To amend the Internal Revenue Code of 1986 to provide a credit to small businesses for research activities related to the mitigation of certain drug threats.
Impact
If enacted, this bill would apply to taxable years beginning after its enactment, allowing eligible small businesses to receive a tax credit equivalent to 10 percent of their qualified drug threat mitigation research expenses. The initiative seeks to stimulate innovation and research within the private sector, enabling small enterprises to play a vital role in combating drug misuse and its associated consequences. The legislation defines 'qualified drug threat mitigation research' to include various research activities focused on discovering new methods for preventing and addressing the effects of these drugs.
Summary
House Bill 6979 aims to amend the Internal Revenue Code of 1986 by introducing a tax credit for small businesses engaged in research activities aimed at mitigating specific drug-related threats. This bill is particularly focused on addressing the challenges posed by emerging drugs such as fentanyl and methamphetamine, which have increasingly become significant public health issues. The proposed legislation is designed to encourage small businesses to conduct research that will help identify solutions for these drug threats, thereby promoting social welfare and public safety.
Contention
Notably, the bill includes specific definitions regarding 'specified drugs' that encompass fentanyl, methamphetamine, and emerging drug threats as designated under relevant federal law. While proponents see this financial incentive as crucial for addressing the opioid crisis and supporting small businesses, potential critics may argue about the effectiveness of tax credits in promoting meaningful research outcomes or the allocation of public funds for such initiatives. The requirement that research complies with the National Institutes of Health's guidelines also emphasizes the focus on high-quality, ethical research methods.
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.