[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[H.R. 476 Introduced in House (IH)]
<DOC>
117th CONGRESS
1st Session
H. R. 476
To strengthen American economic resiliency and equitably expand
economic opportunity by launching a national competition, promoting
State and local strategic planning, encouraging innovation by the
public and private sectors, and by substantially investing Federal
resources in research and development.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
January 25, 2021
Mr. Morelle (for himself, Ms. Sewell, Mr. Phillips, Ms. Norton, and Mr.
Case) introduced the following bill; which was referred to the
Committee on Science, Space, and Technology, and in addition to the
Committees on Small Business, Education and Labor, Energy and Commerce,
Transportation and Infrastructure, Ways and Means, and Financial
Services, for a period to be subsequently determined by the Speaker, in
each case for consideration of such provisions as fall within the
jurisdiction of the committee concerned
_______________________________________________________________________
A BILL
To strengthen American economic resiliency and equitably expand
economic opportunity by launching a national competition, promoting
State and local strategic planning, encouraging innovation by the
public and private sectors, and by substantially investing Federal
resources in research and development.
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 ``Innovation Centers Acceleration
Act''.
SEC. 2. DEFINITIONS.
In this Act:
(1) Committee.--The term ``Committee'' means the Innovation
Center Selection Committee established under section 3.
(2) Eligible area.--The term ``eligible area'' means a
metropolitan statistical area that--
(A) has a population of not less than 500,000; and
(B) is not designated as an established tech hub.
(3) Established tech hub.--The term ``established tech
hub'' means the 9 metropolitan statistical areas in the United
States with the largest total number of innovation sector jobs
in 2019.
(4) Hispanic-serving institution.--The term ``Hispanic-
serving institution'' has the meaning given the term in section
502 of the Higher Education Act of 1965 (20 U.S.C. 1101a).
(5) Historically black college or university.--The term
``historically Black college or university'' has the meaning
given the term ``part B institution'' in section 322 of the
Higher Education Act of 1965 (20 U.S.C. 1061).
(6) Innovation center.--The term ``innovation center''
means an eligible area designated by the Committee under
section 3(e).
(7) Innovation sector job.--The term ``innovation sector
job'' means a job in the following research and development
sectors, as categorized under the North American Industry
Classification System:
(A) Basic chemical manufacturing (3251).
(B) Pesticide, fertilizer, and other agricultural
chemical manufacturing (3253).
(C) Pharmaceutical and medicine manufacturing
(3254).
(D) Computer and peripheral equipment manufacturing
(3341).
(E) Communications equipment manufacturing (3342).
(F) Semiconductor and other electronic components
manufacturing (3344).
(G) Navigational, measuring, electromedical, and
control instruments manufacturing (3345).
(H) Aerospace product and parts manufacturing
(3364).
(I) Software publishers (5112).
(J) Satellite telecommunications (5174).
(K) Data processing, hosting, and related services
(5182).
(L) Other information services (5191).
(M) Scientific research and development services
(5417).
(8) STEM.--The term ``STEM'' means science, technology,
engineering, and mathematics.
SEC. 3. INNOVATION CENTER SELECTION COMMITTEE.
(a) Establishment.--There is established the Innovation Center
Selection Committee, which shall--
(1) establish the global competitive edge of the United
States in the 21st century across a range of innovation sectors
critical to national and economic security;
(2) enable 9 metropolitan statistical areas in the United
States to become innovation centers for global innovation
leadership and models for inclusive growth, equal opportunity,
and rising living standards for disadvantaged populations;
(3) inspire, within metropolitan statistical areas in the
United States across the country, new and constructive
collaboration among local, State, and Federal government
entities, academia, and private industry by issuing a call for
innovation center proposals with clear, ambitious objectives;
(4) carry out a transparent, competitive, fair, and
rigorous process for selecting innovation centers;
(5) ensure the transparent, efficient and effective use of
taxpayer funds; and
(6) empirically evaluate the effectiveness of innovation
centers through release of publicly available reports and data.
(b) Membership.--
(1) Composition.--
(A) Voting members.--The Committee shall be
composed of the following voting members:
(i) The Secretary of Commerce, who shall
serve as chairperson of the Committee.
(ii) The Administrator of the Small
Business Administration.
(iii) The Deputy Secretary for Housing and
Urban Development.
(iv) The Director of the Community
Development Financial Institution Fund.
(v) The Director of the National Science
Foundation.
(vi) The Director of the National Institute
of Standards and Technology.
(vii) The Director of the National Economic
Council.
(viii) The Assistant Secretary of Commerce
for Economic Development.
(ix) The Assistant Secretary for Employment
and Training.
(x) The Director of the Office of Science
and Technology Policy.
(xi) The Under Secretary of Defense for
Research and Engineering.
(xii) The Under Secretary for Science of
the Department of Energy.
(xiii) The Director of the National
Institutes of Health.
(xiv) The Under Secretary for Science and
Technology of the Department of Homeland
Security.
(xv) The Administrator of the National
Aeronautics and Space Administration.
(2) Nonvoting members.--
(A) In general.--The Committee shall have 8
nonvoting members, of which, from among leaders of
labor organizations or research institutions, or
leaders from private industry or professional
societies--
(i) 2 shall be appointed by the majority
leader of the Senate;
(ii) 2 shall be appointed by the minority
leader of the Senate;
(iii) 2 shall be appointed by the Speaker
of the House of Representatives; and
(iv) 2 shall be appointed by the minority
leader of the House of Representatives.
(B) Term.--The nonvoting members appointed under
subparagraph (A)--
(i) shall serve for a term of 5 years; and
(ii) may be reappointed to subsequent
terms.
(C) Vacancies.--A vacancy in the nonvoting
membership of the Committee shall be filled in the same
manner as the original appointment, but the individual
appointed to fill the vacancy shall serve only for the
unexpired portion of the term for which the
individual's predecessor was appointed.
(D) Deadline for appointments.--The nonvoting
members of the Committee shall be appointed under this
paragraph not later than 30 days after the date of
enactment of this Act.
(3) Initial meeting.--Not later than 30 days after the date
on which all members of the Committee are appointed, the
Committee shall hold its first meeting.
(c) Compensation.--A nonvoting member of the Committee appointed
under subsection (b)(2) shall be allowed travel expenses, including per
diem in lieu of subsistence, at rates authorized for employees of
agencies under subchapter I of chapter 57 of title 5, United States
Code, while away from their homes or regular places of business in the
performance of services for the Committee.
(d) Staff.--
(1) In general.--The Committee may appoint a staff director
and other personnel as necessary to carry out the duties of the
Committee.
(2) Member agencies.--The Department of Commerce, the
Department of Labor, the Department of the Treasury, the
Department of Housing and Urban Development, the Department of
Defense, the Department of Energy, the Department of Health and
Human Services, the Small Business Administration, and the
Department of Transportation shall provide necessary staffing
support to the Committee, as determined by the Committee.
(e) Selection of Innovation Centers.--
(1) In general.--The Committee shall select 9 eligible
areas to serve as innovation centers and receive the Federal
innovation supports described in section 4.
(2) Application.--
(A) Request for proposals.--Not later than 3 months
after the date of enactment of this Act, the Committee
shall issue a request for applications from eligible
entities.
(B) Submission.--Each eligible area desiring to be
selected as an innovation center shall submit to the
Committee an application through a proposal committee
created by the eligible area, which shall include
representation from each State located in the eligible
area and each municipal government representing not
less than 200,000 individuals located in the eligible
area.
(3) Selection criteria.--In selecting innovation centers
under this section, the Committee shall evaluate each applicant
based on--
(A) the performance of the applicant in--
(i) STEM spending per capita;
(ii) the number of patents per 100,000
residents;
(iii) the share of the population with a
Bachelor of Arts degree or a higher degree; and
(iv) the number of STEM university degrees
per capita;
(B) a plan to use data-driven strategies to promote
innovation-based, advanced sector takeoff, focused on
local interplay of university, Federal research
institution, and industry core competencies;
(C) a plan to increase innovation readiness,
including expanding research and technology development
facilities and developing the local STEM workforce,
including through partnerships with entities with
demonstrated success of administering apprenticeship
and other workforce development models;
(D) a plan to build or improve areas that attract
and support workers and firms;
(E) a plan to foster racial equity and inclusive
growth, including by leveraging minority serving
institutions, preventing gentrification, combatting
segregation, promoting the inclusion of
underrepresented residents, and ensuring affordable
housing options;
(F) a plan to invest the financial resources of the
applicant;
(G) a plan to partner with local workforce
development boards to scale up training to meet new
workforce demands;
(H) a plan to incorporate and bring growth and
opportunity to a broad geographic area beyond the
limits of the metropolitan statistical area, including
rural areas, through improved transportation, high
speed internet access, other investments, and
partnerships; and
(I) the relative potential for the selection of the
innovation center to reverse a decline, or accelerate
growth, in innovation sector jobs.
(4) Geographic diversity.--In selecting innovation centers
under this section, the Committee shall ensure a broad
geographic representation of the United States.
(5) Site visits.--The Committee may conduct site visits to
eligible areas that are finalists for selection as an
innovation center.
(6) Timeline for selection.--The Committee shall, by secret
ballot, vote to select the 9 innovation centers not later than
12 months after the date of enactment of this Act.
(7) Evaluation and renewal.--
(A) In general.--Not later than 1 year after the
date of enactment of this Act, the Committee shall
establish evaluation and renewal criteria to measure--
(i) the progress of an innovation center
toward becoming a center for technology
innovation;
(ii) the effectiveness of an innovation
center in translating innovation sector growth
into broadly shared economic opportunity within
the innovation center; and
(iii) the ethical and efficient use of
Federal funds.
(B) Report to congress.--Beginning in the third
full year following the date of enactment of this Act,
and not less frequently than once every 3 years
thereafter, the Committee shall submit to Congress and
each agency represented on the Committee, and make
publicly available, a report on the progress of each
innovation center in meeting the objectives described
in paragraph (3).
(C) Evaluation.--
(i) In general.--During the third year in
which an innovation center is in existence, the
Committee shall conduct an evaluation based on
established benchmarks for achieving the
objectives described in paragraph (3) to
determine whether the designation as an
innovation center shall be renewed for 3
additional years.
(ii) Failure to meet benchmarks.--An
innovation center that fails to meet a majority
of the benchmarks established under clause (i)
shall not be renewed as an innovation center.
(D) Renewal limit.--An innovation center shall be
designated as such for a period of 3 years, and the
Committee may renew the designation for not more than 2
additional 3-year terms.
(f) Final Report.--Not later than 1 year after the date on which
all innovation centers have exhausted their designations and renewals
as an innovation center, the Committee shall submit to Congress and
each agency represented on the Committee, and make publicly available,
a final cumulative report on the efficacy of the program.
(g) Authorization of Appropriations.--There is authorized to be
appropriated to the Committee for travel and administrative expenses
related to carrying out the duties of the Committee--
(1) $5,000,000 for each of the first 2 fiscal years
beginning after the date of enactment of this Act; and
(2) $1,000,000 for each of the 8 fiscal years following the
2 fiscal years described in paragraph (1).
SEC. 4. FEDERAL INNOVATION SUPPORTS.
(a) In General.--An innovation center shall be eligible for the
Federal innovation supports described in this section.
(b) Direct Federal Investment.--
(1) National science foundation research funding.--
(A) Funding goal.--The Director of the National
Science Foundation shall pursue a goal of awarding
through a rigorous selection process, for each
innovation center that gets its designation renewed
continually for 3 terms, a total of $1,250,000,000 in
grant funds to entities located in that innovation
center by the end of the 9th year of the designation of
that innovation center, by proportionally increasing
the total amount of the grants awarded over the 9-year
period.
(B) Additional funding.--In addition to awarding
grants in pursuit of the goal described in subparagraph
(A), the Director shall award grants--
(i) with a focus on universities or other
research institutions that commit to expanding
research and workforce capabilities aligned
with industries and technologies and with a
preference for universities or institutions
that are--
(I) concentrated in an innovation
center; or
(II) key to national challenges; or
(ii) that include industry-university
research partnership programs.
(C) Tracking.--In each year, the Director of the
National Science Foundation shall track the aggregate
amount of grants awarded by the Director to entities in
that year, disaggregated by innovation center.
(D) Authorization of additional appropriations.--
There are authorized to be appropriated to carry out
this paragraph, in addition to amounts that would
otherwise be appropriated in a year for the National
Science Foundation, amounts as follows:
(i) For fiscal year 2022, $0.
(ii) For fiscal year 2023, $1,110,000,000.
(iii) For fiscal year 2024, $2,220,000,000.
(iv) For fiscal year 2025, $3,330,000,000.
(v) For fiscal year 2026, $4,440,000,000.
(vi) For fiscal year 2027, $5,550,000,000.
(vii) For fiscal year 2028, $6,660,000,000.
(viii) For fiscal year 2029,
$7,770,000,000.
(ix) For fiscal year 2030, $8,880,000,000.
(x) For fiscal year 2031, $9,990,000,000.
(2) National science foundation graduate research
fellowships and undergraduate research programs.--
(A) Expansion.--The Director of the National
Science Foundation shall expand graduate research
fellowships and programs focused on undergraduate
research opportunities, including--
(i) research experiences for
undergraduates;
(ii) advanced technological education
programs;
(iii) historically Black colleges and
universities undergraduate programs; and
(iv) Hispanic-serving institutions.
(B) Allocation.--The amounts expended by the
Director to carry out subparagraph (A), 35 percent of
such amounts shall be expended for the expansion of
graduate research fellowships and undergraduate
research opportunities in innovation centers.
(C) Authorization of appropriations.--There are
authorized to be appropriated to carry out this
paragraph amounts as follows:
(i) In fiscal year 2023, $57,000,000.
(ii) In fiscal year 2024, $114,000,000.
(iii) In fiscal year 2025, $171,000,000.
(iv) In fiscal year 2026, $228,000,000.
(v) In fiscal year 2027, $285,000,000.
(vi) In fiscal year 2028, $342,000,000.
(vii) In fiscal year 2029, $399,000,000.
(viii) In fiscal year 2030, $456,000,000.
(ix) In fiscal year 2031, $513,000,000.
(3) National science foundation industry-university
cooperative research centers program.--The Director of the
National Science Foundation shall consider the location of a
university within an innovation center to be a strength for
purposes of selection criteria under the Industry-University
Cooperative Research Centers program.
(4) Small business innovation research.--Section 9(j) of
the Small Business Act (15 U.S.C. 638(j)) is amended by adding
at the end the following:
``(5) Modifications relating to innovation centers.--
``(A) Definition.--In this paragraph, the term
`innovation center' has the meaning given the term in
section 2 of the Innovation Centers Acceleration Act.
``(B) Requirement.--Not later than 6 months after
the date of enactment of the Innovation Centers
Acceleration Act, the Administrator shall modify the
policy directives issued pursuant to this subsection--
``(i) to provide that, during the 10-year
period beginning on the date of enactment of
the Innovation Centers Acceleration Act, the
location of a small business concern within an
innovation center shall be considered a
strength under the selection criteria for Phase
I and Phase II proposals under the SBIR program
of a Federal agency; and
``(ii) to require the Administrator to
track and publish on an annual basis the total
value of SBIR awards made to small business
concerns located in innovation centers.''.
(5) Manufacturing usa program.--
(A) Definitions.--In this paragraph:
(i) Manufacturing usa program.--The term
``Manufacturing USA Program'' means the program
established under section 34(b) of the National
Institute of Standards and Technology Act (15
U.S.C. 278s(b)).
(ii) Manufacturing usa institute.--The term
``Manufacturing USA institute'' means an
institute described in section 34(d) of the
National Institute of Standards and Technology
Act (15 U.S.C. 278s(d)).
(B) Expansion.--Under section 34(e) of the National
Institute of Standards and Technology Act (15 U.S.C.
278s(e)), the Secretary shall award financial
assistance to assist in the establishment and support
of--
(i) 9 new Manufacturing USA institutes; or
(ii) a combination of satellites to
existing Manufacturing USA institutes or new
Manufacturing USA institutes.
(C) Selection.--
(i) In general.--Manufacturing USA
institutes and satellites shall be identified
and funded under subparagraph (B) from among
proposals submitted to the Secretary for
purposes of this paragraph.
(ii) Proposal elements.--Any proposal
submitted to the Secretary in accordance with
clause (i) shall include--
(I) a plan for the institute or
satellite concerned to support or
otherwise align with existing
Manufacturing USA institutes, including
through--
(aa) membership in, or
partnership or formal
affiliation with, an existing
Manufacturing USA institute; or
(bb) a plan to reach a
segment, population, or
geographic area not already
covered by or engaged with
existing Manufacturing USA
institutes; and
(II) a plan for cost-sharing for
the activities of the institute or
satellite concerned, including the
sources of funds and amounts to be
contributed.
(iii) Selection of satellites.--Any
selection of a satellite to an existing
Manufacturing USA institute under this
subparagraph shall be made by the Secretary in
consultation with exiting Manufacturing USA
institutes.
(iv) Priority relating to innovation
centers.--In identifying and funding a new
Manufacturing USA institute or a combination of
satellites to existing or new Manufacturing USA
institutes under subparagraph (B), the
Secretary shall give priority to proposals for
identification and funding of Manufacturing USA
institutes in an innovation center, in whole or
in substantial part.
(v) Prevention of overlap and redundancy.--
In identifying and funding Manufacturing USA
institutes or satellites to Manufacturing USA
institutes under subparagraph (B), the
Secretary shall, to the extent practicable,
avoid overlap or redundancy in mission,
technology focus, or funding with existing
Manufacturing USA institutes.
(D) Amount of financial assistance.--
(i) New manufacturing usa institutes.--For
each Manufacturing USA institute identified and
funded under subparagraph (B), the Secretary
may expend up to $70,000,000 during the period
of fiscal years 2022 through 2033.
(ii) Manufacturing usa institute
satellites.--For each Manufacturing USA
institute satellite or expansion supported
under subparagraph (B), the Secretary may
expend up to $25,000,000 during the period of
fiscal years 2022 through 2033.
(E) Allocation.--Not less than 33 percent of the
financial assistance provided under subparagraph (B)
shall be for identifying and funding Manufacturing USA
institutes in innovation centers.
(6) Manufacturing universities.--The Secretary of Commerce
and the Secretary of Defense shall consider the location of a
university within an innovation center to be a strength for
purposes of selection criteria under the Manufacturing
Universities Program.
(7) Minority business development agency.--
(A) In general.--The National Director of the
Minority Business Development Agency may, acting
through the Inner City Innovation Hub program, award
not more than 2 grants to eligible entities located
within each innovation center.
(B) Amount of grant.--A grant awarded under
subparagraph (A) may not exceed $1,500,000.
(C) Authorization of appropriations.--There are
authorized to be appropriated to the National Director
of the Minority Business Development Agency $27,000,000
for each of fiscal years 2023 through 2031.
(8) Additional regional innovations strategies grants.--
(A) Definition of innovation center.--Section 4 of
the Stevenson-Wydler Technology Innovation Act of 1980
(15 U.S.C. 3703) is amended by adding at the end the
following:
``(12) `Innovation center' has the meaning given the term
in section 2 of the Innovation Centers Acceleration Act.''.
(B) Grants.--Section 27 of the Stevenson-Wydler
Technology Innovation Act of 1980 (15 U.S.C. 3722) is
amended--
(i) in subsection (c)--
(I) in paragraph (1), by striking
``As part of the program'' and
inserting the following:
``(A) In general.--As part of the program''; and
(II) by adding at the end the
following:
``(B) Innovation center grants.--As a part of the
program established pursuant to subsection (b), the
Assistant Secretary of Commerce for Economic
Development may award grants, on a competitive basis,
to eligible recipients described in subsection
(a)(1)(D) located within innovation centers.''; and
(ii) in subsection (h)--
(I) by striking ``From amounts
appropriated'' and inserting the
following:
``(1) In general.--From amounts appropriated''; and
(II) by adding at the end the
following:
``(2) Innovation center grants.--There are authorized to be
appropriated to the Secretary to award grants under subsection
(c)(1)(B) $5,000,000 for each of fiscal years 2023 through
2031.''.
(9) Workforce investment activities in consultation with
innovation centers.--
(A) Youth workforce activities.--Section 129 of the
Workforce Innovation and Opportunity Act (29 U.S.C.
3164) is amended by adding at the end the following:
``(d) Youth Workforce Activities in Consultation With Innovation
Centers.--
``(1) Funding.--
``(A) In general.--Using funds made available under
section 136(d), the Secretary shall provide a grant to
each local area that--
``(i) is within the area covered by an
innovation center selected under subsection (e)
of section 3 of the Innovation Centers
Acceleration Act; and
``(ii) the Innovation Center Selection
Committee established under that section 3
certifies is working in partnership with that
innovation center.
``(B) Amount.--The amount of the grant for a fiscal
year shall be equal to the allocation that the local
area receives under section 128(b) for that fiscal
year.
``(C) Prohibition.--The Secretary may not reduce
the amount that any local area receives through an
allocation under section 128(b) because local areas
described in subparagraph (A) receive grants under this
subsection.
``(2) Use of funds.--The local area shall use the grant
funds in accordance with subsection (c), after consultation
with the innovation center.''.
(B) Adult and dislocated worker employment and
training activities.--Section 134 of the Workforce
Innovation and Opportunity Act (29 U.S.C. 3174) is
amended by adding at the end the following:
``(e) Adult and Dislocated Worker Employment and Training
Activities in Consultation With Innovation Centers.--
``(1) Funding.--
``(A) In general.--Using funds made available under
section 136(d), the Secretary shall provide a grant to
each local area that--
``(i) is within the area covered by an
innovation center selected under subsection (e)
of section 3 of the Innovation Centers
Acceleration Act; and
``(ii) the Innovation Center Selection
Committee established under that section 3
certifies is working in partnership with that
innovation center.
``(B) Amount.--The amount of the grant for a fiscal
year shall be equal to the sum of the allocations that
the local area receives under paragraphs (1) and (2) of
section 133(b) for that fiscal year.
``(C) Prohibition.--The Secretary may not reduce
the amount that any local area receives through an
allocation under paragraph (1) or (2) of section
133(b)(3) because local areas described in subparagraph
(A) receive grants under this subsection.
``(2) Use of funds.--The local area shall use the grant
funds in accordance with subsections (b), (c), and (d), after
consultation with the innovation center.''.
(C) Authorization of appropriations.--Section 136
of the Workforce Innovation and Opportunity Act (29
U.S.C. 3181) is amended--
(i) in subsections (a), (b), and (c), by
inserting before the first comma the following:
``(except for activities funded from amounts
appropriated under subsection (d))''; and
(ii) by adding at the end the following:
``(d) Workforce Investment Activities in Consultation With
Innovation Centers.--There are authorized to be appropriated to carry
out sections 129(d) and 134(e) such sums as may be necessary for each
fiscal year that an innovation center designation is in effect.''.
(10) Additional stem apprenticeship grants.--Section 28 of
the Stevenson-Wydler Technology Innovation Act of 1980 (15
U.S.C. 3723) is amended by adding at the end the following:
``(e) Innovation Center Grants.--
``(1) Definition of eligible entity.--In this subsection,
the term `eligible entity' means an eligible recipient that
is--
``(A) described in subsection (b)(4); and
``(B) located within an innovation center.
``(2) Grants authorized.--The Assistant Secretary of
Commerce for Economic Development shall provide to not less
than 1 eligible entity located in each innovation center a
grant to develop infrastructure to expand STEM apprenticeship
programs.
``(3) Amount; renewal.--
``(A) Amount.--The amount of a grant under
paragraph (2) shall be not more than $5,000,000 for
each year over a 3-year period.
``(B) Renewal.--The Secretary may provide an
eligible entity that receives a grant under paragraph
(2) not more than 2 additional grants under that
paragraph.
``(4) Preference.--The Assistant Secretary of Commerce for
Economic Development shall give preference for a grant under
this subsection to an eligible entity with demonstrated success
of administering apprenticeship and other workforce development
models and that demonstrates a commitment to serving
individuals--
``(A) from underrepresented populations; or
``(B) who face barriers to employment, including--
``(i) long-term unemployment;
``(ii) past incarceration; or
``(iii) veteran or disability status.
``(f) Authorization of Appropriations.--There are authorized to be
appropriated to carry out this section $50,000,000 for each of fiscal
years 2023 through 2031.''.
(11) National institutes of health research funding.--
(A) Funding goal.--The Director of the National
Institutes of Health shall pursue a goal of awarding
through a rigorous selection process and subject to
peer review, for each innovation center that gets its
designation renewed continually for 3 terms, a total of
$1,250,000,000 in meritorious research awards in
priority areas of biomedical science to entities
located in that innovation center by the end of the 9th
year of the designation of that innovation center, by
proportionally increasing the total amount of the
grants, contracts, or other transactions awarded in
each innovation center each year over the 9-year
period.
(B) Additional funding.--In addition to awarding
grants, contracts, or other transactions in pursuit of
the goal described in subparagraph (A), the Director of
the National Institutes of Health shall award grants--
(i) with a focus on universities or other
research institutions that commit to expanding
research capabilities aligned with industries
and technologies and with a preference for
universities or institutions that are--
(I) concentrated in an innovation
center; or
(II) key to national challenges; or
(ii) that include industry-university
research partnership programs.
(C) Tracking.--In each year, the Director of the
National Institutes of Health shall track the aggregate
amount of grants, contracts, or other transactions
awarded by the Director to entities in that year,
disaggregated by innovation center.
(D) Authorization of additional appropriations.--
There are authorized to be appropriated to carry out
this paragraph, in addition to amounts that would
otherwise be appropriated in a year for the National
Institutes of Health, amounts as follows:
(i) For fiscal year 2022, $0.
(ii) For fiscal year 2023, $140,000,000.
(iii) For fiscal year 2024, $280,000,000.
(iv) For fiscal year 2025, $420,000,000.
(v) For fiscal year 2026, $560,000,000.
(vi) For fiscal year 2027, $700,000,000.
(vii) For fiscal year 2028, $840,000,000.
(viii) For fiscal year 2029, $980,000,000.
(ix) For fiscal year 2030, $1,120,000,000.
(x) For fiscal year 2031, $1,260,000,000.
(c) Tax Incentives.--
(1) New markets tax credit allocations.--Subsection (f) of
section 45D of the Internal Revenue Code of 1986 is amended by
adding at the end the following new paragraph:
``(4) Special allocation for innovation centers.--In the
case of any calendar year beginning after 2021--
``(A) the limitation under paragraph (1) (including
in calendar years for which the limitation under
paragraph (1) is zero) shall be increased by
$50,000,000 for each metropolitan statistical area
which is designated as an innovation center under
section 3(e) of the Innovation Centers Acceleration Act
for such calendar year, and
``(B) the additional limitation under subparagraph
(A) shall be divided equally among such innovation
centers and allocated (as provided in paragraph (2))
among qualified community development entities in such
innovation centers.''.
(2) Research credit.--
(A) In general.--Section 41 of such Code is amended
by adding at the end the following new subsection:
``(i) Special Rules Relating to Innovation Centers.--
``(1) In general.--In the case of--
``(A) any qualified research expenses paid or
incurred for qualified services or qualified research,
``(B) any basic research payments for basic
research, and
``(C) amounts paid or incurred by the taxpayer in
carrying on any trade or business of the taxpayer
(including as contributions) to an energy research
consortium for energy research,
during the taxable year at a location in a metropolitan
statistical area which is an innovation center for such taxable
year, this section shall be applied as provided in paragraphs
(2) and (3).
``(2) Credit rate.--Subsection (a) shall be applied by
substituting `30 percent' for `20 percent' each place it
appears.
``(3) Alternative simplified credit.--Subsection (c)(4)
shall be applied--
``(A) by substituting `21 percent' for `14 percent'
in subparagraph (A), and
``(B) by substituting `9 percent' for `6 percent'
in subparagraph (B)(ii).
``(4) Credit for qualified small businesses.--In the case
of a trade or business located primarily within a metropolitan
statistical area which is an innovation center for the taxable
year, subsection (h) shall be applied--
``(A) by substituting `$15,000,000' for
`$5,000,000' in paragraph (3)(A)(i)(I),
``(B) by substituting `8-taxable-year' for `5-
taxable-year' in paragraph (3)(A)(i)(II), and
``(C) by substituting `$500,000' for `$250,000'
both places it appears in paragraphs (4)(B)(i) and
(5)(B)(ii).
``(5) Innovation center.--For purposes of this subsection,
for any taxable year, the term `innovation center' means a
metropolitan statistical area with a designation as an
innovation center under section 3(e) of the Innovation Centers
Acceleration Act in effect for calendar years beginning in such
year.
``(6) Termination.--This subsection shall not apply to
expenses paid or incurred after December 31, 2030.''.
(B) Training included as research expenses.--
(i) In general.--Paragraph (1) of section
41(b) of such Code is amended--
(I) by striking ``and'' at the end
of subparagraph (A),
(II) by striking the period at the
end of subparagraph (B) and inserting
``, and'', and
(III) by adding at the end the
following new subparagraph:
``(C) employee training expenses.''.
(ii) Employee training expenses.--
Subsection (b) of section 41 of such Code is
amended--
(I) by redesignating paragraph (4)
as paragraph (5), and
(II) by inserting after paragraph
(3) the following new paragraph:
``(4) Employee training expenses.--
``(A) In general.--The term `employee training
expenses' means any wages paid or incurred to an
employee in connection with training for the employee
to perform qualified services described in clause (i)
or (ii) of paragraph (2)(B). Such term does not include
wages paid or incurred in connection with general
employer training which does not specifically pertain
to such qualified services.
``(B) Wages, etc.--For purposes of this paragraph--
``(i) In general.--The term `wages' shall
not include any amount taken into account under
paragraph (2)(A)(i).
``(ii) Rules.--The rules of paragraph
(2)(D) shall apply.
``(C) Termination.--The term `employee training
expenses' does not include any wages paid or incurred
after December 31, 2030.''.
(C) Effective date.--The amendments made by this
paragraph shall apply to taxable years beginning after
December 31, 2021.
(d) Regulatory Modernization.--
(1) Definition.--In this paragraph, the term ``startup''
means a small business concern (as defined in section 3(a) of
the Small Business Act (15 U.S.C. 632(a))) that--
(A) has been in existence for less than 3 years;
and
(B) has annual average gross receipts of less than
$3,000,000.
(2) Requirement.--Notwithstanding any other provision of
law, in the case of a startup that is operating within an
innovation center, any requirement related to a Federal grant
that prohibits the use of university laboratory or other
research assets purchased or supposed by the grant from being
used for commercial purposes for an initial time period shall
be waived.
(e) Business Access to Capital.--
(1) Innovation center debentures.--
(A) In general.--Section 303 of the Small Business
Investment Act of 1958 (15 U.S.C. 683) is amended by
adding at the end the following:
``(l) Innovation Center Debentures.--In addition to any other
authority under this Act, on and after the first day of the first
fiscal year beginning after the date of enactment of this subsection, a
small business investment company may issue innovation center
debentures.''.
(B) Definitions.--Section 103 of the Small Business
Investment Act of 1958 (15 U.S.C. 662) is amended--
(i) in paragraph (19), by striking ``and''
at the end;
(ii) in paragraph (20), by striking the
period at the end and inserting a semicolon;
and
(iii) by adding at the end the following:
``(21) the term `innovation center debenture' means a
deferred interest debenture that--
``(A) is issued at a discount;
``(B) has a 5-year maturity or a 10-year maturity;
``(C) requires no interest payment or annual charge
for the first 5 years;
``(D) is restricted to companies located within an
innovation center, as defined in section 2 of the
Innovation Centers Acceleration Act; and
``(E) is issued at no cost (as defined in section
502 of the Credit Reform Act of 1990 (2 U.S.C. 661a))
with respect to purchasing and guaranteeing the
debenture; and
``(22) the term `innovation center startup' means any
company that--
``(A) is primarily located within an innovation
center (as defined in section 2 of the Innovation
Centers Acceleration Act);
``(B) is innovation- or technology-oriented; and
``(C) has been in existence for less than 5
years.''.
(C) Exemption from capital requirements.--Section
301(c) of the Small Business Investment Act of 1958 (15
U.S.C. 681(c)) is amended by adding at the end the
following:
``(5) Exception for applications located in innovation
centers.--An applicant that is located in an innovation center
(as defined in section 2 of the Innovation Centers Acceleration
Act) and that does not satisfy the requirements of section
302(a) shall be limited to 1 tier of leverage available under
section 302(b) until the applicant meets the requirements of
section 302(a).''.
(2) 7(a) loan financing for innovation center startups.--
(A) Loan guarantee percentage.--Section 7(a)(2) of
the Small Business Act (15 U.S.C. 636(a)(2)) is
amended--
(i) in subparagraph (A), in the matter
preceding clause (i), by striking ``and (F)''
and inserting ``(F), and (G)''; and
(ii) by adding at the end the following:
``(G) Participation for innovation center
startups.--
``(i) Definition.--In this subparagraph,
the term `innovation center startup' means any
small business concern that--
``(I) is primarily located within
an innovation center (as defined in
section 2 of the Innovation Centers
Acceleration Act);
``(II) is innovation- or
technology-oriented; and
``(III) has been in existence for
less than 5 years.
``(ii) Participation.--In an agreement to
participate in a loan on a deferred basis under
this subsection for an innovation center
startup, the participation by the
Administration shall be 90 percent.''.
(B) Guarantee fee reduction.--Section 7(a)(18) of
the Small Business Act (15 U.S.C. 636(a)(18)) is
amended--
(i) in subparagraph (A), by striking ``With
respect'' and inserting ``Except as provided in
subparagraph (C), with respect''; and
(ii) by adding at the end the following:
``(C) Innovation center startups.--With respect to
a loan guaranteed under this subsection for a small
business concern described in paragraph (2)(G)(i)--
``(i) the Administration may not collect a
guarantee fee under this paragraph for a loan
of not more than $350,000; and
``(ii) for a loan of more than $350,000,
the Administration shall collect a guarantee
fee under this paragraph equal to 50 percent of
the guarantee fee that the Administration would
otherwise collect for the loan.''.
(3) Certified development company loans for innovation
center startups.--
(A) Maximum loan amount.--Section 502(2)(A) of the
Small Business Investment Act of 1958 (15 U.S.C.
696(2)(A)) is amended--
(i) in clause (iv), by striking ``and'' at
the end;
(ii) in clause (v), by striking the period
at the end and inserting ``; and''; and
(iii) by adding at the end the following:
``(vi) $10,000,000 for each project of an
innovation center startup.''.
(B) Contribution requirement.--Section 502(3)(C) of
the Small Business Investment Act of 1958 (15 U.S.C.
696(3)(C)) is amended--
(i) in clause (iii), by striking ``or'' at
the end;
(ii) by redesignating clause (iv) as clause
(v); and
(iii) by inserting after clause (iii) the
following:
``(iv) for an innovation startup--
``(I) at least 5 percent of the
total cost of the project financed, if
the innovation startup has been in
operation for a period of 2 years or
less; and
``(II) at least 5 percent of the
total cost of the project financed if
the project involves the construction
of a limited or single purpose building
or structure.''.
(4) SBA resources.--
(A) In general.--The Small Business Administration
shall provide innovation center startups (as defined in
section 7(a)(2)(G) of the Small Business Act (15 U.S.C.
636(a)(2)(G))) access to financing resources of the
Administration and assist those startups in navigating
the application process.
(B) Authorization of appropriations.--There is
authorized to be appropriated to the Small Business
Administration $2,500,000 for fiscal year 2022 and
every fiscal year thereafter to carry out subparagraph
(A).
(f) Neighborhood, Property, and Infrastructure Modernization.--
(1) Community development block grant funding.--
(A) Definitions.--In this paragraph--
(i) the term ``eligible entity'' means a
unit of general local government or Indian
tribe that receives assistance under title I of
the Housing and Community Development Act of
1974 (42 U.S.C. 5301 et seq.);
(ii) the terms ``Indian tribe'' and ``unit
of general local government'' have the meanings
given those terms in section 102 of the Housing
and Community Development Act of 1974 (42
U.S.C. 5302);
(iii) the term ``qualified affordable
housing'' means a housing development that
consists of 5 or more dwelling units of which
20 percent or more are made available--
(I) for rental only by a low-income
family (as defined in section 3(b) of
the United States Housing Act of 1937
(42 U.S.C. 1437a(b)));
(II) at a monthly rent amount that
does not exceed 30 percent of the
monthly adjusted income (as defined in
such section 3(b)) of the tenant low-
income family; and
(III) maintains affordability for
residents who are low-income families
for a period of not less than 30 years;
and
(iv) the term ``Secretary'' means the
Secretary of Housing and Urban Development.
(B) Funding.--
(i) In general.--The Secretary shall
provide a grant to each eligible entity that--
(I) is within the area covered by
an innovation center; and
(II) the Committee certifies is
working in partnership with that
innovation center.
(ii) Amount.--The amount of a grant
provided to an eligible entity under clause (i)
for a fiscal year shall be equal to the
allocation that the eligible entity receives
under title I of the Housing and Community
Development Act of 1974 (42 U.S.C. 5301 et
seq.) for that fiscal year.
(iii) Prohibition.--The Secretary may not
reduce the amount that any eligible entity
receives under title I of the Housing and
Community Development Act of 1974 (42 U.S.C.
5301 et seq.) because eligible entities receive
grants under this subparagraph.
(C) Use of funds.--An eligible entity shall use
grant funds provided under subparagraph (B) for the
development and preservation of qualified affordable
housing, including the construction of such housing,
within the area covered by an innovation center, in
accordance with title I of the Housing and Community
Development Act of 1974 (42 U.S.C. 5301 et seq.) and
after consultation with the innovation center.
(D) Authorization of appropriations.--There are
authorized to be appropriated such sums as may be
necessary to carry out this paragraph for each fiscal
year in which an innovation center designation is in
effect.
(2) Infrastructure financing.--
(A) BUILD grants.--
(i) Definition of build program.--In this
subparagraph, the term ``BUILD program'' means
the program for national infrastructure
investments (commonly known as the ``Better
Utilizing Investments to Leverage Development
(BUILD) discretionary grant program'') of the
Department of Transportation.
(ii) Authorization of appropriations.--
There is authorized to be appropriated to the
Secretary of Transportation $300,000,000 for
each of fiscal years 2023 through 2033 to carry
out projects under the BUILD program in
innovation centers.
(iii) Supplement, not supplant.--Amounts
authorized to be appropriated under clause (ii)
shall supplement and not supplant any other
amounts authorized to be appropriated for the
BUILD program.
(B) INFRA grants.--
(i) Authorization of appropriations.--There
is authorized to be appropriated to the
Secretary of Transportation $300,000,000 for
each of fiscal years 2023 through 2033 to carry
out projects under the nationally significant
freight and highway projects program under
section 117 of title 23, United States Code, in
innovation centers.
(ii) Supplement, not supplant.--Amounts
authorized to be appropriated under clause (i)
shall supplement and not supplant any other
amounts authorized to be appropriated for the
nationally significant freight and highway
projects program under section 117 of title 23,
United States Code.
(C) TIFIA program.--
(i) Lines of credit.--Section 604(b)(2) of
title 23, United States Code, is amended--
(I) by striking ``The total'' and
inserting the following:
``(A) In general.--Except as provided in
subparagraph (B), the total''; and
(II) by adding at the end the
following:
``(B) Projects in innovation centers.--In the case
of a project in an innovation center (as defined in
section 2 of the Innovation Centers Acceleration Act),
the total amount of a line of credit under this section
shall not exceed 49 percent of the reasonably
anticipated eligible project costs.''.
(ii) Fee waiver.--Section 605 of title 23,
United States Code, is amended by adding at the
end the following:
``(g) Projects in Innovation Centers.--Notwithstanding any other
provision of this chapter, in the case of a project in an innovation
center (as defined in section 2 of the Innovation Centers Acceleration
Act), the Secretary shall not require the payment of any fees under
section 603(b)(7), section 604(b)(9), or subsection (b).''.
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