,i #aaf? ,,congress #b;d ,session ,h4 ,r4 #gecg ,,9 ,,! ,,h\se ,,( ,,repres5tatives ,july #i1 #bjbj,mr4 ,kelly ( ,p5nsylvania introduc$ ! foll[+ bill2 :i* 0 ref]r$ to ! ,committee on ,ways & ,means ,a ,,bill ,to am5d ! ,int]nal ,rev5ue ,code ( #aihf to provide an exception f ! passive loss rules = inve/m5ts 9 specifi$ m$ical rese>* small bus9ess pass-?ru entities4 #a4 ,%ort title ,?is ,act may be cit$ z ! ,infecti\s ,disease ,!rapies ,rese>* & ,innovation ,act ( #bjbj4 #b4 ,exception f passive loss rules = inve/m5ts 9 specifi$ m$ical rese>* small bus9ess pass-?ru entities 7a7 ,9 g5]al ,subsection 7c7 ( section #dfi ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$ by r$esignat+ p>agraphs 7#d7 ?r\gh 7#g7 z p>agraphs 7#e7 ?r\gh 7#h71 respectively1 & by ins]t+ aft] p>agraph 7#c7 ! foll[+ new p>agraph3 7#d7 ,specifi$ m$ical rese>* activities 7,a7 ,9 g5]al ,! t]m passive activity %all n include any qualifi$ m$ical rese>* activity ( ! taxpay] c>ri$ on by a specifi$ m$ical rese>* small bus9ess pass-?ru entity4 7,b7 ,treatm5t ( losses & d$uctions 7i7 ,9 g5]al ,losses or d$uctions ( a taxpay] 9 connection ) qualifi$ m$ical rese>* activities c>ri$ on by a specifi$ m$ical rese>* small bus9ess pass-?ru entity %all n be treat$ z losses or d$uctions1 respectively1 f a passive activity except z provid$ 9 clause 7ii7 & subp>agraph 7,c74 7ii7 ,limitation ,clause 7i7 %all apply to losses & d$uctions ( a taxpay] 9 connection ) a specifi$ m$ical small bus9ess pass-?ru entity = a taxable ye> only to ! ext5t t ! aggregate losses & d$uctions ( ! taxpay] 9 connection ) qualifi$ m$ical rese>* activities ( su* entity = su* taxable ye> d n exce$ ! portion ( ! taxpay]'s adju/$ basis 9 ! taxpay]'s own]%ip int]e/ 9 su* entity t is attributable to money or o!r prop]ty contribut$-- 7,i7 9 ex*ange = su* own]%ip int]e/1 & 7,,ii7 specifically = use 9 connection ) qualifi$ m$ical rese>* activities4 ,= purposes ( ! prec$+ s5t5ce1 ! taxpay]'s basis %all n include any portion ( su* basis :i* is attributable to an increase 9 a p>tn]'s %>e ( ! liabilities ( a p>tn]%ip t is consid]$ "u section #geb7;a7 z a contribution ( money4 7,c7 ,treatm5t ( c>ryov]s ,subp>agraph 7,b77i7 %all n apply to ! portion ( any loss or d$uction t is c>ri$ ov] "u subsection 7b7 into a taxable ye> o!r ?an ! taxable ye> 9 :i* su* loss or d$uction arose4 7,d7 ,qualifi$ m$ical rese>* activity ,= purposes ( ?is p>agraph1 ! t]m qualifi$ m$ical rese>* activity means any qualifi$ rese>* 7)9 ! mean+ ( section #da7;d77 ) respect to qualifi$ c\nt]measures 7z def9$ 9 section #cai;,f-#a7;a77#b7 ( ! ,public ,heal? ,s]vice ,act 7#db ,u4,s4,c4 #bdg;d-#f;a7a77#b7774 7,e7 ,specifi$ m$ical rese>* small bus9ess pass-?ru entity ,= purposes ( ?is p>agraph1 ! t]m specifi$ m$ical rese>* small bus9ess pass-?ru entity means any dome/ic pass-?ru entity = any taxable ye> if-- 7i7 m ?an #hj p]c5t ( su* entity's exp5ditures on qualifi$ rese>* = su* taxable ye> are paid or incurr$ 9 connection ) qualifi$ m$ical rese>* activities1 & 7ii7 ! gross receipts 7z det]m9$ "u ! rules ( section #da7;h77#c77 ( su* entity = ! taxable ye> 7& ea* prec$+ taxable ye>7 is less ?an #a1jjj1jjj4 7,f7 ,capital exp5ditures tak5 into acc\nt = exp5ditures te/ ,an exp5diture %all n fail to be tak5 into acc\nt "u subp>agraph 7,e77i7 m]ely because su* exp5diture is *>geable to capital acc\nt4 7,g7 ,pass-?ru entity ,= purposes ( ?is p>agraph1 ! t]m pass-?ru entity means any p>tn]%ip1 ,s corporation1 or o!r entity id5tifi$ by ! ,secret>y z a pass-?ru entity = purposes ( ?is p>agraph4 7,h7 ,aggregation rules 7i7 ,9 g5]al ,all p]sons treat$ z a s+le employ] "u subsection 7a7 or 7b7 ( section #eb1 or subsection 7m7 or 7o7 ( section #dad1 %all be treat$ z a s+le entity = purposes ( subp>agraphs 7,e7 & 7,f77iii74 7ii7 ,limitation :]e entity w\ld n qualify ,no entity %all be treat$ z a specifi$ m$ical rese>* small bus9ess pass-?ru entity unless su* entity qualifies z su* bo? ) & )\t ! application ( clause 7i74 4 7b7 ,mat]ial p>ticipation n requir$ ,p>agraph 7#e7 ( section #dfi7;c7 ( ! ,int]nal ,rev5ue ,code ( #aihf1 z r$esignat$ by subsection 7a71 is am5d$ by /rik+ & 7#c7 9 ! head+ & text & ins]t+ 1 7#c71 & 7#d74 7c7 ,c]ta9 rese>*-,relat$ d$uctions & cr$its ( specifi$ m$ical rese>* small bus9ess pass-,?ru entities all[$ = purposes ( det]m9+ alt]native m9imum tax 7#a7 ,d$uction = rese>* & exp]im5tal exp5ditures ,p>agraph 7#b7 ( section #ef7;b7 ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$ by add+ at ! end ! foll[+ new subp>agraph3 7,e7 ,exception = specifi$ m$ical rese>* small bus9ess pass-?ru entities ,9 ! case ( a specifi$ m$ical rese>* small bus9ess pass-?ru entity 7z def9$ 9 section #dfi7;c77#d771 ?is p>agraph %all n apply to any am\nt all[able z a d$uction "u section #agd7;a74 4 7#b7 ,all[ance ( c]ta9 rese>*-relat$ cr$its ,subp>agraph 7,b7 ( section #ch7;c77#d7 ( su* ,code is am5d$ by r$esignat+ clauses 7ii7 ?r\gh 7ix7 z clauses 7iii7 ?r\gh 7x71 respectively1 & by ins]t+ aft] clause 7i7 ! foll[+ new clause3 7ii7 ! cr$it ( an individual taxpay] det]m9$ "u section #da to ! ext5t attributable to a specifi$ m$ical rese>* small bus9ess pass-?ru entity 7z def9$ 9 section #dfi7;c77#d771 4 7d7 ,exception to limitation on pass-,?ru ( rese>* cr$it ,subsection 7g7 ( section #da ( su* ,code is am5d$ by add+ at ! end ! foll[+3 ,p>agraphs 7#b7 & 7#d7 %all n apply ) respect to any specifi$ m$ical rese>* small bus9ess pass-?ru entity 7z def9$ 9 section #dfi7;c77#d7744 7e7 ,effective date ,! am5dm5ts made by ?is section %all apply to losses & cr$its aris+ 9 taxable ye>s beg9n+ aft] ,decemb] #ca1 #bjbj4