Permanent extension of qualifying therapeutic discovery project credit

(a)

In general

Subsection (b) of section 48D of the Internal Revenue Code of 1986 is amended by striking paragraph (5).(b)

Allocation limitation

(1)

In general

Subparagraph (B) of section 48D(d)(1) of such Code is amended by striking $1,000,000,000 for the 2-year period beginning with 2009. and inserting the following:

$1,000,000,000—(i)for the 2-year period beginning with 2009, and(ii)for each 2-year period beginning after 2013.

(2)

Inflation adjustment

Subsection (d) of section 48D of such Code is amended by adding at the end the following new paragraph:

(5)

Inflation adjustment

In the case of any allocations for any 2-year period beginning after 2015, the $1,000,000,000 amount contained in paragraph (1)(B) shall be increased by an amount equal to—(A)such dollar amount, multiplied by(B)the cost-of-living adjustment determined under section 1(f)(3) for the first calendar year in such 2-year period, determined by substituting calendar year 2014 for calendar year 1992 in subparagraph (B) thereof.

Any increase determined under the preceding sentence shall be rounded to the next lowest multiple of $10,000,000.

(c)

Effective date

The amendments made by this section shall apply to amounts paid or incurred in taxable years beginning after December 31, 2013.