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