,i #aahth ,,congress #ast ,session ,h4 ,r4 #ehba ,,in ,,the ,,house ,,of ,,representatives ,september #bh1 #bjbc,mr4 ,thompson of ,california 7for himself and ,mr4 ,kelly of ,pennsylvania7 introduced the following bill2 which was referred to the ,committee on ,ways and ,means ,a ,,bill ,to amend the ,internal ,revenue ,code of #aihf to provide for a credit against tax for expenses for translational research regarding neurodegenerative diseases and psychiatric conditions4 #a4 ,short title ,this ,act may be cited as the ,mental ,health ,research ,accelerator ,act of #bjbc4 #b4 ,expenses for certain translational 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;,,bb4 ,expenses for certain translational research 7a7 ,allowance of credit ,for purposes of section #ch1 the translational research credit determined under this section for any taxable year shall be an amount equal to #be 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 conditions4 7b7 ,limitation 7#a7 ,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 years4 7#b7 ,aggregate national limitation 7,a7 ,in general ,there is a translational research credit limitation for each calendar year as follows3 7i7 #a1jjj1jjj1jjj for #bjbd4 7ii7 #b1jjj1jjj1jjj for each of years #bjbe through #bjbh4 7iii7 #a1jjj1jjj1jjj for #bjbi4 7,b7 ,allocation of limitation ,as expeditiously as possible1 the ,secretary shall allocate among applicants selected by the ,secretary the limitation under subparagraph 7,a7 for all years4 7,c7 ,carryover of unused limitation ,if the translational research credit limitation for any calendar year exceeds the aggregate amount allocated under subparagraph 7,a7 for such year1 such limitation for the succeeding calendar year shall be increased by the amount of such excess4 7,d7 ,regulations ,the ,secretary shall 7in consultation with the ,secretary of ,health and ,humans ,services1 the ,administrator of the ,food and ,drug ,administration1 and the ,director of the ,national ,institutes of ,health7 prescribe regulations as may be necessary to carry out the purposes of this section1 including establishing the application process and the criteria for allocation under subparagraph 7,b74 ,such regulations shall include the following3 7i7 ,amounts shall be allocated based on scientific merit4 7ii7 ,projects should include all phases of the research continuum4 7iii7 ,an emphasis on new therapeutics and devices targeted at central nervous system disorders and in the neurological and psychiatric fields4 7iv7 ,standards for repurposing existing drugs and devices for new purposes4 7v7 ,standards for public-private partnerships with priority given to collaborative efforts and sharing of intellectual property held by tax exempt entities involved in the project4 7c7 ,transfer of credit 7#a7 ,in general ,if1 with respect to a credit under subsection 7a7 for any taxable year-- 7,a7 a tax-exempt entity would be the taxpayer 7but for this paragraph71 and 7,b7 such entity elects the application of this paragraph for such taxable year with respect to all 7or any portion specified in such election7 of such credit1 the eligible project partner specified in such election1 and not the tax-exempt entity1 shall be treated as the taxpayer for purposes of this title with respect to such credit 7or such portion thereof74 7#b7 ,definitions ,for purposes of this subsection-- 7,a7 ,tax-exempt entity ,the term tax-exempt entity means-- 7i7 a ,federal1 ,state1 ,indian tribal government 7as defined in section #ggja7;a77#d771 or local government entity1 or any political subdivision1 agency1 or instrumentality thereof1 and 7ii7 an organization described in section #eja7;c77#c7 and exempt from tax under section #eja7;a74 7,b7 ,eligible project partner ,the term eligible project partner means any person who-- 7i7 is identified in the application for allocation of credit under this section as a project partner1 and 7ii7 participates in1 or provides funding for1 the research with respect to which limitation was allocated by the ,secretary under subsection 7b74 7#c7 ,special rules 7,a7 ,in general ,in the case of a credit under subsection 7a7 which is determined at the partnership level-- 7i7 for purposes of paragraph 7#a77;,a71 a tax-exempt entity shall be treated as the taxpayer with respect to such entity's distributive share of such credit1 and 7ii7 the term eligible project partner shall include any partner of the partnership4 7,b7 ,taxable year in which credit taken into account ,in the case of any credit 7or portion thereof7 with respect to which an election is made under paragraph 7#a71 such credit shall be taken into account in the first taxable year of the eligible project partner ending with1 or after1 the tax-exempt entity's taxable year with respect to which the credit was determined4 7d7 ,coordination with credit for increasing research expenditures 7#a7 ,in general ,except as provided in paragraph 7#b71 any expenses taken into account under this section shall not be taken into account for purposes of determining the credit allowable under section #da for such taxable year4 7#b7 ,expenses included in determining base period research expenses ,any expenses taken into account under this section 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 ,termination ,no credit shall be allowed under this section for any taxable year beginning after ,december #ca1 #bjcc4 4 7b7 ,deduction disallowed ,section #bhj;,c of such ,code is amended by adding at the end the following new subsection3 7i7 ,credit for certain translational research ,no deduction shall be allowed for that portion of the expenses taken into account under section #de;,,bb 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 section4 4 7c7 ,credit made 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#dj71 by striking the period at the end of paragraph 7#da7 and inserting 1 plus1 and by adding at the end the following new paragraph3 7#db7 the credit determined under section #de;,,bb4 4 7d7 ,clerical amendment ,the table of sections for subpart ,d of part ,,iv of subchapter ,a of chapter #a of such ,code is amended by adding at the end the following new item3 ,sec4 #de;,,bb4 ,expenses for certain translational research44 7e7 ,effective date ,the amendments made by this subsection shall take effect on the date of the enactment of this ,act4