1.Credit for non-clinical
testing expenses for neglected disease treatments
(a)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:
45R.Non-clinical
testing expenses for neglected disease treatments
(a)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)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)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 requiredNo 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 rulesFor purposes of this section—
(1)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 conditionThe 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 ApplicableRules 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 expenseFor 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 allowableFor 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 creditSubsection (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)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)The amendments made by this section shall apply to taxable
years beginning after December 31, 2009.