H.R. 2085 — Mental Health Research Accelerator Act of 2025

This section establishes a new general business credit under new IRC §45BB for 25% of qualified expenses paid or incurred for translational research (i.e., bridging basic science to clinical applications) on neurodegenerative diseases (e.g., Alzheimer's, Parkinson's) and psychiatric conditions (e.g., schizophrenia, depression). The credit is subject to annual aggregate national limitations allocated by the Treasury Secretary (in consultation with HHS, FDA, and NIH) based on scientific merit, coverage of all research phases, emphasis on new therapeutics and devices for central nervous system disorders, standards for drug/device repurposing, and public-private partnerships: $1 billion for 2026, $2 billion for 2027-2030, and $1 billion for 2031 (with carryover of unused amounts to the next year). It allows tax-exempt entities (e.g., governments, 501(c)(3) organizations) to transfer the credit to eligible taxable project partners; coordinates with the IRC §41 research credit by excluding qualified expenses from the current-year §41 calculation (while including them in base-period amounts for future years); and disallows deductions under IRC §280C(i) for the credited expense portion. The credit terminates for taxable years beginning after December 31, 2035.