1. Refundable portion of research credit for small businesses engaging in specified medical research (a) In general Section 41 of the Internal Revenue Code of 1986 is amended by adding at the end the following new subsection: (i) Refundable portion for small businesses engaging in specified medical research (1) In general At the election of a medical research small business, the portion of the credit determined under this section for the taxable year which is properly allocable to specified medical research shall be treated (other than for purposes of section 280C) as a credit allowed under subpart C (and not this subpart). (2) Medical research small business For purposes of this subsection, the term medical research small business means any domestic C corporation— (A) which conducts any specified medical research during the taxable year, and (B) the gross receipts of which (determined under the rules of subsection (c)) for the taxable year do not exceed $1,000,000. (3) Specified medical research For purposes of this subsection, the term specified medical research means any qualified research with respect to qualified countermeasures (as defined in section 319F–1(a)(2) of the Public Health Service Act (42 U.S.C. 247d–6a(a)(2))). (4) Election Any election under this subsection for any taxable year— (A) shall specify the amount of the credit to which such election applies, (B) shall be made on or before the due date (including extensions) of the return of tax for the taxable year, (C) may not be made for any taxable year with respect to any portion of the credit determined under this section with respect to which an election is made under subsection (h), and (D) may be revoked only with the consent of the Secretary. (5) Regulations The Secretary shall prescribe such regulations for purposes of this subsection as may be necessary or appropriate for determining proper allocation to specified medical research of the portion of any credit allowed to a taxpayer for a taxable year under this section. . (b) Conforming