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). (2) Clinical testing The term clinical testing means any human clinical testing— (A) which is carried out with respect to a drug on a list submitted to the Secretary under subsection (b) of the Protecting America’s Life Saving Medicines Act of 2019 , (B) which occurs— (i) after the date such list is so submitted, and (ii) before the date on which an application with respect to such drug is approved under section 505(b) of such Act or, if the drug is a biological product, before the date on which a license for such drug is issued under section 351 of the Public Health Service Act. (c) Coordination with credit for increasing research expenditures (1) In general Except as provided in paragraph (2), any qualified clinical testing expenses for a taxable year to which an election under this section applies shall not be taken into account for purposes of determining the credit allowable under section 41 for such taxable year. (2) Expenses included in determining base period research expenses Any qualified clinical testing expenses for any taxable year which are qualified research expenses (within the meaning of section 41(b)) shall be taken