This bill creates a new tax credit to encourage private investment in research on neurodegenerative diseases and psychiatric conditions. Companies and organizations that spend money on translational research in these areas—the phase of research that develops new treatments and devices—would receive a tax credit equal to 25 percent of their eligible expenses. The credit is limited by a national funding cap that starts at $1 billion in 2026, increases to $2 billion annually from 2027 through 2030, then drops back to $1 billion in 2031, with any unused credits rolling over to subsequent years. The bill allows tax-exempt entities like nonprofits and government agencies to transfer their credits to for-profit partners, encouraging collaboration and public-private partnerships. The credit expires after December 31, 2035, and the Secretary of the Treasury, working with health agencies, will establish rules for allocating credits based on scientific merit and emphasis on developing new treatments for brain and nervous system disorders.
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