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I
116TH CONGRESS
2D SESSION
H. R. 7556
To amend the Internal Revenue Code of 1986 to make a portion of research
credit refundable for certain small businesses engaging in specified med-
ical research.
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 make
a portion of research credit refundable for certain small
businesses engaging in specified medical research.
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. REFUNDABLE PORTION OF RESEARCH CREDIT
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FOR SMALL BUSINESSES ENGAGING IN SPEC-
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IFIED MEDICAL RESEARCH.
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(a) IN GENERAL.—Section 41 of the Internal Rev-
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enue Code of 1986 is amended by adding at the end the
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following new subsection:
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•HR 7556 IH
‘‘(i) REFUNDABLE
PORTION
FOR
SMALL
BUSI-
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NESSES ENGAGING IN SPECIFIED MEDICAL RESEARCH.—
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‘‘(1) IN GENERAL.—At the election of a medical
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research small business, the portion of the credit de-
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termined under this section for the taxable year
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which is properly allocable to specified medical re-
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search shall be treated (other than for purposes of
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section 280C) as a credit allowed under subpart C
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(and not this subpart).
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‘‘(2) MEDICAL RESEARCH SMALL BUSINESS.—
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For purposes of this subsection, the term ‘medical
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research small business’ means any domestic C cor-
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poration—
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‘‘(A) which conducts any specified medical
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research during the taxable year, and
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‘‘(B) the gross receipts of which (deter-
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mined under the rules of subsection (c)) for the
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taxable year do not exceed $1,000,000.
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‘‘(3) SPECIFIED
MEDICAL
RESEARCH.—For
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purposes of this subsection, the term ‘specified med-
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ical research’ means any qualified research with re-
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spect to qualified countermeasures (as defined in
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section 319F–1(a)(2) of the Public Health Service
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Act (42 U.S.C. 247d–6a(a)(2)).
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‘‘(4) ELECTION.—Any election under this sub-
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section for any taxable year—
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‘‘(A) shall specify the amount of the credit
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to which such election applies,
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‘‘(B) shall be made on or before the due
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date (including extensions) of the return of tax
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for the taxable year,
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‘‘(C) may not be made for any taxable year
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with respect to any portion of the credit deter-
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mined under this section with respect to which
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an election is made under subsection (h), and
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‘‘(D) may be revoked only with the consent
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of the Secretary.
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‘‘(5) REGULATIONS.—The Secretary shall pre-
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scribe such regulations for purposes of this sub-
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section as may be necessary or appropriate for de-
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termining proper allocation to specified medical re-
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search of the portion of any credit allowed to a tax-
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payer for a taxable year under this section.’’.
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(b) CONFORMING AMENDMENT.—Section 1324(b) of
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title 31, United States Code, is amended by inserting
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‘‘41(i),’’ after ‘‘6428,’’.
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(c) EFFECTIVE DATE.—The amendments made by
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this section shall apply to taxable years beginning after
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December 31, 2020.
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Æ
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