HR 629
112th CONGRESS
1st Session
H. R. 629
To amend the Internal Revenue Code of 1986 to modify the private
activity bond rules to except certain uses of intellectual property from the
definition of private business use.
IN THE HOUSE OF REPRESENTATIVES
February 10, 2011
Mr. CLEAVER introduced the following bill; which was referred to the Committee
on Ways and Means
A BILL
To amend the Internal Revenue Code of 1986 to modify the private
activity bond rules to except certain uses of intellectual property from the
definition of private business use.
Be it enacted by the Senate and House of Representatives of the United
States of America in Congress assembled,
SECTION 1. CERTAIN SCIENTIFIC USES EXCEPTED FROM PRIVATE BUSINESS USE FOR
PRIVATE ACTIVITY BONDS.
(a) In General- Paragraph (6) of section 141(b) of the Internal Revenue Code
of 1986 (defining the term `private business use') is amended by adding the
following new subparagraph:
`(C) CERTAIN SCIENTIFIC RESEARCH-
`(i) EXCEPTION- For purposes of this subsection, the term `private business
use' shall not include the receipt by a person (other than a natural
person) of a right to intellectual property created by scientific (within
the meaning of section 501(c)(3)) research conducted by a governmental
unit or 501(c)(3) organization, if one or more governmental units or
501(c)(3) organizations control (as defined in section 512(b)(13)(D))
such person.
`(ii) EFFECT ON OWNERSHIP REQUIREMENT- The receipt of a right described
in clause (i) by a person described therein shall not cause a bond to
fail to satisfy section 145(a)(1).'.
(b) Effective Date- The amendment made by this section shall apply to any
receipt of intellectual property after the date of the enactment of this Act.
END
