1. Short title This Act may be cited as the Reinvigorating Antibiotic and Diagnostic Innovation Act of 2017 . 2. Clinical testing expenses for qualified infectious disease products (a) In general Subpart D of part IV of subchapter A of chapter 1 of the Internal Revenue Code of 1986 is amended by adding at the end the following new section: 45S. Clinical testing expenses for qualified infectious disease products (a) General rule For purposes of section 38, the qualified infectious disease product credit determined under this section for the taxable year is an amount equal to 50 percent of the qualified clinical testing expenses for the taxable year. (b) Qualified clinical testing expenses For purposes of this section— (1) Qualified clinical testing expenses (A) In general Except as otherwise provided in this paragraph, the term qualified clinical testing expenses means the amounts which are paid or incurred by the taxpayer during the taxable year which would be described in subsection (b) of section 41 if such subsection were applied with the modifications set forth in subparagraph (B). (B) Modifications For purposes of subparagraph (A), subsection (b) of section 41 shall be applied— (i) by substituting clinical testing for qualified research each place it appears in paragraphs (2) and (3) of such subsection, and (ii) by substituting 100 percent for 65 percent in paragraph (3)(A) of such subsection. (C) Exclusion for amounts funded by grants, etc The term qualified clinical testing expenses shall not include any amount to the extent such amount is funded by any grant, contract, or otherwise by another person (or any governmental entity). (D) Special rule For purposes of this paragraph, section 41 shall be deemed to remain in effect for periods after enactment of this section. (2) Clinical testing (A) In general The term clinical testing means any human clinical testing— (i) which is carried out under an exemption for a drug being tested as an antibiotic or antifungal drug under section 505(i) of the Federal Food,