Sec. 102. Tax credit for investment in nanotechnology firms
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Part IV of subchapter A of chapter 1 of the Internal Revenue Code of 1986 (relating to credits against tax) is amended by adding at the end the following new subpart: Sec. 54BB. Credit for purchase of nanotechnology developer stock. There shall be allowed as a credit against the tax imposed by this chapter for the taxable year an amount equal to the applicable percentage of the aggregate amount paid by the taxpayer for the purchase of qualified nanotechnology developer stock.
For purposes of subsection (a), the applicable percentage is— 5.25 percent for the taxable year in which the qualified nanotechnology developer stock is purchased, 3.75 percent for the taxable year following the year in which such stock is purchased, 3 percent for the second taxable year following the year in which such stock is purchased, 1.5 percent for the third taxable year following the year in which such stock is purchased, 1.5 percent for fourth taxable year following the year in which such stock is purchased, and 0 percent for any taxable year after the fourth taxable year following the year in which such stock is purchased.
No credit shall be allowed under subsection
(a)with respect to amounts paid in any taxable year for the purchase of qualified nanotechnology developer stock which is in excess of $10,000,000. The credit allowed under subsection
(a)for any taxable year shall not exceed the excess of— the regular tax for the taxable year reduced by the sum of the credits allowable under this part (other than subpart C thereof), over the tentative minimum tax for the taxable year. For purposes of this section— The term qualified nanotechnology developer stock means any common stock in a C corporation or any membership unit in a State-registered limited liability company if— as of the date of issuance of such stock or membership unit, such corporation or company is a qualified nanotechnology developer, such stock is acquired by the taxpayer at its original issue (directly or through an underwriter) in exchange for money or other property (not including stock), and the proceeds of such issue are used by such issuer during the 5-year period beginning on the date of issuance for the development, production, or sale of products using nanotechnology. The term qualified nanotechnology developer means any entity— which is a C corporation or limited liability company organized under the laws of any State or of the United States, which is a small business concern (as defined in section 3(a) of the Small Business Act), and with respect to which a certification under subsection
(d)is in effect. The term nanotechnology means the science of understanding and manipulating matter on an atomic or molecular scale, generally to create structures, and usually at a size smaller than 100 nanometers. The Secretary, in consultation with the National Nanotechnology Coordination Office, shall certify an entity under this subsection if such entity demonstrates by the submission of such information as required by the Secretary that not less than 51 percent of its activities relate to the development, production, and sale of products using nanotechnology. The Secretary shall revoke the certification of any entity which is certified under paragraph
(1)if the Secretary determines that— the proceeds from any qualified nanotechnology developer stock issued by such entity are used during the 5-year period following such issue for a purpose other than the development, production, or sale of products using nanotechnology, or such entity no longer meets the requirements of paragraph (1). The Secretary may require any entity certified under paragraph
(1)to provide such information as the Secretary may require in order ensure compliance with the purposes of this section. If the credit amount allowable under subsection
(a)for a taxable year exceeds the amount of the limitation under subsection
(h)for such taxable year, such excess shall be allowed as a credit carryforward for each of the 20 taxable years following the unused credit year. Rules similar to the rules of section 39 shall apply with respect to the credit carryforward under paragraph (1). If— the taxpayer fails to hold qualified nanotechnology developer stock for the 7-year period beginning on the date such stock was purchased by the taxpayer, or during such 7-year period, the issuer of such stock ceases to be a qualified nanotechnology developer, then notwithstanding any other provision of this subtitle, the tax imposed by this chapter on the taxpayer for the taxable year beginning in the calendar year in which such cessation occurred shall be increased by the aggregate amount of credit allowed under subsection
(a)to the taxpayer with respect to such stock. For purposes of this section, rules similar to the rules of section 1202(c)(3) shall apply. For purposes of this subtitle, if a credit is allowed under this section for the purchase of any stock— the increase in the basis of such stock which would (but for this subsection) result from such purchase shall be reduced by the amount of the credit so allowed, and the basis of such stock shall be increased by the amount of any increase in tax by reason of subsection (f). . Subsection
(a)of section 1016 of such Code is amended by striking and at the end of paragraph (36), by striking the period at the end of paragraph
(37)and inserting ; and , and by adding at the end the following new paragraph: to the extent provided in section 54BB(h), in the case of amounts with respect to which a credit has been allowed under section 54BB or a recapture imposed under section 54BB(f). . The table of subparts for part IV is amended by adding at the end the following new item: SUBPART K. NANOTECHNOLOGY DEVELOPMENT CREDIT . The amendments made by this section shall apply to amounts paid after December 31, 2015.