:
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•HR 7555 IH
‘‘(4) 14 percent of specified medical research
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expenditures.’’.
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(b) SPECIFIED
MEDICAL
RESEARCH
EXPENDI-
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TURES.—Section 41(f) of such Code is amended by adding
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at the end the following new paragraph:
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‘‘(7) SPECIFIED MEDICAL RESEARCH EXPENDI-
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TURES.—
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‘‘(A) IN
GENERAL.—The term ‘specified
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medical research expenditures’ means amounts
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paid or incurred for qualified research with re-
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spect to any qualified countermeasure.
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‘‘(B) QUALIFIED COUNTERMEASURE.—The
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term ‘qualified countermeasure’ has the mean-
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ing given to such term in section 319F–1(a)(2)
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of the Public Health Service Act (42 U.S.C.
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247d–6a(a)(2)).’’.
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(c) DENIAL OF DOUBLE BENEFIT.—
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(1) TAXABLE YEARS BEGINNING BEFORE JANU-
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ARY 1, 2021.—In the case of specified medical re-
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search expenditures (as defined in section 41(f)(7)
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of such Code (as added by this section)) paid or in-
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curred in taxable years beginning before January 1,
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2021—
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(A) such expenditures shall be treated in
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the same manner as qualified research expenses
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and basic research expenses under section
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280C(c)(1) of such Code (as in effect on the
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day before the enactment of the Tax Cuts and
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Jobs Act), and
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(B) the amount determined under section
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280C(c)(2)(A) (as in effect on such day) for the
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taxable year shall be increased by the amount
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of credit determined for the taxable year under
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section 41(a)(4) (as added by this section).
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(2) TAXABLE YEARS BEGINNING AFTER DECEM-
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BER 31, 2020.—Section 280C(c)(1) of such Code is
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amended by striking ‘‘section 41(a)(1)’’ and insert-
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ing ‘‘paragraphs (1) and (4) of section 41(a)’’.
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(d) CONFORMING AMENDMENT.—Section 41(f)(1) of
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such Code is amended by striking ‘‘and amounts paid or
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incurred to energy research consortiums’’ each place it ap-
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pears and inserting ‘‘, amounts paid or incurred to energy
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research consortiums, and specified medical research ex-
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penditures’’.
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(e) EFFECTIVE DATE.—The amendments made by
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this section shall apply to amounts paid or incurred after
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the date of the enactment of this Act, in taxable years
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ending after such date.
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Æ
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