,,ii #aacth ,,congress #ast ,session ,s4 #acf ,,in ,,the ,,senate ,,of ,,the ,,united ,,states ,january #bd 7legislative day1 ,january #c71 #bjac ,mr4 ,vitter introduced the following bill2 which was read twice and referred to the ,committee on ,finance ,a ,,bill ,to amend the ,internal ,revenue ,code of #aihf to provide a ,federal income tax credit for certain stem cell research expenditures4 #a4 ,short title ,this ,act may be cited as the ,ethical ,stem ,cell ,research ,tax ,credit ,act of #bjac4 #b4 ,credit for ethical stem cell research 7a7 ,in general ,subpart ,d of part ,,iv of subchapter ,a of chapter #a of the ,internal ,revenue ,code of #aihf is amended by adding at the end the following new section3 #de,s4 ,ethical stem cell research 7a7 ,allowance of credit ,for purposes of section #ch1 in the case of an eligible taxpayer1 the ethical stem cell research credit determined under this section for the taxable year shall be an amount equal to #cj percent of the qualified stem cell research expenses paid or incurred by the taxpayer during the taxable year4 7b7 ,eligible taxpayer ,for purposes of this section1 the term eligible taxpayer means any taxpayer that elects the application of this section for the taxable year4 7c7 ,qualified stem cell research expenses ,for purposes of this section-- 7#a7 ,in general ,the term qualified stem cell research expenses means expenses which are paid or incurred by the eligible taxpayer during the taxable year in carrying on basic and applied research to develop techniques for the isolation1 derivation1 production1 testing1 and human clinical use of stem cells that may result in improved understanding of or treatments for diseases and other adverse health conditions1 no part of which may involve-- 7,a7 the creation of a human embryo for research purposes1 7,b7 the destruction of or discarding of1 or risk of injury to1 a human embryo1 or 7,c7 the use of any stem cell1 the derivation or provision of which would be inconsistent with subparagraph 7,a7 or 7,b74 7#b7 ,human embryo ,the term human embryo means any organism not protected as a human subject under part #df of title #de1 ,code of ,federal ,regulations 7as in effect on the date of the enactment of this section7 that is derived by fertilization1 parthenogenesis1 cloning1 or any other means from one or more human gametes or human diploid cells4 7#c7 ,risk of injury ,the term risk of injury means subjecting a human embryo to risk of injury or death greater than that allowed for research on a fetus in utero under section #dih7;b7 of the ,public ,health ,service ,act 7#db ,u4,s4,c4 #bhi;g7b77 7as in effect on the date of the enactment of this section7 and section #df4bjd7;b7 of title #de1 ,code of ,federal ,regulations 7as so in effect74 7d7 ,treatment of qualified stem cell research expenses 7#a7 ,in general ,except as provided in paragraph 7#b71 any qualified stem cell research expenses for a taxable year to which an election under this section applies shall not be taken into account for purposes of determining the credit allowable under section #da for such taxable year4 7#b7 ,treated as base period research expenses ,any qualified stem cell research expenses for any taxable year which are qualified research expenses 7within the meaning of section #da7;b77 shall be taken into account in determining base period research expenses for purposes of applying section #da to subsequent taxable years4 7e7 ,special rules 7#a7 ,limitation ,no credit shall be allowed under this section with respect to any stem cell research conducted by a corporation to which an election under section #icf applies4 7#b7 ,aggregation of expenditures and allocations of credit ,rules similar to the rules of paragraphs 7#a7 and 7#b7 of section #da7;f7 and section #da7;g7 shall apply for purposes of this section4 4 7b7 ,credit allowed as part of general business credit ,section #ch7;b7 of the ,internal ,revenue ,code of #aihf is amended by striking plus at the end of paragraph 7#ce71 by striking the period at the end of paragraph 7#cf7 and inserting 1 plus1 and by adding at the end the following new paragraph3 7#cg7 the ethical stem cell research credit determined under section #de,s7a74 4 7c7 ,denial of double benefit 7#a7 ,technical amendment ,the second subsection 7g7 of section #bhj;,c of the ,internal ,revenue ,code of #aihf1 as added by section #adja7;b7 of the ,patient ,protection and ,affordable ,care ,act1 is redesignated as subsection 7i74 7#b7 ,in general ,section #bhj;,c of the ,internal ,revenue ,code of #aihf1 as amended by paragraph 7#a71 is further amended by adding at the end the following new subsection3 7j7 ,ethical stem cell research credit 7#a7 ,in general ,no deduction shall be allowed for that portion of the qualified stem cell research expenses 7as defined in section #de,s7c77#a77 otherwise allowable as a deduction for the taxable year which is equal to the amount of the credit determined for such taxable year under section #de,s7a74 7#b7 ,similar rule where taxpayer capitalizes rather than deducts expenses ,if-- 7,a7 the amount of the credit determined for the taxable year under section #de,s7a71 exceeds 7,b7 the amount allowable as a deduction for such taxable year for qualified stem cell research expenses 7determined without regard to paragraph 7#a771 the amount chargeable to capital account for the taxable year for such expenses shall be reduced by the amount of such excess4 7#c7 ,controlled groups ,paragraph 7#c7 of subsection 7b7 shall apply for purposes of this subsection4 4 7d7 ,clerical amendment ,the table of sections for subpart ,d of part ,,iv of subchapter ,a of chapter #a of the ,internal ,revenue ,code of #aihf is amended by adding at the end the following new item3 ,sec4 #de,s4 ,ethical stem cell research4 4 7e7 ,effective ,date ,the amendments made by this section shall apply to amounts paid or incurred after the date of the enactment of this ,act4