SECTION 2. BACKGROUND

.01 Section 46 of the Code provides that the amount of the investment credit for any taxable year is the sum of the credits listed in § 46. That list includes the qualifying therapeutic discovery project credit.

.02 The qualifying therapeutic discovery project credit is provided under § 48D. Section 48D(a) of the Code provides that the qualifying therapeutic discovery project credit for any taxable year is an amount equal to 50 percent of the qualified investment (as defined in § 48D(b)) for that taxable year with respect to any qualifying therapeutic discovery project (as defined in § 48D(c)(1)) of an eligible taxpayer (as defined in § 48D(c)(2)). The amount that is treated as a qualified investment shall not exceed the amount certified under section 5 of this notice as eligible for the credit under §48D.

.03 Section 48D(d)(1)(B) of the Code provides that the total amount of credits that may be allocated under the qualifying therapeutic discovery project program may not exceed $1 billion for the 2-year period beginning with 2009.

.04 Section 48D(d)(3) of the Code specifies the criteria that must be considered in determining the qualifying therapeutic discovery projects with respect to which qualified investments may be certified under § 48D(d)(1)(A).

.05 The at-risk rules in § 49 of the Code and the recapture and other special rules in § 50 apply to the qualifying therapeutic discovery project credit.

.06 Section 48D applies to amounts paid or incurred after December 31, 2008, in taxable years beginning after that date under section 9023(f) of the Affordable Care Act.

.07 Section 9023(e) of the Affordable Care Act provides that taxpayers may receive grants in lieu of qualified therapeutic discovery project credits.