The "Mental Health Research Accelerator Act of 2025" introduces a new tax credit within the Internal Revenue Code to incentivize translational research focused on neurodegenerative diseases and psychiatric conditions. This credit, set at 25% of qualifying expenses, aims to accelerate the development of new therapeutics and devices for central nervous system disorders. It is designed to support research across all phases of the continuum, from basic discovery to clinical application. The bill establishes an aggregate national limitation for the credit, starting at $1 billion in 2026, increasing to $2 billion annually from 2027 through 2030, and returning to $1 billion in 2031. The Secretary of the Treasury, in consultation with health agencies, will allocate this limitation to applicants based on criteria such as scientific merit, emphasis on new treatments, and standards for repurposing existing drugs. Furthermore, the legislation encourages public-private partnerships, prioritizing collaborative efforts and the sharing of intellectual property involving tax-exempt entities. A key provision allows tax-exempt entities , including government bodies and 501(c)(3) organizations, to transfer their allocated credit to eligible project partners who participate in or fund the research. While expenses claimed under this new credit cannot also be used for the general research and development tax credit, they will contribute to calculating base period research expenses for future R&D credit eligibility. The credit is set to terminate for taxable years beginning after December 31, 2035, providing a defined period for this research incentive.