Innovation Centers Acceleration Act
This bill establishes a program to advance economic development by designating nine cities as innovation centers and providing and modifying certain related grants. It also establishes the Innovation Center Selection Committee to designate these cities.
The innovation center designation entitles selected cities—and the businesses, research institutions, and other organizations that operate within them—to various federal funding and benefits for research activities, business and workforce development, and transportation infrastructure projects.
These benefits include expanding various tax credits and incentives for businesses. The bill also makes it easier for those businesses to access loans and other financial instruments to raise capital.
In addition, the bill establishes a grant program for local and tribal governments that partner with innovation centers to develop and preserve affordable housing. It also modifies existing grants, loans, and other programs that support transportation infrastructure to specifically target initiatives in innovation centers.
To strengthen American economic resiliency and equitably expand 
  economic opportunity by launching a national competition, promoting 
   State and local strategic planning, encouraging innovation by the 
  public and private sectors, and by substantially investing Federal 
                 resources in research and development.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Innovation Centers Acceleration 
Act''.

SEC. 2. DEFINITIONS.

    In this Act:
            (1) Committee.--The term ``Committee'' means the Innovation 
        Center Selection Committee established under section 3.
            (2) Eligible area.--The term ``eligible area'' means a 
        metropolitan statistical area that--
                    (A) has a population of not less than 500,000; and
                    (B) is not designated as an established tech hub.
            (3) Established tech hub.--The term ``established tech 
        hub'' means the 9 metropolitan statistical areas in the United 
        States with the largest total number of innovation sector jobs 
        in 2019.
            (4) Hispanic-serving institution.--The term ``Hispanic-
        serving institution'' has the meaning given the term in section 
        502 of the Higher Education Act of 1965 (20 U.S.C. 1101a).
            (5) Historically black college or university.--The term 
        ``historically Black college or university'' has the meaning 
        given the term ``part B institution'' in section 322 of the 
        Higher Education Act of 1965 (20 U.S.C. 1061).
            (6) Innovation center.--The term ``innovation center'' 
        means an eligible area designated by the Committee under 
        section 3(e).
            (7) Innovation sector job.--The term ``innovation sector 
        job'' means a job in the following research and development 
        sectors, as categorized under the North American Industry 
        Classification System:
                    (A) Basic chemical manufacturing (3251).
                    (B) Pesticide, fertilizer, and other agricultural 
                chemical manufacturing (3253).
                    (C) Pharmaceutical and medicine manufacturing 
                (3254).
                    (D) Computer and peripheral equipment manufacturing 
                (3341).
                    (E) Communications equipment manufacturing (3342).
                    (F) Semiconductor and other electronic components 
                manufacturing (3344).
                    (G) Navigational, measuring, electromedical, and 
                control instruments manufacturing (3345).
                    (H) Aerospace product and parts manufacturing 
                (3364).
                    (I) Software publishers (5112).
                    (J) Satellite telecommunications (5174).
                    (K) Data processing, hosting, and related services 
                (5182).
                    (L) Other information services (5191).
                    (M) Scientific research and development services 
                (5417).
            (8) STEM.--The term ``STEM'' means science, technology, 
        engineering, and mathematics.

SEC. 3. INNOVATION CENTER SELECTION COMMITTEE.

    (a) Establishment.--There is established the Innovation Center 
Selection Committee, which shall--
            (1) establish the global competitive edge of the United 
        States in the 21st century across a range of innovation sectors 
        critical to national and economic security;
            (2) enable 9 metropolitan statistical areas in the United 
        States to become innovation centers for global innovation 
        leadership and models for inclusive growth, equal opportunity, 
        and rising living standards for disadvantaged populations;
            (3) inspire, within metropolitan statistical areas in the 
        United States across the country, new and constructive 
        collaboration among local, State, and Federal government 
        entities, academia, and private industry by issuing a call for 
        innovation center proposals with clear, ambitious objectives;
            (4) carry out a transparent, competitive, fair, and 
        rigorous process for selecting innovation centers;
            (5) ensure the transparent, efficient and effective use of 
        taxpayer funds; and
            (6) empirically evaluate the effectiveness of innovation 
        centers through release of publicly available reports and data.
    (b) Membership.--
            (1) Composition.--
                    (A) Voting members.--The Committee shall be 
                composed of the following voting members:
                            (i) The Secretary of Commerce, who shall 
                        serve as chairperson of the Committee.
                            (ii) The Administrator of the Small 
                        Business Administration.
                            (iii) The Deputy Secretary for Housing and 
                        Urban Development.
                            (iv) The Director of the Community 
                        Development Financial Institution Fund.
                            (v) The Director of the National Science 
                        Foundation.
                            (vi) The Director of the National Institute 
                        of Standards and Technology.
                            (vii) The Director of the National Economic 
                        Council.
                            (viii) The Assistant Secretary of Commerce 
                        for Economic Development.
                            (ix) The Assistant Secretary for Employment 
                        and Training.
                            (x) The Director of the Office of Science 
                        and Technology Policy.
                            (xi) The Under Secretary of Defense for 
                        Research and Engineering.
                            (xii) The Under Secretary for Science of 
                        the Department of Energy.
                            (xiii) The Director of the National 
                        Institutes of Health.
                            (xiv) The Under Secretary for Science and 
                        Technology of the Department of Homeland 
                        Security.
                            (xv) The Administrator of the National 
                        Aeronautics and Space Administration.
            (2) Nonvoting members.--
                    (A) In general.--The Committee shall have 8 
                nonvoting members, of which, from among leaders of 
                labor organizations or research institutions, or 
                leaders from private industry or professional 
                societies--
                            (i) 2 shall be appointed by the majority 
                        leader of the Senate;
                            (ii) 2 shall be appointed by the minority 
                        leader of the Senate;
                            (iii) 2 shall be appointed by the Speaker 
                        of the House of Representatives; and
                            (iv) 2 shall be appointed by the minority 
                        leader of the House of Representatives.
                    (B) Term.--The nonvoting members appointed under 
                subparagraph (A)--
                            (i) shall serve for a term of 5 years; and
                            (ii) may be reappointed to subsequent 
                        terms.
                    (C) Vacancies.--A vacancy in the nonvoting 
                membership of the Committee shall be filled in the same 
                manner as the original appointment, but the individual 
                appointed to fill the vacancy shall serve only for the 
                unexpired portion of the term for which the 
                individual's predecessor was appointed.
                    (D) Deadline for appointments.--The nonvoting 
                members of the Committee shall be appointed under this 
                paragraph not later than 30 days after the date of 
                enactment of this Act.
            (3) Initial meeting.--Not later than 30 days after the date 
        on which all members of the Committee are appointed, the 
        Committee shall hold its first meeting.
    (c) Compensation.--A nonvoting member of the Committee appointed 
under subsection (b)(2) shall be allowed travel expenses, including per 
diem in lieu of subsistence, at rates authorized for employees of 
agencies under subchapter I of chapter 57 of title 5, United States 
Code, while away from their homes or regular places of business in the 
performance of services for the Committee.
    (d) Staff.--
            (1) In general.--The Committee may appoint a staff director 
        and other personnel as necessary to carry out the duties of the 
        Committee.
            (2) Member agencies.--The Department of Commerce, the 
        Department of Labor, the Department of the Treasury, the 
        Department of Housing and Urban Development, the Department of 
        Defense, the Department of Energy, the Department of Health and 
        Human Services, the Small Business Administration, and the 
        Department of Transportation shall provide necessary staffing 
        support to the Committee, as determined by the Committee.
    (e) Selection of Innovation Centers.--
            (1) In general.--The Committee shall select 9 eligible 
        areas to serve as innovation centers and receive the Federal 
        innovation supports described in section 4.
            (2) Application.--
                    (A) Request for proposals.--Not later than 3 months 
                after the date of enactment of this Act, the Committee 
                shall issue a request for applications from eligible 
                entities.
                    (B) Submission.--Each eligible area desiring to be 
                selected as an innovation center shall submit to the 
                Committee an application through a proposal committee 
                created by the eligible area, which shall include 
                representation from each State located in the eligible 
                area and each municipal government representing not 
                less than 200,000 individuals located in the eligible 
                area.
            (3) Selection criteria.--In selecting innovation centers 
        under this section, the Committee shall evaluate each applicant 
        based on--
                    (A) the performance of the applicant in--
                            (i) STEM spending per capita;
                            (ii) the number of patents per 100,000 
                        residents;
                            (iii) the share of the population with a 
                        Bachelor of Arts degree or a higher degree; and
                            (iv) the number of STEM university degrees 
                        per capita;
                    (B) a plan to use data-driven strategies to promote 
                innovation-based, advanced sector takeoff, focused on 
                local interplay of university, Federal research 
                institution, and industry core competencies;
                    (C) a plan to increase innovation readiness, 
                including expanding research and technology development 
                facilities and developing the local STEM workforce, 
                including through partnerships with entities with 
                demonstrated success of administering apprenticeship 
                and other workforce development models;
                    (D) a plan to build or improve areas that attract 
                and support workers and firms;
                    (E) a plan to foster racial equity and inclusive 
                growth, including by leveraging minority serving 
                institutions, preventing gentrification, combatting 
                segregation, promoting the inclusion of 
                underrepresented residents, and ensuring affordable 
                housing options;
                    (F) a plan to invest the financial resources of the 
                applicant;
                    (G) a plan to partner with local workforce 
                development boards to scale up training to meet new 
                workforce demands;
                    (H) a plan to incorporate and bring growth and 
                opportunity to a broad geographic area beyond the 
                limits of the metropolitan statistical area, including 
                rural areas, through improved transportation, high 
                speed internet access, other investments, and 
                partnerships; and
                    (I) the relative potential for the selection of the 
                innovation center to reverse a decline, or accelerate 
                growth, in innovation sector jobs.
            (4) Geographic diversity.--In selecting innovation centers 
        under this section, the Committee shall ensure a broad 
        geographic representation of the United States.
            (5) Site visits.--The Committee may conduct site visits to 
        eligible areas that are finalists for selection as an 
        innovation center.
            (6) Timeline for selection.--The Committee shall, by secret 
        ballot, vote to select the 9 innovation centers not later than 
        12 months after the date of enactment of this Act.
            (7) Evaluation and renewal.--
                    (A) In general.--Not later than 1 year after the 
                date of enactment of this Act, the Committee shall 
                establish evaluation and renewal criteria to measure--
                            (i) the progress of an innovation center 
                        toward becoming a center for technology 
                        innovation;
                            (ii) the effectiveness of an innovation 
                        center in translating innovation sector growth 
                        into broadly shared economic opportunity within 
                        the innovation center; and
                            (iii) the ethical and efficient use of 
                        Federal funds.
                    (B) Report to congress.--Beginning in the third 
                full year following the date of enactment of this Act, 
                and not less frequently than once every 3 years 
                thereafter, the Committee shall submit to Congress and 
                each agency represented on the Committee, and make 
                publicly available, a report on the progress of each 
                innovation center in meeting the objectives described 
                in paragraph (3).
                    (C) Evaluation.--
                            (i) In general.--During the third year in 
                        which an innovation center is in existence, the 
                        Committee shall conduct an evaluation based on 
                        established benchmarks for achieving the 
                        objectives described in paragraph (3) to 
                        determine whether the designation as an 
                        innovation center shall be renewed for 3 
                        additional years.
                            (ii) Failure to meet benchmarks.--An 
                        innovation center that fails to meet a majority 
                        of the benchmarks established under clause (i) 
                        shall not be renewed as an innovation center.
                    (D) Renewal limit.--An innovation center shall be 
                designated as such for a period of 3 years, and the 
                Committee may renew the designation for not more than 2 
                additional 3-year terms.
    (f) Final Report.--Not later than 1 year after the date on which 
all innovation centers have exhausted their designations and renewals 
as an innovation center, the Committee shall submit to Congress and 
each agency represented on the Committee, and make publicly available, 
a final cumulative report on the efficacy of the program.
    (g) Authorization of Appropriations.--There is authorized to be 
appropriated to the Committee for travel and administrative expenses 
related to carrying out the duties of the Committee--
            (1) $5,000,000 for each of the first 2 fiscal years 
        beginning after the date of enactment of this Act; and
            (2) $1,000,000 for each of the 8 fiscal years following the 
        2 fiscal years described in paragraph (1).

SEC. 4. FEDERAL INNOVATION SUPPORTS.

    (a) In General.--An innovation center shall be eligible for the 
Federal innovation supports described in this section.
    (b) Direct Federal Investment.--
            (1) National science foundation research funding.--
                    (A) Funding goal.--The Director of the National 
                Science Foundation shall pursue a goal of awarding 
                through a rigorous selection process, for each 
                innovation center that gets its designation renewed 
                continually for 3 terms, a total of $1,250,000,000 in 
                grant funds to entities located in that innovation 
                center by the end of the 9th year of the designation of 
                that innovation center, by proportionally increasing 
                the total amount of the grants awarded over the 9-year 
                period.
                    (B) Additional funding.--In addition to awarding 
                grants in pursuit of the goal described in subparagraph 
                (A), the Director shall award grants--
                            (i) with a focus on universities or other 
                        research institutions that commit to expanding 
                        research and workforce capabilities aligned 
                        with industries and technologies and with a 
                        preference for universities or institutions 
                        that are--
                                    (I) concentrated in an innovation 
                                center; or
                                    (II) key to national challenges; or
                            (ii) that include industry-university 
                        research partnership programs.
                    (C) Tracking.--In each year, the Director of the 
                National Science Foundation shall track the aggregate 
                amount of grants awarded by the Director to entities in 
                that year, disaggregated by innovation center.
                    (D) Authorization of additional appropriations.--
                There are authorized to be appropriated to carry out 
                this paragraph, in addition to amounts that would 
                otherwise be appropriated in a year for the National 
                Science Foundation, amounts as follows:
                            (i) For fiscal year 2022, $0.
                            (ii) For fiscal year 2023, $1,110,000,000.
                            (iii) For fiscal year 2024, $2,220,000,000.
                            (iv) For fiscal year 2025, $3,330,000,000.
                            (v) For fiscal year 2026, $4,440,000,000.
                            (vi) For fiscal year 2027, $5,550,000,000.
                            (vii) For fiscal year 2028, $6,660,000,000.
                            (viii) For fiscal year 2029, 
                        $7,770,000,000.
                            (ix) For fiscal year 2030, $8,880,000,000.
                            (x) For fiscal year 2031, $9,990,000,000.
            (2) National science foundation graduate research 
        fellowships and undergraduate research programs.--
                    (A) Expansion.--The Director of the National 
                Science Foundation shall expand graduate research 
                fellowships and programs focused on undergraduate 
                research opportunities, including--
                            (i) research experiences for 
                        undergraduates;
                            (ii) advanced technological education 
                        programs;
                            (iii) historically Black colleges and 
                        universities undergraduate programs; and
                            (iv) Hispanic-serving institutions.
                    (B) Allocation.--The amounts expended by the 
                Director to carry out subparagraph (A), 35 percent of 
                such amounts shall be expended for the expansion of 
                graduate research fellowships and undergraduate 
                research opportunities in innovation centers.
                    (C) Authorization of appropriations.--There are 
                authorized to be appropriated to carry out this 
                paragraph amounts as follows:
                            (i) In fiscal year 2023, $57,000,000.
                            (ii) In fiscal year 2024, $114,000,000.
                            (iii) In fiscal year 2025, $171,000,000.
                            (iv) In fiscal year 2026, $228,000,000.
                            (v) In fiscal year 2027, $285,000,000.
                            (vi) In fiscal year 2028, $342,000,000.
                            (vii) In fiscal year 2029, $399,000,000.
                            (viii) In fiscal year 2030, $456,000,000.
                            (ix) In fiscal year 2031, $513,000,000.
            (3) National science foundation industry-university 
        cooperative research centers program.--The Director of the 
        National Science Foundation shall consider the location of a 
        university within an innovation center to be a strength for 
        purposes of selection criteria under the Industry-University 
        Cooperative Research Centers program.
            (4) Small business innovation research.--Section 9(j) of 
        the Small Business Act (15 U.S.C. 638(j)) is amended by adding 
        at the end the following:
            ``(5) Modifications relating to innovation centers.--
                    ``(A) Definition.--In this paragraph, the term 
                `innovation center' has the meaning given the term in 
                section 2 of the Innovation Centers Acceleration Act.
                    ``(B) Requirement.--Not later than 6 months after 
                the date of enactment of the Innovation Centers 
                Acceleration Act, the Administrator shall modify the 
                policy directives issued pursuant to this subsection--
                            ``(i) to provide that, during the 10-year 
                        period beginning on the date of enactment of 
                        the Innovation Centers Acceleration Act, the 
                        location of a small business concern within an 
                        innovation center shall be considered a 
                        strength under the selection criteria for Phase 
                        I and Phase II proposals under the SBIR program 
                        of a Federal agency; and
                            ``(ii) to require the Administrator to 
                        track and publish on an annual basis the total 
                        value of SBIR awards made to small business 
                        concerns located in innovation centers.''.
            (5) Manufacturing usa program.--
                    (A) Definitions.--In this paragraph:
                            (i) Manufacturing usa program.--The term 
                        ``Manufacturing USA Program'' means the program 
                        established under section 34(b) of the National 
                        Institute of Standards and Technology Act (15 
                        U.S.C. 278s(b)).
                            (ii) Manufacturing usa institute.--The term 
                        ``Manufacturing USA institute'' means an 
                        institute described in section 34(d) of the 
                        National Institute of Standards and Technology 
                        Act (15 U.S.C. 278s(d)).
                    (B) Expansion.--Under section 34(e) of the National 
                Institute of Standards and Technology Act (15 U.S.C. 
                278s(e)), the Secretary shall award financial 
                assistance to assist in the establishment and support 
                of--
                            (i) 9 new Manufacturing USA institutes; or
                            (ii) a combination of satellites to 
                        existing Manufacturing USA institutes or new 
                        Manufacturing USA institutes.
                    (C) Selection.--
                            (i) In general.--Manufacturing USA 
                        institutes and satellites shall be identified 
                        and funded under subparagraph (B) from among 
                        proposals submitted to the Secretary for 
                        purposes of this paragraph.
                            (ii) Proposal elements.--Any proposal 
                        submitted to the Secretary in accordance with 
                        clause (i) shall include--
                                    (I) a plan for the institute or 
                                satellite concerned to support or 
                                otherwise align with existing 
                                Manufacturing USA institutes, including 
                                through--
                                            (aa) membership in, or 
                                        partnership or formal 
                                        affiliation with, an existing 
                                        Manufacturing USA institute; or
                                            (bb) a plan to reach a 
                                        segment, population, or 
                                        geographic area not already 
                                        covered by or engaged with 
                                        existing Manufacturing USA 
                                        institutes; and
                                    (II) a plan for cost-sharing for 
                                the activities of the institute or 
                                satellite concerned, including the 
                                sources of funds and amounts to be 
                                contributed.
                            (iii) Selection of satellites.--Any 
                        selection of a satellite to an existing 
                        Manufacturing USA institute under this 
                        subparagraph shall be made by the Secretary in 
                        consultation with exiting Manufacturing USA 
                        institutes.
                            (iv) Priority relating to innovation 
                        centers.--In identifying and funding a new 
                        Manufacturing USA institute or a combination of 
                        satellites to existing or new Manufacturing USA 
                        institutes under subparagraph (B), the 
                        Secretary shall give priority to proposals for 
                        identification and funding of Manufacturing USA 
                        institutes in an innovation center, in whole or 
                        in substantial part.
                            (v) Prevention of overlap and redundancy.--
                        In identifying and funding Manufacturing USA 
                        institutes or satellites to Manufacturing USA 
                        institutes under subparagraph (B), the 
                        Secretary shall, to the extent practicable, 
                        avoid overlap or redundancy in mission, 
                        technology focus, or funding with existing 
                        Manufacturing USA institutes.
                    (D) Amount of financial assistance.--
                            (i) New manufacturing usa institutes.--For 
                        each Manufacturing USA institute identified and 
                        funded under subparagraph (B), the Secretary 
                        may expend up to $70,000,000 during the period 
                        of fiscal years 2022 through 2033.
                            (ii) Manufacturing usa institute 
                        satellites.--For each Manufacturing USA 
                        institute satellite or expansion supported 
                        under subparagraph (B), the Secretary may 
                        expend up to $25,000,000 during the period of 
                        fiscal years 2022 through 2033.
                    (E) Allocation.--Not less than 33 percent of the 
                financial assistance provided under subparagraph (B) 
                shall be for identifying and funding Manufacturing USA 
                institutes in innovation centers.
            (6) Manufacturing universities.--The Secretary of Commerce 
        and the Secretary of Defense shall consider the location of a 
        university within an innovation center to be a strength for 
        purposes of selection criteria under the Manufacturing 
        Universities Program.
            (7) Minority business development agency.--
                    (A) In general.--The National Director of the 
                Minority Business Development Agency may, acting 
                through the Inner City Innovation Hub program, award 
                not more than 2 grants to eligible entities located 
                within each innovation center.
                    (B) Amount of grant.--A grant awarded under 
                subparagraph (A) may not exceed $1,500,000.
                    (C) Authorization of appropriations.--There are 
                authorized to be appropriated to the National Director 
                of the Minority Business Development Agency $27,000,000 
                for each of fiscal years 2023 through 2031.
            (8) Additional regional innovations strategies grants.--
                    (A) Definition of innovation center.--Section 4 of 
                the Stevenson-Wydler Technology Innovation Act of 1980 
                (15 U.S.C. 3703) is amended by adding at the end the 
                following:
            ``(12) `Innovation center' has the meaning given the term 
        in section 2 of the Innovation Centers Acceleration Act.''.
                    (B) Grants.--Section 27 of the Stevenson-Wydler 
                Technology Innovation Act of 1980 (15 U.S.C. 3722) is 
                amended--
                            (i) in subsection (c)--
                                    (I) in paragraph (1), by striking 
                                ``As part of the program'' and 
                                inserting the following:
                    ``(A) In general.--As part of the program''; and
                                    (II) by adding at the end the 
                                following:
                    ``(B) Innovation center grants.--As a part of the 
                program established pursuant to subsection (b), the 
                Assistant Secretary of Commerce for Economic 
                Development may award grants, on a competitive basis, 
                to eligible recipients described in subsection 
                (a)(1)(D) located within innovation centers.''; and
                            (ii) in subsection (h)--
                                    (I) by striking ``From amounts 
                                appropriated'' and inserting the 
                                following:
            ``(1) In general.--From amounts appropriated''; and
                                    (II) by adding at the end the 
                                following:
            ``(2) Innovation center grants.--There are authorized to be 
        appropriated to the Secretary to award grants under subsection 
        (c)(1)(B) $5,000,000 for each of fiscal years 2023 through 
        2031.''.
            (9) Workforce investment activities in consultation with 
        innovation centers.--
                    (A) Youth workforce activities.--Section 129 of the 
                Workforce Innovation and Opportunity Act (29 U.S.C. 
                3164) is amended by adding at the end the following:
    ``(d) Youth Workforce Activities in Consultation With Innovation 
Centers.--
            ``(1) Funding.--
                    ``(A) In general.--Using funds made available under 
                section 136(d), the Secretary shall provide a grant to 
                each local area that--
                            ``(i) is within the area covered by an 
                        innovation center selected under subsection (e) 
                        of section 3 of the Innovation Centers 
                        Acceleration Act; and
                            ``(ii) the Innovation Center Selection 
                        Committee established under that section 3 
                        certifies is working in partnership with that 
                        innovation center.
                    ``(B) Amount.--The amount of the grant for a fiscal 
                year shall be equal to the allocation that the local 
                area receives under section 128(b) for that fiscal 
                year.
                    ``(C) Prohibition.--The Secretary may not reduce 
                the amount that any local area receives through an 
                allocation under section 128(b) because local areas 
                described in subparagraph (A) receive grants under this 
                subsection.
            ``(2) Use of funds.--The local area shall use the grant 
        funds in accordance with subsection (c), after consultation 
        with the innovation center.''.
                    (B) Adult and dislocated worker employment and 
                training activities.--Section 134 of the Workforce 
                Innovation and Opportunity Act (29 U.S.C. 3174) is 
                amended by adding at the end the following:
    ``(e) Adult and Dislocated Worker Employment and Training 
Activities in Consultation With Innovation Centers.--
            ``(1) Funding.--
                    ``(A) In general.--Using funds made available under 
                section 136(d), the Secretary shall provide a grant to 
                each local area that--
                            ``(i) is within the area covered by an 
                        innovation center selected under subsection (e) 
                        of section 3 of the Innovation Centers 
                        Acceleration Act; and
                            ``(ii) the Innovation Center Selection 
                        Committee established under that section 3 
                        certifies is working in partnership with that 
                        innovation center.
                    ``(B) Amount.--The amount of the grant for a fiscal 
                year shall be equal to the sum of the allocations that 
                the local area receives under paragraphs (1) and (2) of 
                section 133(b) for that fiscal year.
                    ``(C) Prohibition.--The Secretary may not reduce 
                the amount that any local area receives through an 
                allocation under paragraph (1) or (2) of section 
                133(b)(3) because local areas described in subparagraph 
                (A) receive grants under this subsection.
            ``(2) Use of funds.--The local area shall use the grant 
        funds in accordance with subsections (b), (c), and (d), after 
        consultation with the innovation center.''.
                    (C) Authorization of appropriations.--Section 136 
                of the Workforce Innovation and Opportunity Act (29 
                U.S.C. 3181) is amended--
                            (i) in subsections (a), (b), and (c), by 
                        inserting before the first comma the following: 
                        ``(except for activities funded from amounts 
                        appropriated under subsection (d))''; and
                            (ii) by adding at the end the following:
    ``(d) Workforce Investment Activities in Consultation With 
Innovation Centers.--There are authorized to be appropriated to carry 
out sections 129(d) and 134(e) such sums as may be necessary for each 
fiscal year that an innovation center designation is in effect.''.
            (10) Additional stem apprenticeship grants.--Section 28 of 
        the Stevenson-Wydler Technology Innovation Act of 1980 (15 
        U.S.C. 3723) is amended by adding at the end the following:
    ``(e) Innovation Center Grants.--
            ``(1) Definition of eligible entity.--In this subsection, 
        the term `eligible entity' means an eligible recipient that 
        is--
                    ``(A) described in subsection (b)(4); and
                    ``(B) located within an innovation center.
            ``(2) Grants authorized.--The Assistant Secretary of 
        Commerce for Economic Development shall provide to not less 
        than 1 eligible entity located in each innovation center a 
        grant to develop infrastructure to expand STEM apprenticeship 
        programs.
            ``(3) Amount; renewal.--
                    ``(A) Amount.--The amount of a grant under 
                paragraph (2) shall be not more than $5,000,000 for 
                each year over a 3-year period.
                    ``(B) Renewal.--The Secretary may provide an 
                eligible entity that receives a grant under paragraph 
                (2) not more than 2 additional grants under that 
                paragraph.
            ``(4) Preference.--The Assistant Secretary of Commerce for 
        Economic Development shall give preference for a grant under 
        this subsection to an eligible entity with demonstrated success 
        of administering apprenticeship and other workforce development 
        models and that demonstrates a commitment to serving 
        individuals--
                    ``(A) from underrepresented populations; or
                    ``(B) who face barriers to employment, including--
                            ``(i) long-term unemployment;
                            ``(ii) past incarceration; or
                            ``(iii) veteran or disability status.
    ``(f) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out this section $50,000,000 for each of fiscal 
years 2023 through 2031.''.
            (11) National institutes of health research funding.--
                    (A) Funding goal.--The Director of the National 
                Institutes of Health shall pursue a goal of awarding 
                through a rigorous selection process and subject to 
                peer review, for each innovation center that gets its 
                designation renewed continually for 3 terms, a total of 
                $1,250,000,000 in meritorious research awards in 
                priority areas of biomedical science to entities 
                located in that innovation center by the end of the 9th 
                year of the designation of that innovation center, by 
                proportionally increasing the total amount of the 
                grants, contracts, or other transactions awarded in 
                each innovation center each year over the 9-year 
                period.
                    (B) Additional funding.--In addition to awarding 
                grants, contracts, or other transactions in pursuit of 
                the goal described in subparagraph (A), the Director of 
                the National Institutes of Health shall award grants--
                            (i) with a focus on universities or other 
                        research institutions that commit to expanding 
                        research capabilities aligned with industries 
                        and technologies and with a preference for 
                        universities or institutions that are--
                                    (I) concentrated in an innovation 
                                center; or
                                    (II) key to national challenges; or
                            (ii) that include industry-university 
                        research partnership programs.
                    (C) Tracking.--In each year, the Director of the 
                National Institutes of Health shall track the aggregate 
                amount of grants, contracts, or other transactions 
                awarded by the Director to entities in that year, 
                disaggregated by innovation center.
                    (D) Authorization of additional appropriations.--
                There are authorized to be appropriated to carry out 
                this paragraph, in addition to amounts that would 
                otherwise be appropriated in a year for the National 
                Institutes of Health, amounts as follows:
                            (i) For fiscal year 2022, $0.
                            (ii) For fiscal year 2023, $140,000,000.
                            (iii) For fiscal year 2024, $280,000,000.
                            (iv) For fiscal year 2025, $420,000,000.
                            (v) For fiscal year 2026, $560,000,000.
                            (vi) For fiscal year 2027, $700,000,000.
                            (vii) For fiscal year 2028, $840,000,000.
                            (viii) For fiscal year 2029, $980,000,000.
                            (ix) For fiscal year 2030, $1,120,000,000.
                            (x) For fiscal year 2031, $1,260,000,000.
    (c) Tax Incentives.--
            (1) New markets tax credit allocations.--Subsection (f) of 
        section 45D of the Internal Revenue Code of 1986 is amended by 
        adding at the end the following new paragraph:
            ``(4) Special allocation for innovation centers.--In the 
        case of any calendar year beginning after 2021--
                    ``(A) the limitation under paragraph (1) (including 
                in calendar years for which the limitation under 
                paragraph (1) is zero) shall be increased by 
                $50,000,000 for each metropolitan statistical area 
                which is designated as an innovation center under 
                section 3(e) of the Innovation Centers Acceleration Act 
                for such calendar year, and
                    ``(B) the additional limitation under subparagraph 
                (A) shall be divided equally among such innovation 
                centers and allocated (as provided in paragraph (2)) 
                among qualified community development entities in such 
                innovation centers.''.
            (2) Research credit.--
                    (A) In general.--Section 41 of such Code is amended 
                by adding at the end the following new subsection:
    ``(i) Special Rules Relating to Innovation Centers.--
            ``(1) In general.--In the case of--
                    ``(A) any qualified research expenses paid or 
                incurred for qualified services or qualified research,
                    ``(B) any basic research payments for basic 
                research, and
                    ``(C) amounts paid or incurred by the taxpayer in 
                carrying on any trade or business of the taxpayer 
                (including as contributions) to an energy research 
                consortium for energy research,
        during the taxable year at a location in a metropolitan 
        statistical area which is an innovation center for such taxable 
        year, this section shall be applied as provided in paragraphs 
        (2) and (3).
            ``(2) Credit rate.--Subsection (a) shall be applied by 
        substituting `30 percent' for `20 percent' each place it 
        appears.
            ``(3) Alternative simplified credit.--Subsection (c)(4) 
        shall be applied--
                    ``(A) by substituting `21 percent' for `14 percent' 
                in subparagraph (A), and
                    ``(B) by substituting `9 percent' for `6 percent' 
                in subparagraph (B)(ii).
            ``(4) Credit for qualified small businesses.--In the case 
        of a trade or business located primarily within a metropolitan 
        statistical area which is an innovation center for the taxable 
        year, subsection (h) shall be applied--
                    ``(A) by substituting `$15,000,000' for 
                `$5,000,000' in paragraph (3)(A)(i)(I),
                    ``(B) by substituting `8-taxable-year' for `5-
                taxable-year' in paragraph (3)(A)(i)(II), and
                    ``(C) by substituting `$500,000' for `$250,000' 
                both places it appears in paragraphs (4)(B)(i) and 
                (5)(B)(ii).
            ``(5) Innovation center.--For purposes of this subsection, 
        for any taxable year, the term `innovation center' means a 
        metropolitan statistical area with a designation as an 
        innovation center under section 3(e) of the Innovation Centers 
        Acceleration Act in effect for calendar years beginning in such 
        year.
            ``(6) Termination.--This subsection shall not apply to 
        expenses paid or incurred after December 31, 2030.''.
                    (B) Training included as research expenses.--
                            (i) In general.--Paragraph (1) of section 
                        41(b) of such Code is amended--
                                    (I) by striking ``and'' at the end 
                                of subparagraph (A),
                                    (II) by striking the period at the 
                                end of subparagraph (B) and inserting 
                                ``, and'', and
                                    (III) by adding at the end the 
                                following new subparagraph:
                    ``(C) employee training expenses.''.
                            (ii) Employee training expenses.--
                        Subsection (b) of section 41 of such Code is 
                        amended--
                                    (I) by redesignating paragraph (4) 
                                as paragraph (5), and
                                    (II) by inserting after paragraph 
                                (3) the following new paragraph:
            ``(4) Employee training expenses.--
                    ``(A) In general.--The term `employee training 
                expenses' means any wages paid or incurred to an 
                employee in connection with training for the employee 
                to perform qualified services described in clause (i) 
                or (ii) of paragraph (2)(B). Such term does not include 
                wages paid or incurred in connection with general 
                employer training which does not specifically pertain 
                to such qualified services.
                    ``(B) Wages, etc.--For purposes of this paragraph--
                            ``(i) In general.--The term `wages' shall 
                        not include any amount taken into account under 
                        paragraph (2)(A)(i).
                            ``(ii) Rules.--The rules of paragraph 
                        (2)(D) shall apply.
                    ``(C) Termination.--The term `employee training 
                expenses' does not include any wages paid or incurred 
                after December 31, 2030.''.
                    (C) Effective date.--The amendments made by this 
                paragraph shall apply to taxable years beginning after 
                December 31, 2021.
    (d) Regulatory Modernization.--
            (1) Definition.--In this paragraph, the term ``startup'' 
        means a small business concern (as defined in section 3(a) of 
        the Small Business Act (15 U.S.C. 632(a))) that--
                    (A) has been in existence for less than 3 years; 
                and
                    (B) has annual average gross receipts of less than 
                $3,000,000.
            (2) Requirement.--Notwithstanding any other provision of 
        law, in the case of a startup that is operating within an 
        innovation center, any requirement related to a Federal grant 
        that prohibits the use of university laboratory or other 
        research assets purchased or supposed by the grant from being 
        used for commercial purposes for an initial time period shall 
        be waived.
    (e) Business Access to Capital.--
            (1) Innovation center debentures.--
                    (A) In general.--Section 303 of the Small Business 
                Investment Act of 1958 (15 U.S.C. 683) is amended by 
                adding at the end the following:
    ``(l) Innovation Center Debentures.--In addition to any other 
authority under this Act, on and after the first day of the first 
fiscal year beginning after the date of enactment of this subsection, a 
small business investment company may issue innovation center 
debentures.''.
                    (B) Definitions.--Section 103 of the Small Business 
                Investment Act of 1958 (15 U.S.C. 662) is amended--
                            (i) in paragraph (19), by striking ``and'' 
                        at the end;
                            (ii) in paragraph (20), by striking the 
                        period at the end and inserting a semicolon; 
                        and
                            (iii) by adding at the end the following:
            ``(21) the term `innovation center debenture' means a 
        deferred interest debenture that--
                    ``(A) is issued at a discount;
                    ``(B) has a 5-year maturity or a 10-year maturity;
                    ``(C) requires no interest payment or annual charge 
                for the first 5 years;
                    ``(D) is restricted to companies located within an 
                innovation center, as defined in section 2 of the 
                Innovation Centers Acceleration Act; and
                    ``(E) is issued at no cost (as defined in section 
                502 of the Credit Reform Act of 1990 (2 U.S.C. 661a)) 
                with respect to purchasing and guaranteeing the 
                debenture; and
            ``(22) the term `innovation center startup' means any 
        company that--
                    ``(A) is primarily located within an innovation 
                center (as defined in section 2 of the Innovation 
                Centers Acceleration Act);
                    ``(B) is innovation- or technology-oriented; and
                    ``(C) has been in existence for less than 5 
                years.''.
                    (C) Exemption from capital requirements.--Section 
                301(c) of the Small Business Investment Act of 1958 (15 
                U.S.C. 681(c)) is amended by adding at the end the 
                following:
            ``(5) Exception for applications located in innovation 
        centers.--An applicant that is located in an innovation center 
        (as defined in section 2 of the Innovation Centers Acceleration 
        Act) and that does not satisfy the requirements of section 
        302(a) shall be limited to 1 tier of leverage available under 
        section 302(b) until the applicant meets the requirements of 
        section 302(a).''.
            (2) 7(a) loan financing for innovation center startups.--
                    (A) Loan guarantee percentage.--Section 7(a)(2) of 
                the Small Business Act (15 U.S.C. 636(a)(2)) is 
                amended--
                            (i) in subparagraph (A), in the matter 
                        preceding clause (i), by striking ``and (F)'' 
                        and inserting ``(F), and (G)''; and
                            (ii) by adding at the end the following:
                    ``(G) Participation for innovation center 
                startups.--
                            ``(i) Definition.--In this subparagraph, 
                        the term `innovation center startup' means any 
                        small business concern that--
                                    ``(I) is primarily located within 
                                an innovation center (as defined in 
                                section 2 of the Innovation Centers 
                                Acceleration Act);
                                    ``(II) is innovation- or 
                                technology-oriented; and
                                    ``(III) has been in existence for 
                                less than 5 years.
                            ``(ii) Participation.--In an agreement to 
                        participate in a loan on a deferred basis under 
                        this subsection for an innovation center 
                        startup, the participation by the 
                        Administration shall be 90 percent.''.
                    (B) Guarantee fee reduction.--Section 7(a)(18) of 
                the Small Business Act (15 U.S.C. 636(a)(18)) is 
                amended--
                            (i) in subparagraph (A), by striking ``With 
                        respect'' and inserting ``Except as provided in 
                        subparagraph (C), with respect''; and
                            (ii) by adding at the end the following:
                    ``(C) Innovation center startups.--With respect to 
                a loan guaranteed under this subsection for a small 
                business concern described in paragraph (2)(G)(i)--
                            ``(i) the Administration may not collect a 
                        guarantee fee under this paragraph for a loan 
                        of not more than $350,000; and
                            ``(ii) for a loan of more than $350,000, 
                        the Administration shall collect a guarantee 
                        fee under this paragraph equal to 50 percent of 
                        the guarantee fee that the Administration would 
                        otherwise collect for the loan.''.
            (3) Certified development company loans for innovation 
        center startups.--
                    (A) Maximum loan amount.--Section 502(2)(A) of the 
                Small Business Investment Act of 1958 (15 U.S.C. 
                696(2)(A)) is amended--
                            (i) in clause (iv), by striking ``and'' at 
                        the end;
                            (ii) in clause (v), by striking the period 
                        at the end and inserting ``; and''; and
                            (iii) by adding at the end the following:
                            ``(vi) $10,000,000 for each project of an 
                        innovation center startup.''.
                    (B) Contribution requirement.--Section 502(3)(C) of 
                the Small Business Investment Act of 1958 (15 U.S.C. 
                696(3)(C)) is amended--
                            (i) in clause (iii), by striking ``or'' at 
                        the end;
                            (ii) by redesignating clause (iv) as clause 
                        (v); and
                            (iii) by inserting after clause (iii) the 
                        following:
                            ``(iv) for an innovation startup--
                                    ``(I) at least 5 percent of the 
                                total cost of the project financed, if 
                                the innovation startup has been in 
                                operation for a period of 2 years or 
                                less; and
                                    ``(II) at least 5 percent of the 
                                total cost of the project financed if 
                                the project involves the construction 
                                of a limited or single purpose building 
                                or structure.''.
            (4) SBA resources.--
                    (A) In general.--The Small Business Administration 
                shall provide innovation center startups (as defined in 
                section 7(a)(2)(G) of the Small Business Act (15 U.S.C. 
                636(a)(2)(G))) access to financing resources of the 
                Administration and assist those startups in navigating 
                the application process.
                    (B) Authorization of appropriations.--There is 
                authorized to be appropriated to the Small Business 
                Administration $2,500,000 for fiscal year 2022 and 
                every fiscal year thereafter to carry out subparagraph 
                (A).
    (f) Neighborhood, Property, and Infrastructure Modernization.--
            (1) Community development block grant funding.--
                    (A) Definitions.--In this paragraph--
                            (i) the term ``eligible entity'' means a 
                        unit of general local government or Indian 
                        tribe that receives assistance under title I of 
                        the Housing and Community Development Act of 
                        1974 (42 U.S.C. 5301 et seq.);
                            (ii) the terms ``Indian tribe'' and ``unit 
                        of general local government'' have the meanings 
                        given those terms in section 102 of the Housing 
                        and Community Development Act of 1974 (42 
                        U.S.C. 5302);
                            (iii) the term ``qualified affordable 
                        housing'' means a housing development that 
                        consists of 5 or more dwelling units of which 
                        20 percent or more are made available--
                                    (I) for rental only by a low-income 
                                family (as defined in section 3(b) of 
                                the United States Housing Act of 1937 
                                (42 U.S.C. 1437a(b)));
                                    (II) at a monthly rent amount that 
                                does not exceed 30 percent of the 
                                monthly adjusted income (as defined in 
                                such section 3(b)) of the tenant low-
                                income family; and
                                    (III) maintains affordability for 
                                residents who are low-income families 
                                for a period of not less than 30 years; 
                                and
                            (iv) the term ``Secretary'' means the 
                        Secretary of Housing and Urban Development.
                    (B) Funding.--
                            (i) In general.--The Secretary shall 
                        provide a grant to each eligible entity that--
                                    (I) is within the area covered by 
                                an innovation center; and
                                    (II) the Committee certifies is 
                                working in partnership with that 
                                innovation center.
                            (ii) Amount.--The amount of a grant 
                        provided to an eligible entity under clause (i) 
                        for a fiscal year shall be equal to the 
                        allocation that the eligible entity receives 
                        under title I of the Housing and Community 
                        Development Act of 1974 (42 U.S.C. 5301 et 
                        seq.) for that fiscal year.
                            (iii) Prohibition.--The Secretary may not 
                        reduce the amount that any eligible entity 
                        receives under title I of the Housing and 
                        Community Development Act of 1974 (42 U.S.C. 
                        5301 et seq.) because eligible entities receive 
                        grants under this subparagraph.
                    (C) Use of funds.--An eligible entity shall use 
                grant funds provided under subparagraph (B) for the 
                development and preservation of qualified affordable 
                housing, including the construction of such housing, 
                within the area covered by an innovation center, in 
                accordance with title I of the Housing and Community 
                Development Act of 1974 (42 U.S.C. 5301 et seq.) and 
                after consultation with the innovation center.
                    (D) Authorization of appropriations.--There are 
                authorized to be appropriated such sums as may be 
                necessary to carry out this paragraph for each fiscal 
                year in which an innovation center designation is in 
                effect.
            (2) Infrastructure financing.--
                    (A) BUILD grants.--
                            (i) Definition of build program.--In this 
                        subparagraph, the term ``BUILD program'' means 
                        the program for national infrastructure 
                        investments (commonly known as the ``Better 
                        Utilizing Investments to Leverage Development 
                        (BUILD) discretionary grant program'') of the 
                        Department of Transportation.
                            (ii) Authorization of appropriations.--
                        There is authorized to be appropriated to the 
                        Secretary of Transportation $300,000,000 for 
                        each of fiscal years 2023 through 2033 to carry 
                        out projects under the BUILD program in 
                        innovation centers.
                            (iii) Supplement, not supplant.--Amounts 
                        authorized to be appropriated under clause (ii) 
                        shall supplement and not supplant any other 
                        amounts authorized to be appropriated for the 
                        BUILD program.
                    (B) INFRA grants.--
                            (i) Authorization of appropriations.--There 
                        is authorized to be appropriated to the 
                        Secretary of Transportation $300,000,000 for 
                        each of fiscal years 2023 through 2033 to carry 
                        out projects under the nationally significant 
                        freight and highway projects program under 
                        section 117 of title 23, United States Code, in 
                        innovation centers.
                            (ii) Supplement, not supplant.--Amounts 
                        authorized to be appropriated under clause (i) 
                        shall supplement and not supplant any other 
                        amounts authorized to be appropriated for the 
                        nationally significant freight and highway 
                        projects program under section 117 of title 23, 
                        United States Code.
                    (C) TIFIA program.--
                            (i) Lines of credit.--Section 604(b)(2) of 
                        title 23, United States Code, is amended--
                                    (I) by striking ``The total'' and 
                                inserting the following:
                    ``(A) In general.--Except as provided in 
                subparagraph (B), the total''; and
                                    (II) by adding at the end the 
                                following:
                    ``(B) Projects in innovation centers.--In the case 
                of a project in an innovation center (as defined in 
                section 2 of the Innovation Centers Acceleration Act), 
                the total amount of a line of credit under this section 
                shall not exceed 49 percent of the reasonably 
                anticipated eligible project costs.''.
                            (ii) Fee waiver.--Section 605 of title 23, 
                        United States Code, is amended by adding at the 
                        end the following:
    ``(g) Projects in Innovation Centers.--Notwithstanding any other 
provision of this chapter, in the case of a project in an innovation 
center (as defined in section 2 of the Innovation Centers Acceleration 
Act), the Secretary shall not require the payment of any fees under 
section 603(b)(7), section 604(b)(9), or subsection (b).''.
                                 <all>
Innovation Centers Acceleration Act
To strengthen American economic resiliency and equitably expand economic opportunity by launching a national competition, promoting State and local strategic planning, encouraging innovation by the public and private sectors, and by substantially investing Federal resources in research and development.
Innovation Centers Acceleration Act
Rep. Morelle, Joseph D.