[Congressional Bills 112th Congress]
[From the U.S. Government Publishing Office]
[H.R. 629 Introduced in House (IH)]

112th CONGRESS
  1st Session
                                H. R. 629

   To amend the Internal Revenue Code of 1986 to modify the private 
  activity bond rules to except certain uses of intellectual property 
              from the definition of private business use.


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                    IN THE HOUSE OF REPRESENTATIVES

                           February 10, 2011

 Mr. Cleaver introduced the following bill; which was referred to the 
                      Committee on Ways and Means

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                                 A BILL


 
   To amend the Internal Revenue Code of 1986 to modify the private 
  activity bond rules to except certain uses of intellectual property 
              from the definition of private business use.

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

SECTION 1. CERTAIN SCIENTIFIC USES EXCEPTED FROM PRIVATE BUSINESS USE 
              FOR PRIVATE ACTIVITY BONDS.

    (a) In General.--Paragraph (6) of section 141(b) of the Internal 
Revenue Code of 1986 (defining the term ``private business use'') is 
amended by adding the following new subparagraph:
                    ``(C) Certain scientific research.--
                            ``(i) Exception.--For purposes of this 
                        subsection, the term `private business use' 
                        shall not include the receipt by a person 
                        (other than a natural person) of a right to 
                        intellectual property created by scientific 
                        (within the meaning of section 501(c)(3)) 
                        research conducted by a governmental unit or 
                        501(c)(3) organization, if one or more 
                        governmental units or 501(c)(3) organizations 
                        control (as defined in section 512(b)(13)(D)) 
                        such person.
                            ``(ii) Effect on ownership requirement.--
                        The receipt of a right described in clause (i) 
                        by a person described therein shall not cause a 
                        bond to fail to satisfy section 145(a)(1).''.
    (b) Effective Date.--The amendment made by this section shall apply 
to any receipt of intellectual property after the date of the enactment 
of this Act.
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