H.R.7504 - To amend the Internal Revenue Code of 1986 to make a portion of research credit refundable for certain small businesses engaging in specified medical research was cosponsored by Mike Kelly.
It was referred to the Ways and Means committee.
This bill allows for the refundability of a portion of the tax credit for increasing research activities for small businesses (gross receipts not exceeding $1 million) engaged in specified medical research. Under the Public Health Service Act, specified medical research means research with respect to qualified countermeasures (i.e., a drug, biological product, or device for preventing harm from any biological agent or from a condition that may result in adverse health consequences or death).
117th CONGRESS 2d Session |
To amend the Internal Revenue Code of 1986 to make a portion of research credit refundable for certain small businesses engaging in specified medical research.
April 14, 2022
Mr. Buchanan (for himself and Mr. Kelly of Pennsylvania) introduced the following bill; which was referred to the Committee on Ways and Means
To amend the Internal Revenue Code of 1986 to make a portion of research credit refundable for certain small businesses engaging in specified medical research.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. Refundable portion of research credit for small businesses engaging in specified medical research.
(a) In general.—Section 41 of the Internal Revenue Code of 1986 is amended by adding at the end the following new subsection:
“(i) Refundable portion for small businesses engaging in specified medical research.—
“(1) IN GENERAL.—At the election of a medical research small business, the portion of the credit determined under this section for the taxable year which is properly allocable to specified medical research shall be treated (other than for purposes of section 280C) as a credit allowed under subpart C (and not this subpart).
“(2) MEDICAL RESEARCH SMALL BUSINESS.—For purposes of this subsection, the term ‘medical research small business’ means any domestic C corporation—
“(A) which conducts any specified medical research during the taxable year, and
“(B) the gross receipts of which (determined under the rules of subsection (c)) for the taxable year do not exceed $1,000,000.
“(3) SPECIFIED MEDICAL RESEARCH.—For purposes of this subsection, the term ‘specified medical research’ means any qualified research with respect to qualified countermeasures (as defined in section 319F–1(a)(2) of the Public Health Service Act (42 U.S.C. 247d–6a(a)(2)).
“(4) ELECTION.—Any election under this subsection for any taxable year—
“(A) shall specify the amount of the credit to which such election applies,
“(B) shall be made on or before the due date (including extensions) of the return of tax for the taxable year,
“(C) may not be made for any taxable year with respect to any portion of the credit determined under this section with respect to which an election is made under subsection (h), and
“(D) may be revoked only with the consent of the Secretary.
“(5) REGULATIONS.—The Secretary shall prescribe such regulations for purposes of this subsection as may be necessary or appropriate for determining proper allocation to specified medical research of the portion of any credit allowed to a taxpayer for a taxable year under this section.”.
(b) Conforming amendment.—Section 1324(b) of title 31, United States Code, is amended by inserting “41(i),” after “6428,”.
(c) Effective date.—The amendments made by this section shall apply to taxable years beginning after December 31, 2021.
You can read the bill here.
