[Congressional Bills 113th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5829 Introduced in House (IH)]

113th CONGRESS
  2d Session
                                H. R. 5829

To amend the Internal Revenue Code of 1986 to provide an exception for 
certain public-private research arrangements from the business use test 
          for purposes of determining private activity bonds.


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                    IN THE HOUSE OF REPRESENTATIVES

                           December 10, 2014

 Mr. Lipinski 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 provide an exception for 
certain public-private research arrangements from the business use test 
          for purposes of determining private activity bonds.

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

SECTION 1. EXCEPTION TO BUSINESS USE TEST FOR CERTAIN PUBLIC-PRIVATE 
              RESEARCH ARRANGEMENTS.

    (a) In General.--Section 141(b) of the Internal Revenue Code of 
1986 is amended by adding at the end the following new paragraph:
            ``(10) Exception for certain research arrangements.--
                    ``(A) In general.--Paragraph (1) shall not apply to 
                an issue if the proceeds of such issue are to be used 
                under an arrangement relating to basic research at a 
                facility--
                            ``(i) owned by a governmental unit or a 
                        501(c)(3) organization, and
                            ``(ii) the governmental unit or a 501(c)(3) 
                        organization enters into a bona fide, arm's-
                        length contractual arrangement with a person 
                        other than a governmental unit or a 501(c)(3) 
                        organization regarding the terms for sharing 
                        the economic benefits of any products resulting 
                        from basic research, including arrangements in 
                        which those economic terms (such as exclusive 
                        or non-exclusive licenses of intellectual 
                        property and licensing fees or royalty rates) 
                        are determined in advance at the time the 
                        parties enter into the contractual arrangement.
                    ``(B) Basic research.--For purposes of subparagraph 
                (A), the term `basic research' means any original 
                investigation for the advancement of scientific 
                knowledge not having a specific commercial 
                objective.''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
apply to research agreements entered into after the date of the 
enactment of this Act.
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