119-hr2085

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2085 Introduced in House

    (IH) ]

<DOC>

119th CONGRESS
 1st Session
 H. R. 2085

 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

 March 11, 2025

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 2025''.

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 2026.
 ``
            (ii) $2,000,000,000 for each of years 
 2027 through 2030.
 ``
            (iii) $1,000,000,000 for 2031.
 ``
        (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, 2035.''.

    (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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