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Adds new section 45BB to Subpart D of part IV of subchapter A of chapter 1 (Internal Revenue Code), establishing a translational research tax credit equal to 25% of qualifying translational research expenses for neurodegenerative diseases and psychiatric conditions, with taxpayer and aggregate national limitations, allocation and application rules, transfer rules for tax‑exempt entities, coordination with section 41, and a termination provision.
Adds new subsection (i) to section 280C disallowing a deduction for that portion of expenses taken into account under section 45BB equal to the amount of the credit determined under section 45BB.
Amends section 38(b) by adding paragraph (42) to include the credit determined under section 45BB as a component of the general business credit.
Amends the table of sections for Subpart D of part IV of subchapter A of chapter 1 by adding a new item for section 45BB.
Creates a new 25% tax credit to support translational research aimed at neurodegenerative diseases and psychiatric conditions. The credit applies to qualified research expenses and is subject to a national annual cap that Treasury will allocate among eligible applicants.
Tax‑exempt organizations (like universities and nonprofits) can transfer their allocated credit to taxable project partners to monetize it. Expenses used for this credit cannot also receive a deduction or overlapping research credits. The program runs through tax years beginning before January 1, 2036, and Treasury must issue rules—developed with HHS, FDA, and NIH—defining eligibility, application, and allocation processes.
Referred to the House Committee on Ways and Means.
Introduced March 11, 2025 by Michael Thompson · Last progress March 11, 2025