[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3156 Introduced in House (IH)]

111th CONGRESS
  1st Session
                                H. R. 3156

To amend the Internal Revenue Code of 1986 to provide a credit against 
    tax for expenses paid or incurred in non-clinical research for 
                          neglected diseases.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                              July 9, 2009

 Mr. Payne (for himself, Mr. Lewis of Georgia, Mr. Brady of Texas, and 
Mr. Meek of Florida) 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 against 
    tax for expenses paid or incurred in non-clinical research for 
                          neglected diseases.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. CREDIT FOR NON-CLINICAL TESTING EXPENSES FOR NEGLECTED 
              DISEASE TREATMENTS.

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

``SEC. 45R. NON-CLINICAL TESTING EXPENSES FOR NEGLECTED DISEASE 
              TREATMENTS.

    ``(a) In General.--For purposes of section 38, the credit 
determined under this section for the taxable year is an amount equal 
to 50 percent of the qualified non-clinical research expenses for the 
taxable year.
    ``(b) Qualified Non-clinical Research Expenses.--
            ``(1) In general.--For purposes of this section, the term 
        `qualified non-clinical research expenses' means the amounts 
        which are paid or incurred by the taxpayer during the taxable 
        year which would be described in subsection (b) of section 41 
        if such subsection were applied with the modifications set 
        forth in paragraph (2).
            ``(2) Modifications.--For purposes of paragraph (1), 
        subsection (b) of section 41 shall be applied by substituting 
        `non-clinical research' for `qualified research' each place it 
        appears in paragraphs (2) and (3) of such subsection.
            ``(3) Donation of rights to treatment required.--No credit 
        shall be allowed under this section with respect to qualified 
        non-clinical research expenses for a taxable year unless--
                    ``(A) during such taxable year, or in a previous 
                taxable year, the taxpayer has made a charitable 
                contribution of a license for the treatment with 
                respect to which such qualified non-clinical research 
                expenses were paid or incurred and either--
                            ``(i) the charitable contribution has the 
                        same meaning as defined in section 170(c) and 
                        such charitable contribution is made to a 
                        charitable organization where the charitable 
                        organization licensee researches, develops, or 
                        administers treatments for neglected conditions 
                        or diseases, or
                            ``(ii) the charitable contribution is made 
                        to a foreign government or any subdivision or 
                        organization owned by the foregoing, but only 
                        if the contribution is made for exclusively 
                        public purposes,
                    ``(B) the only commercial rights retained by the 
                taxpayer with respect to such treatment are for an 
                indication which is not a neglected condition or 
                disease, and
                    ``(C) no deduction has been allowed under any 
                provision of this title with respect to such 
                contribution.
    ``(c) Definition and Special Rules.--For purposes of this section--
            ``(1) Non-clinical research.--The term `non-clinical 
        research' means any research relating to the development of a 
        treatment for a neglected disease or condition to the extent 
        such research is not human clinical testing with respect to 
        such treatment.
            ``(2) Neglected disease or condition.--The term `neglected 
        disease or condition' means any of the following:
                    ``(A) African trypanosomiasis.
                    ``(B) Dengue fever.
                    ``(C) Leishmaniasis.
                    ``(D) Malaria.
                    ``(E) Schistosomiasis.
                    ``(F) Tuberculosis.
                    ``(G) Chagas disease.
                    ``(H) Leprosy.
                    ``(I) Lymphatic filariasis.
                    ``(J) Onchocerciasis.
                    ``(K) Lassa Fever.
                    ``(L) Soil Transmitted Helminthiasis.
                    ``(M) Trachoma.
                    ``(N) Yaws.
                    ``(O) Dracunculiasis.
                    ``(P) Cholera.
                    ``(Q) Buruli Ulcer.
                    ``(R) Any other infectious disease for which there 
                is no significant market in developed nations and 
                disproportionately affects poor and marginalized 
                populations as determined and designated by regulation 
                by the Secretary of the Treasury in consultation with 
                the Secretary of Health and Human Services.
            ``(3) Certain rules made applicable.--Rules similar to the 
        rules of paragraphs (1) and (2) of section 41(f), paragraph (4) 
        of section 41(d), and subsections (b)(1)(C) and (c) of section 
        45C shall apply for purposes of this section.
            ``(4) Treatment as trade or business expense.--For purposes 
        of this section and section 174 whether a qualified non-
        clinical research expense (determined after the application of 
        this paragraph) is paid or incurred in connection with the 
        taxpayer's trade or business shall be determined without regard 
        to any contribution of licensing rights described in subsection 
        (b)(3).
            ``(5) Expenses for which credits are allowable.--For 
        purposes of this section, the limitations under section 280C 
        are not applicable for purposes of determining whether an 
        expense is deductible or chargeable to a capital account.''.
    (b) Credit To Be Part of General Business Credit.--Subsection (b) 
of section 38 of such Code (relating to current year business credit) 
is amended by striking ``plus'' at the end of paragraph (34), by 
striking the period at the end of paragraph (35) and inserting ``, 
plus'', and by adding at the end the following new paragraph:
            ``(36) the neglected disease credit determined under 
        section 45R.''.
    (c) Clerical Amendment.--The table of sections for subpart D of 
part IV of subchapter A of chapter 1 of the such Code is amended by 
adding at the end the following new item:

``Sec. 45R. Non-clinical testing expenses for neglected disease 
                            treatments.''.
    (d) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2009.
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