I
119THCONGRESS
1
STSESSION 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
MARCH11, 2025
Mr. T
HOMPSONof California (for himself and Mr. KELLYof 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 psy-
chiatric conditions.
Be it enacted by the Senate and House of Representa-1
tives of the United States of America in Congress assembled, 2
SECTION 1. SHORT TITLE. 3
This Act may be cited as the ‘‘Mental Health Re-4
search Accelerator Act of 2025’’. 5
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SEC. 2. EXPENSES FOR CERTAIN TRANSLATIONAL RE-1
SEARCH. 2
(a) I
NGENERAL.—Subpart D of part IV of sub-3
chapter A of chapter 1 of the Internal Revenue Code of 4
1986 is amended by adding at the end the following new 5
section: 6
‘‘SEC. 45BB. EXPENSES FOR CERTAIN TRANSLATIONAL RE-7
SEARCH. 8
‘‘(a) A
LLOWANCE OFCREDIT.—For purposes of sec-9
tion 38, the translational research credit determined under 10
this section for any taxable year shall be an amount equal 11
to 25 percent of the amounts paid or incurred by the tax-12
payer during such taxable year which are necessary for 13
translational research regarding neurodegenerative dis-14
eases and psychiatric conditions. 15
‘‘(b) L
IMITATION.— 16
‘‘(1) T
AXPAYER LIMITATION .—The credit al-17
lowed under this section to a taxpayer for a taxable 18
year beginning in any calendar year shall not exceed 19
the portion of the limitation amount allocated to the 20
taxpayer under this subsection reduced by the 21
amount of credit allowed to the taxpayer under this 22
section for all prior taxable years. 23
‘‘(2) A
GGREGATE NATIONAL LIMITATION .— 24
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‘‘(A) IN GENERAL .—There is a 1
translational research credit limitation for each 2
calendar year as follows: 3
‘‘(i) $1,000,000,000 for 2026. 4
‘‘(ii) $2,000,000,000 for each of years 5
2027 through 2030. 6
‘‘(iii) $1,000,000,000 for 2031. 7
‘‘(B) A
LLOCATION OF LIMITATION .—As 8
expeditiously as possible, the Secretary shall al-9
locate among applicants selected by the Sec-10
retary the limitation under subparagraph (A) 11
for all years. 12
‘‘(C) C
ARRYOVER OF UNUSED LIMITA -13
TION.—If the translational research credit limi-14
tation for any calendar year exceeds the aggre-15
gate amount allocated under subparagraph (A) 16
for such year, such limitation for the succeeding 17
calendar year shall be increased by the amount 18
of such excess. 19
‘‘(D) R
EGULATIONS.—The Secretary shall 20
(in consultation with the Secretary of Health 21
and Humans Services, the Administrator of the 22
Food and Drug Administration, and the Direc-23
tor of the National Institutes of Health) pre-24
scribe regulations as may be necessary to carry 25
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out the purposes of this section, including es-1
tablishing the application process and the cri-2
teria for allocation under subparagraph (B). 3
Such regulations shall include the following: 4
‘‘(i) Amounts shall be allocated based 5
on scientific merit. 6
‘‘(ii) Projects should include all 7
phases of the research continuum. 8
‘‘(iii) An emphasis on new thera-9
peutics and devices targeted at central 10
nervous system disorders and in the neuro-11
logical and psychiatric fields. 12
‘‘(iv) Standards for repurposing exist-13
ing drugs and devices for new purposes. 14
‘‘(v) Standards for public-private part-15
nerships with priority given to collaborative 16
efforts and sharing of intellectual property 17
held by tax exempt entities involved in the 18
project. 19
‘‘(c) T
RANSFER OFCREDIT.— 20
‘‘(1) I
N GENERAL.—If, with respect to a credit 21
under subsection (a) for any taxable year— 22
‘‘(A) a tax-exempt entity would be the tax-23
payer (but for this paragraph), and 24
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‘‘(B) such entity elects the application of 1
this paragraph for such taxable year with re-2
spect to all (or any portion specified in such 3
election) of such credit, 4
the eligible project partner specified in such election, 5
and not the tax-exempt entity, shall be treated as 6
the taxpayer for purposes of this title with respect 7
to such credit (or such portion thereof). 8
‘‘(2) D
EFINITIONS.—For purposes of this sub-9
section— 10
‘‘(A) T
AX-EXEMPT ENTITY .—The term 11
‘tax-exempt entity’ means— 12
‘‘(i) a Federal, State, Indian tribal 13
government (as defined in section 14
7701(a)(4)), or local government entity, or 15
any political subdivision, agency, or instru-16
mentality thereof, and 17
‘‘(ii) an organization described in sec-18
tion 501(c)(3) and exempt from tax under 19
section 501(a). 20
‘‘(B) E
LIGIBLE PROJECT PARTNER .—The 21
term ‘eligible project partner’ means any person 22
who— 23
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‘‘(i) is identified in the application for 1
allocation of credit under this section as a 2
project partner, and 3
‘‘(ii) participates in, or provides fund-4
ing for, the research with respect to which 5
limitation was allocated by the Secretary 6
under subsection (b). 7
‘‘(3) S
PECIAL RULES.— 8
‘‘(A) I
N GENERAL.—In the case of a credit 9
under subsection (a) which is determined at the 10
partnership level— 11
‘‘(i) for purposes of paragraph (1)(A), 12
a tax-exempt entity shall be treated as the 13
taxpayer with respect to such entity’s dis-14
tributive share of such credit, and 15
‘‘(ii) the term ‘eligible project partner’ 16
shall include any partner of the partner-17
ship. 18
‘‘(B) T
AXABLE YEAR IN WHICH CREDIT 19
TAKEN INTO ACCOUNT .—In the case of any 20
credit (or portion thereof) with respect to which 21
an election is made under paragraph (1), such 22
credit shall be taken into account in the first 23
taxable year of the eligible project partner end-24
ing with, or after, the tax-exempt entity’s tax-25
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able year with respect to which the credit was 1
determined. 2
‘‘(d) C
OORDINATIONWITHCREDIT FORINCREASING 3
R
ESEARCHEXPENDITURES.— 4
‘‘(1) I
N GENERAL.—Except as provided in para-5
graph (2), any expenses taken into account under 6
this section shall not be taken into account for pur-7
poses of determining the credit allowable under sec-8
tion 41 for such taxable year. 9
‘‘(2) E
XPENSES INCLUDED IN DETERMINING 10
BASE PERIOD RESEARCH EXPENSES .—Any expenses 11
taken into account under this section which are 12
qualified research expenses (within the meaning of 13
section 41(b)) shall be taken into account in deter-14
mining base period research expenses for purposes of 15
applying section 41 to subsequent taxable years. 16
‘‘(e) T
ERMINATION.—No credit shall be allowed 17
under this section for any taxable year beginning after De-18
cember 31, 2035.’’. 19
(b) D
EDUCTIONDISALLOWED.—Section 280C of 20
such Code is amended by adding at the end the following 21
new subsection: 22
‘‘(i) C
REDIT FORCERTAINTRANSLATIONAL RE-23
SEARCH.—No deduction shall be allowed for that portion 24
of the expenses taken into account under section 45BB 25
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otherwise allowable as a deduction for the taxable year 1
which is equal to the amount of the credit determined for 2
such taxable year under such section.’’. 3
(c) C
REDITMADEPART OFGENERALBUSINESS 4
C
REDIT.—Section 38(b) of the Internal Revenue Code of 5
1986 is amended by striking ‘‘plus’’ at the end of para-6
graph (40), by striking the period at the end of paragraph 7
(41) and inserting ‘‘, plus’’, and by adding at the end the 8
following new paragraph: 9
‘‘(42) the credit determined under section 10
45BB.’’. 11
(d) C
LERICALAMENDMENT.—The table of sections 12
for subpart D of part IV of subchapter A of chapter 1 13
of such Code is amended by adding at the end the fol-14
lowing new item: 15
‘‘Sec. 45BB. Expenses for certain translational research.’’.
(e) EFFECTIVEDATE.—The amendments made by 16
this subsection shall take effect on the date of the enact-17
ment of this Act. 18
Æ
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