[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5821 Introduced in House (IH)]

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118th CONGRESS
  1st Session
                                H. R. 5821

  To amend the Internal Revenue Code of 1986 to provide for a credit 
     against tax for expenses for translational research regarding 
         neurodegenerative diseases and psychiatric conditions.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                           September 28, 2023

Mr. Thompson of California (for himself and Mr. Kelly of Pennsylvania) 
 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 for a credit 
     against tax for expenses for translational research regarding 
         neurodegenerative diseases and psychiatric conditions.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Mental Health Research Accelerator 
Act of 2023''.

SEC. 2. EXPENSES FOR CERTAIN TRANSLATIONAL RESEARCH.

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

``SEC. 45BB. EXPENSES FOR CERTAIN TRANSLATIONAL RESEARCH.

    ``(a) Allowance of Credit.--For purposes of section 38, the 
translational research credit determined under this section for any 
taxable year shall be an amount equal to 25 percent of the amounts paid 
or incurred by the taxpayer during such taxable year which are 
necessary for translational research regarding neurodegenerative 
diseases and psychiatric conditions.
    ``(b) Limitation.--
            ``(1) Taxpayer limitation.--The credit allowed under this 
        section to a taxpayer for a taxable year beginning in any 
        calendar year shall not exceed the portion of the limitation 
        amount allocated to the taxpayer under this subsection reduced 
        by the amount of credit allowed to the taxpayer under this 
        section for all prior taxable years.
            ``(2) Aggregate national limitation.--
                    ``(A) In general.--There is a translational 
                research credit limitation for each calendar year as 
                follows:
                            ``(i) $1,000,000,000 for 2024.
                            ``(ii) $2,000,000,000 for each of years 
                        2025 through 2028.
                            ``(iii) $1,000,000,000 for 2029.
                    ``(B) Allocation of limitation.--As expeditiously 
                as possible, the Secretary shall allocate among 
                applicants selected by the Secretary the limitation 
                under subparagraph (A) for all years.
                    ``(C) Carryover of unused limitation.--If the 
                translational research credit limitation for any 
                calendar year exceeds the aggregate amount allocated 
                under subparagraph (A) for such year, such limitation 
                for the succeeding calendar year shall be increased by 
                the amount of such excess.
                    ``(D) Regulations.--The Secretary shall (in 
                consultation with the Secretary of Health and Humans 
                Services, the Administrator of the Food and Drug 
                Administration, and the Director of the National 
                Institutes of Health) prescribe regulations as may be 
                necessary to carry out the purposes of this section, 
                including establishing the application process and the 
                criteria for allocation under subparagraph (B). Such 
                regulations shall include the following:
                            ``(i) Amounts shall be allocated based on 
                        scientific merit.
                            ``(ii) Projects should include all phases 
                        of the research continuum.
                            ``(iii) An emphasis on new therapeutics and 
                        devices targeted at central nervous system 
                        disorders and in the neurological and 
                        psychiatric fields.
                            ``(iv) Standards for repurposing existing 
                        drugs and devices for new purposes.
                            ``(v) Standards for public-private 
                        partnerships with priority given to 
                        collaborative efforts and sharing of 
                        intellectual property held by tax exempt 
                        entities involved in the project.
    ``(c) Transfer of Credit.--
            ``(1) In general.--If, with respect to a credit under 
        subsection (a) for any taxable year--
                    ``(A) a tax-exempt entity would be the taxpayer 
                (but for this paragraph), and
                    ``(B) such entity elects the application of this 
                paragraph for such taxable year with respect to all (or 
                any portion specified in such election) of such credit,
        the eligible project partner specified in such election, and 
        not the tax-exempt entity, shall be treated as the taxpayer for 
        purposes of this title with respect to such credit (or such 
        portion thereof).
            ``(2) Definitions.--For purposes of this subsection--
                    ``(A) Tax-exempt entity.--The term `tax-exempt 
                entity' means--
                            ``(i) a Federal, State, Indian tribal 
                        government (as defined in section 7701(a)(4)), 
                        or local government entity, or any political 
                        subdivision, agency, or instrumentality 
                        thereof, and
                            ``(ii) an organization described in section 
                        501(c)(3) and exempt from tax under section 
                        501(a).
                    ``(B) Eligible project partner.--The term `eligible 
                project partner' means any person who--
                            ``(i) is identified in the application for 
                        allocation of credit under this section as a 
                        project partner, and
                            ``(ii) participates in, or provides funding 
                        for, the research with respect to which 
                        limitation was allocated by the Secretary under 
                        subsection (b).
            ``(3) Special rules.--
                    ``(A) In general.--In the case of a credit under 
                subsection (a) which is determined at the partnership 
                level--
                            ``(i) for purposes of paragraph (1)(A), a 
                        tax-exempt entity shall be treated as the 
                        taxpayer with respect to such entity's 
                        distributive share of such credit, and
                            ``(ii) the term `eligible project partner' 
                        shall include any partner of the partnership.
                    ``(B) Taxable year in which credit taken into 
                account.--In the case of any credit (or portion 
                thereof) with respect to which an election is made 
                under paragraph (1), such credit shall be taken into 
                account in the first taxable year of the eligible 
                project partner ending with, or after, the tax-exempt 
                entity's taxable year with respect to which the credit 
                was determined.
    ``(d) Coordination With Credit for Increasing Research 
Expenditures.--
            ``(1) In general.--Except as provided in paragraph (2), any 
        expenses taken into account under this section shall not be 
        taken into account for purposes of determining the credit 
        allowable under section 41 for such taxable year.
            ``(2) Expenses included in determining base period research 
        expenses.--Any expenses taken into account under this section 
        which are qualified research expenses (within the meaning of 
        section 41(b)) shall be taken into account in determining base 
        period research expenses for purposes of applying section 41 to 
        subsequent taxable years.
    ``(e) Termination.--No credit shall be allowed under this section 
for any taxable year beginning after December 31, 2033.''.
    (b) Deduction Disallowed.--Section 280C of such Code is amended by 
adding at the end the following new subsection:
    ``(i) Credit for Certain Translational Research.--No deduction 
shall be allowed for that portion of the expenses taken into account 
under section 45BB otherwise allowable as a deduction for the taxable 
year which is equal to the amount of the credit determined for such 
taxable year under such section.''.
    (c) Credit Made Part of General Business Credit.--Section 38(b) of 
the Internal Revenue Code of 1986 is amended by striking ``plus'' at 
the end of paragraph (40), by striking the period at the end of 
paragraph (41) and inserting ``, plus'', and by adding at the end the 
following new paragraph:
            ``(42) the credit determined under section 45BB.''.
    (d) Clerical Amendment.--The table of sections for subpart D of 
part IV of subchapter A of chapter 1 of such Code is amended by adding 
at the end the following new item:

``Sec. 45BB. Expenses for certain translational research.''.
    (e) Effective Date.--The amendments made by this subsection shall 
take effect on the date of the enactment of this Act.
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