Sec. 4. Federal innovation supports

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An innovation center shall be eligible for the Federal innovation supports described in this section. The Director of the National Science Foundation shall pursue a goal of awarding through a rigorous selection process, for each innovation center that gets its designation renewed continually for 3 terms, a total of $1,250,000,000 in grant funds to entities located in that innovation center by the end of the 9th year of the designation of that innovation center, by proportionally increasing the total amount of the grants awarded over the 9-year period.

In addition to awarding grants in pursuit of the goal described in subparagraph (A), the Director shall award grants— with a focus on universities or other research institutions that commit to expanding research and workforce capabilities aligned with industries and technologies and with a preference for universities or institutions that are— concentrated in an innovation center; or key to national challenges; or that include industry-university research partnership programs.

In each year, the Director of the National Science Foundation shall track the aggregate amount of grants awarded by the Director to entities in that year, disaggregated by innovation center. There are authorized to be appropriated to carry out this paragraph, in addition to amounts that would otherwise be appropriated in a year for the National Science Foundation, amounts as follows: For fiscal year 2021, $0. For fiscal year 2022, $1,110,000,000. For fiscal year 2023, $2,220,000,000.

For fiscal year 2024, $3,330,000,000. For fiscal year 2025, $4,440,000,000. For fiscal year 2026, $5,550,000,000. For fiscal year 2027, $6,660,000,000. For fiscal year 2028, $7,770,000,000. For fiscal year 2029, $8,880,000,000. For fiscal year 2030, $9,990,000,000. The Director of the National Science Foundation shall expand graduate research fellowships and programs focused on undergraduate research opportunities, including— research experiences for undergraduates; advanced technological education programs; historically Black colleges and universities undergraduate programs; and Hispanic-serving institutions.

The amounts expended by the Director to carry out subparagraph (A), 35 percent of such amounts shall be expended for the expansion of graduate research fellowships and undergraduate research opportunities in innovation centers. There are authorized to be appropriated to carry out this paragraph amounts as follows: In fiscal year 2022, $57,000,000. In fiscal year 2023, $114,000,000. In fiscal year 2024, $171,000,000. In fiscal year 2025, $228,000,000. In fiscal year 2026, $285,000,000.

In fiscal year 2027, $342,000,000. In fiscal year 2028, $399,000,000. In fiscal year 2029, $456,000,000. In fiscal year 2030, $513,000,000. The Director of the National Science Foundation shall consider the location of a university within an innovation center to be a strength for purposes of selection criteria under the Industry-University Cooperative Research Centers program. Section 9(j) of the Small Business Act ( 15 U.S.C. 638(j) ) is amended by adding at the end the following:

In this paragraph, the term innovation center has the meaning given the term in section 2 of the Innovation Centers Acceleration Act . Not later than 6 months after the date of enactment of the Innovation Centers Acceleration Act , the Administrator shall modify the policy directives issued pursuant to this subsection— to provide that, during the 10-year period beginning on the date of enactment of the Innovation Centers Acceleration Act , the location of a small business concern within an innovation center shall be considered a strength under the selection criteria for Phase I and Phase II proposals under the SBIR program of a Federal agency; and to require the Administrator to track and publish on an annual basis the total value of SBIR awards made to small business concerns located in innovation centers. .

In this paragraph: The term Manufacturing USA Program means the program established under section 34(b) of the National Institute of Standards and Technology Act ( 15 U.S.C. 278s(b) ). The term Manufacturing USA institute means an institute described in section 34(d) of the National Institute of Standards and Technology Act ( 15 U.S.C. 278s(d) ). Under section 34(e) of the National Institute of Standards and Technology Act ( 15 U.S.C. 278s(e) ), the Secretary shall award financial assistance to assist in the establishment and support of— 9 new Manufacturing USA institutes; or a combination of satellites to existing Manufacturing USA institutes or new Manufacturing USA institutes.

Manufacturing USA institutes and satellites shall be identified and funded under subparagraph

(B)from among proposals submitted to the Secretary for purposes of this paragraph. Any proposal submitted to the Secretary in accordance with clause

(i)shall include— a plan for the institute or satellite concerned to support or otherwise align with existing Manufacturing USA institutes, including through— membership in, or partnership or formal affiliation with, an existing Manufacturing USA institute; or a plan to reach a segment, population, or geographic area not already covered by or engaged with existing Manufacturing USA institutes; and a plan for cost-sharing for the activities of the institute or satellite concerned, including the sources of funds and amounts to be contributed. Any selection of a satellite to an existing Manufacturing USA institute under this subparagraph shall be made by the Secretary in consultation with exiting Manufacturing USA institutes. In identifying and funding a new Manufacturing USA institute or a combination of satellites to existing or new Manufacturing USA institutes under subparagraph (B), the Secretary shall give priority to proposals for identification and funding of Manufacturing USA institutes in an innovation center, in whole or in substantial part. In identifying and funding Manufacturing USA institutes or satellites to Manufacturing USA institutes under subparagraph (B), the Secretary shall, to the extent practicable, avoid overlap or redundancy in mission, technology focus, or funding with existing Manufacturing USA institutes. For each Manufacturing USA institute identified and funded under subparagraph (B), the Secretary may expend up to $70,000,000 during the period of fiscal years 2021 through 2032. For each Manufacturing USA institute satellite or expansion supported under subparagraph (B), the Secretary may expend up to $25,000,000 during the period of fiscal years 2021 through 2032. Not less than 33 percent of the financial assistance provided under subparagraph

(B)shall be for identifying and funding Manufacturing USA institutes in innovation centers. The Secretary of Commerce and the Secretary of Defense shall consider the location of a university within an innovation center to be a strength for purposes of selection criteria under the Manufacturing Universities Program. The National Director of the Minority Business Development Agency may, acting through the Inner City Innovation Hub program, award not more than 2 grants to eligible entities located within each innovation center. A grant awarded under subparagraph

(A)may not exceed $1,500,000. There are authorized to be appropriated to the National Director of the Minority Business Development Agency $27,000,000 for each of fiscal years 2022 through 2030. Section 4 of the Stevenson-Wydler Technology Innovation Act of 1980 ( 15 U.S.C. 3703 ) is amended by adding at the end the following: Innovation center has the meaning given the term in section 2 of the . Innovation Centers Acceleration Act . Section 27 of the Stevenson-Wydler Technology Innovation Act of 1980 ( 15 U.S.C. 3722 ) is amended— in subsection (c)— in paragraph (1), by striking As part of the program and inserting the following: As part of the program ; and by adding at the end the following: As a part of the program established pursuant to subsection (b), the Assistant Secretary of Commerce for Economic Development may award grants, on a competitive basis, to eligible recipients described in subsection (a)(1)(D) located within innovation centers. ; and in subsection (h)— by striking From amounts appropriated and inserting the following: From amounts appropriated ; and by adding at the end the following: There are authorized to be appropriated to the Secretary to award grants under subsection (c)(1)(B) $5,000,000 for each of fiscal years 2022 through 2030. . Section 129 of the Workforce Innovation and Opportunity Act ( 29 U.S.C. 3164 ) is amended by adding at the end the following: Using funds made available under section 136(d), the Secretary shall provide a grant to each local area that— is within the area covered by an innovation center selected under subsection

(e)of section 3 of the Innovation Centers Acceleration Act; and the Innovation Center Selection Committee established under that section 3 certifies is working in partnership with that innovation center. The amount of the grant for a fiscal year shall be equal to the allocation that the local area receives under section 128(b) for that fiscal year. The Secretary may not reduce the amount that any local area receives through an allocation under section 128(b) because local areas described in subparagraph

(A)receive grants under this subsection. The local area shall use the grant funds in accordance with subsection (c), after consultation with the innovation center. . Section 134 of the Workforce Innovation and Opportunity Act ( 29 U.S.C. 3174 ) is amended by adding at the end the following: Using funds made available under section 136(d), the Secretary shall provide a grant to each local area that— is within the area covered by an innovation center selected under subsection

(1)and

(2)of section 133(b) for that fiscal year. The Secretary may not reduce the amount that any local area receives through an allocation under paragraph

(1)or

(2)of section 133(b)(3) because local areas described in subparagraph

(A)receive grants under this subsection. The local area shall use the grant funds in accordance with subsections (b), (c), and (d), after consultation with the innovation center. . Section 136 of the Workforce Innovation and Opportunity Act ( 29 U.S.C. 3181 ) is amended— in subsections (a), (b), and (c), by inserting before the first comma the following: (except for activities funded from amounts appropriated under subsection (d)) ; and by adding at the end the following: There are authorized to be appropriated to carry out sections 129(d) and 134(e) such sums as may be necessary for each fiscal year that an innovation center designation is in effect. . Section 28 of the Stevenson-Wydler Technology Innovation Act of 1980 ( 15 U.S.C. 3723 ) is amended by adding at the end the following: In this subsection, the term eligible entity means an eligible recipient that is— described in subsection (b)(4); and located within an innovation center. The Assistant Secretary of Commerce for Economic Development shall provide to not less than 1 eligible entity located in each innovation center a grant to develop infrastructure to expand STEM apprenticeship programs. The amount of a grant under paragraph

(2)shall be not more than $5,000,000 for each year over a 3-year period. The Secretary may provide an eligible entity that receives a grant under paragraph

(2)not more than 2 additional grants under that paragraph. The Assistant Secretary of Commerce for Economic Development shall give preference for a grant under this subsection to an eligible entity with demonstrated success of administering apprenticeship and other workforce development models and that demonstrates a commitment to serving individuals— from underrepresented populations; or who face barriers to employment, including— long-term unemployment; past incarceration; or veteran or disability status. There are authorized to be appropriated to carry out this section $50,000,000 for each of fiscal years 2022 through 2030. . The Director of the National Institutes of Health shall pursue a goal of awarding through a rigorous selection process and subject to peer review, for each innovation center that gets its designation renewed continually for 3 terms, a total of $1,250,000,000 in meritorious research awards in priority areas of biomedical science to entities located in that innovation center by the end of the 9th year of the designation of that innovation center, by proportionally increasing the total amount of the grants, contracts, or other transactions awarded in each innovation center each year over the 9-year period. In addition to awarding grants, contracts, or other transactions in pursuit of the goal described in subparagraph (A), the Director of the National Institutes of Health shall award grants— with a focus on universities or other research institutions that commit to expanding research capabilities aligned with industries and technologies and with a preference for universities or institutions that are— concentrated in an innovation center; or key to national challenges; or that include industry-university research partnership programs. In each year, the Director of the National Institutes of Health shall track the aggregate amount of grants, contracts, or other transactions awarded by the Director to entities in that year, disaggregated by innovation center. There are authorized to be appropriated to carry out this paragraph, in addition to amounts that would otherwise be appropriated in a year for the National Institutes of Health, amounts as follows: For fiscal year 2021, $0. For fiscal year 2022, $140,000,000. For fiscal year 2023, $280,000,000. For fiscal year 2024, $420,000,000. For fiscal year 2025, $560,000,000. For fiscal year 2026, $700,000,000. For fiscal year 2027, $840,000,000. For fiscal year 2028, $980,000,000. For fiscal year 2029, $1,120,000,000. For fiscal year 2030, $1,260,000,000. Subsection

(f)of section 45D of the Internal Revenue Code of 1986 is amended by adding at the end the following new paragraph: In the case of any calendar year beginning after 2021— the limitation under paragraph

(1)(including in calendar years for which the limitation under paragraph

(1)is zero) shall be increased by $50,000,000 for each metropolitan statistical area which is designated as an innovation center under section 3(e) of the Innovation Centers Acceleration Act for such calendar year, and the additional limitation under subparagraph

(A)shall be divided equally among such innovation centers and allocated (as provided in paragraph (2)) among qualified community development entities in such innovation centers. . Section 41 of such Code is amended by adding at the end the following new subsection: In the case of— any qualified research expenses paid or incurred for qualified services or qualified research, any basic research payments for basic research, and amounts paid or incurred by the taxpayer in carrying on any trade or business of the taxpayer (including as contributions) to an energy research consortium for energy research, during the taxable year at a location in a metropolitan statistical area which is an innovation center for such taxable year, this section shall be applied as provided in paragraphs

(2)and (3). Subsection

(a)shall be applied by substituting 30 percent for 20 percent each place it appears. Subsection (c)(4) shall be applied— by substituting 21 percent for 14 percent in subparagraph (A), and by substituting 9 percent for 6 percent in subparagraph (B)(ii). In the case of a trade or business located primarily within a metropolitan statistical area which is an innovation center for the taxable year, subsection

(h)shall be applied— by substituting $15,000,000 for $5,000,000 in paragraph (3)(A)(i)(I), by substituting 8-taxable-year for 5-taxable-year in paragraph (3)(A)(i)(II), and by substituting $500,000 for $250,000 both places it appears in paragraphs (4)(B)(i) and (5)(B)(ii). For purposes of this subsection, for any taxable year, the term innovation center means a metropolitan statistical area with a designation as an innovation center under section 3(e) of the Innovation Centers Acceleration Act in effect for calendar years beginning in such year. This subsection shall not apply to expenses paid or incurred after December 31, 2030. . Paragraph

(1)of section 41(b) of such Code is amended— by striking and at the end of subparagraph (A), by striking the period at the end of subparagraph

(B)and inserting , and , and by adding at the end the following new subparagraph: employee training expenses. . Subsection

(b)of section 41 of such Code is amended— by redesignating paragraph

(4)as paragraph (5), and by inserting after paragraph

(3)the following new paragraph: The term employee training expenses means any wages paid or incurred to an employee in connection with training for the employee to perform qualified services described in clause

(i)or

(ii)of paragraph (2)(B). Such term does not include wages paid or incurred in connection with general employer training which does not specifically pertain to such qualified services. For purposes of this paragraph— The term wages shall not include any amount taken into account under paragraph (2)(A)(i). The rules of paragraph (2)(D) shall apply. The term employee training expenses does not include any wages paid or incurred after December 31, 2030. . The amendments made by this paragraph shall apply to taxable years beginning after December 31, 2021. In this paragraph, the term startup means a small business concern (as defined in section 3(a) of the Small Business Act ( 15 U.S.C. 632(a) )) that— has been in existence for less than 3 years; and has annual average gross receipts of less than $3,000,000. Notwithstanding any other provision of law, in the case of a startup that is operating within an innovation center, any requirement related to a Federal grant that prohibits the use of university laboratory or other research assets purchased or supposed by the grant from being used for commercial purposes for an initial time period shall be waived. Section 303 of the Small Business Investment Act of 1958 ( 15 U.S.C. 683 ) is amended by adding at the end the following: In addition to any other authority under this Act, on and after the first day of the first fiscal year beginning after the date of enactment of this subsection, a small business investment company may issue innovation center debentures. . Section 103 of the Small Business Investment Act of 1958 ( 15 U.S.C. 662 ) is amended— in paragraph (19), by striking and at the end; in paragraph (20), by striking the period at the end and inserting a semicolon; and by adding at the end the following: the term innovation center debenture means a deferred interest debenture that— is issued at a discount; has a 5-year maturity or a 10-year maturity; requires no interest payment or annual charge for the first 5 years; is restricted to companies located within an innovation center, as defined in section 2 of the Innovation Centers Acceleration Act ; and is issued at no cost (as defined in section 502 of the Credit Reform Act of 1990 ( 2 U.S.C. 661a )) with respect to purchasing and guaranteeing the debenture; and the term innovation center startup means any company that— is primarily located within an innovation center (as defined in section 2 of the Innovation Centers Acceleration Act ); is innovation- or technology-oriented; and has been in existence for less than 5 years. . Section 301(c) of the Small Business Investment Act of 1958 ( 15 U.S.C. 681(c) ) is amended by adding at the end the following: An applicant that is located in an innovation center (as defined in section 2 of the Innovation Centers Acceleration Act ) and that does not satisfy the requirements of section 302(a) shall be limited to 1 tier of leverage available under section 302(b) until the applicant meets the requirements of section 302(a). .

(a)loan financing for innovation center startups Section 7(a)(2) of the Small Business Act ( 15 U.S.C. 636(a)(2) ) is amended— in subparagraph (A), in the matter preceding clause (i), by striking and

(F)and inserting (F), and

(G); and by adding at the end the following: In this subparagraph, the term innovation center startup means any small business concern that— is primarily located within an innovation center (as defined in section 2 of the Innovation Centers Acceleration Act ); is innovation- or technology-oriented; and has been in existence for less than 5 years. In an agreement to participate in a loan on a deferred basis under this subsection for an innovation center startup, the participation by the Administration shall be 90 percent. . Section 7(a)(18) of the Small Business Act ( 15 U.S.C. 636(a)(18) ) is amended— in subparagraph (A), by striking With respect and inserting Except as provided in subparagraph (C), with respect ; and by adding at the end the following: With respect to a loan guaranteed under this subsection for a small business concern described in paragraph (2)(G)(i)— the Administration may not collect a guarantee fee under this paragraph for a loan of not more than $350,000; and for a loan of more than $350,000, the Administration shall collect a guarantee fee under this paragraph equal to 50 percent of the guarantee fee that the Administration would otherwise collect for the loan. . Section 502(2)(A) of the Small Business Investment Act of 1958 ( 15 U.S.C. 696(2)(A) ) is amended— in clause (iv), by striking and at the end; in clause (v), by striking the period at the end and inserting ; and ; and by adding at the end the following: $10,000,000 for each project of an innovation center startup. . Section 502(3)(C) of the Small Business Investment Act of 1958 ( 15 U.S.C. 696(3)(C) ) is amended— in clause (iii), by striking or at the end; by redesignating clause

(iv)as clause (v); and by inserting after clause

(iii)the following: for an innovation startup— at least 5 percent of the total cost of the project financed, if the innovation startup has been in operation for a period of 2 years or less; and at least 5 percent of the total cost of the project financed if the project involves the construction of a limited or single purpose building or structure. . The Small Business Administration shall provide innovation center startups (as defined in section 7(a)(2)(G) of the Small Business Act ( 15 U.S.C. 636(a)(2)(G) )) access to financing resources of the Administration and assist those startups in navigating the application process. There is authorized to be appropriated to the Small Business Administration $2,500,000 for fiscal year 2021 and every fiscal year thereafter to carry out subparagraph (A). In this paragraph— the term eligible entity means a unit of general local government or Indian tribe that receives assistance under title I of the Housing and Community Development Act of 1974 ( 42 U.S.C. 5301 et seq.); the terms Indian tribe and unit of general local government have the meanings given those terms in section 102 of the Housing and Community Development Act of 1974 ( 42 U.S.C. 5302 ); the term qualified affordable housing means a housing development that consists of 5 or more dwelling units of which 20 percent or more are made available— for rental only by a low-income family (as defined in section 3(b) of the United States Housing Act of 1937 ( 42 U.S.C. 1437a(b) )); at a monthly rent amount that does not exceed 30 percent of the monthly adjusted income (as defined in such section 3(b)) of the tenant low-income family; and maintains affordability for residents who are low-income families for a period of not less than 30 years; and the term Secretary means the Secretary of Housing and Urban Development. The Secretary shall provide a grant to each eligible entity that— is within the area covered by an innovation center; and the Committee certifies is working in partnership with that innovation center. The amount of a grant provided to an eligible entity under clause

(i)for a fiscal year shall be equal to the allocation that the eligible entity receives under title I of the Housing and Community Development Act of 1974 ( 42 U.S.C. 5301 et seq.) for that fiscal year. The Secretary may not reduce the amount that any eligible entity receives under title I of the Housing and Community Development Act of 1974 ( 42 U.S.C. 5301 et seq.) because eligible entities receive grants under this subparagraph. An eligible entity shall use grant funds provided under subparagraph

(B)for the development and preservation of qualified affordable housing, including the construction of such housing, within the area covered by an innovation center, in accordance with title I of the Housing and Community Development Act of 1974 ( 42 U.S.C. 5301 et seq.) and after consultation with the innovation center. There are authorized to be appropriated such sums as may be necessary to carry out this paragraph for each fiscal year in which an innovation center designation is in effect. In this subparagraph, the term BUILD program means the program for national infrastructure investments (commonly known as the Better Utilizing Investments to Leverage Development (BUILD) discretionary grant program ) of the Department of Transportation. There is authorized to be appropriated to the Secretary of Transportation $300,000,000 for each of fiscal years 2022 through 2032 to carry out projects under the BUILD program in innovation centers. Amounts authorized to be appropriated under clause

(ii)shall supplement and not supplant any other amounts authorized to be appropriated for the BUILD program. There is authorized to be appropriated to the Secretary of Transportation $300,000,000 for each of fiscal years 2022 through 2032 to carry out projects under the nationally significant freight and highway projects program under section 117 of title 23, United States Code, in innovation centers. Amounts authorized to be appropriated under clause

(i)shall supplement and not supplant any other amounts authorized to be appropriated for the nationally significant freight and highway projects program under section 117 of title 23, United States Code. Section 604(b)(2) of title 23, United States Code, is amended— by striking The total and inserting the following: Except as provided in subparagraph (B), the total ; and by adding at the end the following: In the case of a project in an innovation center (as defined in section 2 of the Innovation Centers Acceleration Act ), the total amount of a line of credit under this section shall not exceed 49 percent of the reasonably anticipated eligible project costs. . Section 605 of title 23, United States Code, is amended by adding at the end the following: Notwithstanding any other provision of this chapter, in the case of a project in an innovation center (as defined in section 2 of the Innovation Centers Acceleration Act ), the Secretary shall not require the payment of any fees under section 603(b)(7), section 604(b)(9), or subsection (b). .

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