Sec. 137701. Credit for public university research infrastructure
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Subpart D of part IV of subchapter A of chapter 1, as amended by the preceding provisions of this Act, is amended by adding at the end the following new section: For purposes of section 38, the public university research infrastructure credit determined under this section for a taxable year is an amount equal to 40 percent of the qualified cash contributions made by a taxpayer during such taxable year. For purposes of subsection (a), the qualified cash contribution for any taxable year is the aggregate amount contributed in cash by a taxpayer during such taxable year to a certified educational institution in connection with a qualifying project that, but for this section, would be treated as a charitable contribution for purposes of section 170(c).
Any qualified cash contributions made by a taxpayer under this section shall be taken into account for purposes of determining the percentage limitations under section 170(b). A contribution shall only be treated as a qualified cash contribution to the extent that it is designated as such by a certified educational institution under subsection (d). For purposes of this section— The term qualifying project means a project to purchase, construct, or improve research infrastructure property.
The term research infrastructure property means any portion of a property, building, or structure of an eligible educational institution, or any land associated with such property, building, or structure, that is used for research. The term eligible educational institution means— an institution of higher education (as such term is defined in section 101 or 102(c) of the Higher Education Act of 1965) that is a college or university described in section 511(a)(2)(B), or an organization described in section 170(b)(1)(A)(iv) or section 509(a)(3) to which authority has been delegated by an institution described in subparagraph
(A)for purposes of applying for or administering credit amounts on behalf of such institution. The term certified educational institution means an eligible educational institution which has been allocated a credit amount for a qualifying project and— has received a certification for such project under subsection (d)(2), and designates credit amounts to taxpayers for qualifying cash contributions toward such project under subsection (d)(4). Not later than 180 days after the date of the enactment of this section, the Secretary, after consultation with the Secretary of Education, shall establish a program to— certify and allocate credit amounts for qualifying projects to eligible educational institutions, and allow certified educational institutions to designate cash contributions for qualifying projects of such certified educational institutions as qualified cash contributions. The credit amounts allocated to a certified educational institution under subparagraph (A)(i) for all projects shall not exceed $50,000,000 per calendar year. The total amount of qualifying project credit amounts that may be allocated under subparagraph (A)(i) shall not exceed— $500,000,000 for each of calendar years 2022, 2023, 2024, 2025, and 2026, and $0 for each subsequent year. Any credit amounts described in subclause
(I)that are unallocated during a calendar year shall be carried to the succeeding calendar year and added to the limitation allowable under such subclause for such succeeding calendar year. The aggregate amount of cash contributions which are designated by a certified educational institution as qualifying cash contributions with respect to any qualifying project shall not exceed 250 percent of the credit amount allocated to such certified educational institution for a qualifying project under subparagraph (A)(i). Each eligible educational institution which applies for certification of a project under this paragraph shall submit an application in such time, form, and manner as the Secretary may require. The Secretary, after consultation with the Secretary of Education, shall select applications from eligible educational institutions— based on the extent of the expected expansion of an eligible educational institution’s targeted research within disciplines in science, mathematics, engineering, and technology, and in a manner that ensures consideration is given to eligible educational institutions with full-time student populations of less than 12,000. The Secretary, after consultation with the Secretary of Education, shall establish a process by which certified educational institutions shall designate cash contributions to such institutions as qualified cash contributions. The Secretary shall, upon allocating credit amounts to an applicant under this subsection, publicly disclose the identity of the applicant and the credit amount allocated to such applicant. Each certified educational institution shall, upon designating contributions of a taxpayer as qualified cash contributions under this subsection, publicly disclose the identity of the taxpayer and the amount of contributions designated in such time, form, and manner as the Secretary may require. The Secretary, after consultation with the Secretary of Education when applicable, shall prescribe such regulations and guidance as may be necessary or appropriate to carry out the purposes of this section, including regulations for— prevention of abuse, establishment of reporting requirements, establishment of selection criteria for applications, and disclosure of allocations. If at any time during the 5-year period beginning on the date of the allocation of credit amounts to a certified educational institution under subsection (d)(1)(A)(i) there is a noncompliance event with respect to such credit amounts, then the following rules shall apply: Any cash contribution designated as a qualifying cash contribution with respect to a qualifying project for which such credit amounts were allocated under subsection (d)(1)(A)(ii) shall be treated as unrelated business taxable income (as defined in section 512) of such certified educational institution. In the case of unused credit amounts described under paragraph (2)(A) and identified pursuant to subsection (g), the Secretary shall reallocate any portion of such unused credit amounts to certified educational institutions in lieu of imposing the general rule under subparagraph (A). For purposes of this subsection, the term noncompliance event means, with respect to a credit amount allocated to a certified educational institution— cash contributions equaling the amount of such credit amount are not designated as qualifying cash contributions within 2 years after December 31 of the year such credit amount is allocated, a qualifying project with respect to which such credit amount was allocated is not placed in service within either— 4 years after December 31 of the year such credit amount is allocated, or a period of time that the Secretary determines is appropriate, or the research infrastructure property placed in service as part of a qualifying project with respect to which such credit amount was allocated ceases to be used for research within five years after such property is placed in service. Not later than 5 years after the date of enactment of this section, the Secretary shall review the credit amounts allocated under this section as of such date. The Secretary may reallocate credit amounts allocated under this section if the Secretary determines, as of the date of the review in paragraph (1), that such credit amounts are subject to a noncompliance event. If the Secretary determines that credits under this section are available for reallocation pursuant to the requirements set forth in subparagraph (A), the Secretary is authorized to conduct an additional program for applications for certification. The Secretary shall not certify any project, or reallocate any credit amount, pursuant to this paragraph after December 31, 2031. No credit or deduction shall be allowed under any other provision of this chapter for any qualified cash contribution for which a credit is allowed under this section. For purposes of this section, rules similar to the rules of subsection
(d)of section 52 shall apply. This section shall not apply to qualified cash contributions made after December 31, 2033. . Subsection
(b)of section 38 , as amended by the preceding provisions of this Act, is amended by striking plus at the end of paragraph (38), by striking the period at the end of paragraph
(39)and inserting , plus , and by adding at the end the following new paragraph: the public university research infrastructure credit determined under section 45AA. . The table of sections for subpart D of part IV of subchapter A of chapter 1, as amended by the preceding provisions of this Act, is amended by adding at the end the following new item: Sec. 45AA. Public university research infrastructure credit. . The amendments made by this section shall apply to qualified cash contributions made after December 31, 2021.