Page:United States Statutes at Large Volume 124.djvu/903

 124 STAT. 877 PUBLIC LAW 111–148—MAR. 23, 2010 SEC. 9023. QUALIFYING THERAPEUTIC DISCOVERY PROJECT CREDIT. (a) IN GENERAL.—Subpart E of part IV of subchapter A of chapter 1 of the Internal Revenue Code of 1986 is amended by inserting after section 48C the following new section: ‘‘SEC. 48D. QUALIFYING THERAPEUTIC DISCOVERY PROJECT CREDIT. ‘‘(a) IN GENERAL.—For purposes of section 46, the qualifying therapeutic discovery project credit for any taxable year is an amount equal to 50 percent of the qualified investment for such taxable year with respect to any qualifying therapeutic discovery project of an eligible taxpayer. ‘‘(b) QUALIFIED INVESTMENT.— ‘‘(1) IN GENERAL.—For purposes of subsection (a), the quali- fied investment for any taxable year is the aggregate amount of the costs paid or incurred in such taxable year for expenses necessary for and directly related to the conduct of a qualifying therapeutic discovery project. ‘‘(2) LIMITATION.—The amount which is treated as qualified investment for all taxable years with respect to any qualifying therapeutic discovery project shall not exceed the amount cer- tified by the Secretary as eligible for the credit under this section. ‘‘(3) EXCLUSIONS.—The qualified investment for any taxable year with respect to any qualifying therapeutic discovery project shall not take into account any cost— ‘‘(A) for remuneration for an employee described in section 162(m)(3), ‘‘(B) for interest expenses, ‘‘(C) for facility maintenance expenses, ‘‘(D) which is identified as a service cost under section 1.263A–1(e)(4) of title 26, Code of Federal Regulations, or ‘‘(E) for any other expense as determined by the Sec- retary as appropriate to carry out the purposes of this section. ‘‘(4) CERTAIN PROGRESS EXPENDITURE RULES MADE APPLICABLE.—In the case of costs described in paragraph (1) that are paid for property of a character subject to an allowance for depreciation, rules similar to the rules of subsections (c)(4) and (d) of section 46 (as in effect on the day before the date of the enactment of the Revenue Reconciliation Act of 1990) shall apply for purposes of this section. ‘‘(5) APPLICATION OF SUBSECTION.—An investment shall be considered a qualified investment under this subsection only if such investment is made in a taxable year beginning in 2009 or 2010. ‘‘(c) DEFINITIONS.— ‘‘(1) QUALIFYING THERAPEUTIC DISCOVERY PROJECT.—The term ‘qualifying therapeutic discovery project’ means a project which is designed— ‘‘(A) to treat or prevent diseases or conditions by con- ducting pre-clinical activities, clinical trials, and clinical studies, or carrying out research protocols, for the purpose of securing approval of a product under section 505(b) of the Federal Food, Drug, and Cosmetic Act or section 351(a) of the Public Health Service Act, 26 USC 48D.