H.R. 1773 (112th): Made in America Act of 2011

HR 1773 IH

To amend the Internal Revenue Code of 1986 to make the research credit permanent, increase expensing for small businesses, reduce corporate tax rates, and for other purposes.

May 5, 2011

Mr. GERLACH (for himself and Mr. KISSELL) introduced the following bill; which was referred to the Committee on Ways and Means

To amend the Internal Revenue Code of 1986 to make the research credit permanent, increase expensing for small businesses, reduce corporate tax rates, and for other purposes.

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 ‘Made in America Act of 2011’.

SEC. 2. RESEARCH CREDIT MADE PERMANENT.

(a) In General- Section 41 of the Internal Revenue Code of 1986 (relating to credit for increasing research activities) is amended by striking subsection (h).

(b) Conforming Amendment- Paragraph (1) of section 45C(b) of such Code is amended by striking subparagraph (D).

(c) Effective Date- The amendments made by this section shall apply to amounts paid or incurred after December 31, 2010, and to taxable years beginning after such date.

SEC. 3. INCREASE IN RATE OF ALTERNATIVE SIMPLIFIED CREDIT.

(a) In General- Subparagraph (A) of section 41(c)(5) of the Internal Revenue Code of 1986 (relating to election of alternative simplified credit) is amended by striking ‘14 percent (12 percent in the case of taxable years ending before January 1, 2009)’ and inserting ‘20 percent’.

(b) Effective Date- The amendment made by this section shall apply to taxable years ending after December 31, 2010.

SEC. 4. REPEAL THE ALTERNATIVE INCREMENTAL CREDIT.

(a) In General- Section 41(c) of the Internal Revenue Code of 1986, as amended by section 3, is amended by striking paragraph (4) and by redesignating paragraphs (5), (6), and (7) as paragraphs (4), (5), and (6), respectively.

(b) Conforming Amendment- Section 41(c)(4)(C) of such Code, as redesignated by subsection (a), is amended by striking the last sentence.

(c) Effective Date- The amendments made by this section shall apply to taxable years beginning after December 31, 2010.

SEC. 5. INCREASED SECTION 179 EXPENSING MADE PERMANENT.

(a) Dollar Limitation- Paragraph (1) of section 179(b) of the Internal Revenue Code of 1986 is amended by striking ‘shall not exceed--’ and all that follows and inserting ‘shall not exceed $250,000 ($500,000 in the case of taxable years beginning in 2010 or 2011).’.

(b) Phaseout Threshold- Paragraph (2) of section 179(b) of such Code is amended by striking ‘exceeds--’ and all that follows and inserting ‘exceeds $800,000 ($2,000,000 in the case of taxable years beginning in 2010 or 2011).’.

(c) Conforming Amendments- Subparagraph (A) of section 179(b)(6) of such Code is amended--

(1) by striking ‘beginning in calendar year 2012, the $125,000 and $500,000 amounts’ and inserting ‘beginning in a calendar year after 2011, the $250,000 and $800,000 amounts’, and

(2) by striking ‘calendar year 2006’ and inserting ‘calendar year 2007’.

(d) Effective Date- The amendments made by this section shall apply to taxable years beginning after December 31, 2010.

SEC. 6. REDUCTION IN TOP CORPORATE MARGINAL RATE.

(a) In General- Paragraph (1) of section 11(b) of the Internal Revenue Code of 1986 (relating to amount of tax) is amended--

(1) by inserting ‘and’ at the end of subparagraph (B),

(2) by striking subparagraphs (C) and (D) and inserting the following:

‘(C) 30 percent of so much of the taxable income as exceeds $75,000.’, and

(3) by striking ‘$11,750’ and all that follows and inserting ‘$9,125.’

(b) Personal Service Corporations- Paragraph (2) of section 11(b) of such Code is amended by striking ‘35 percent’ and inserting ‘30 percent’.

(c) Conforming Amendments- Paragraphs (1) and (2) of section 1445(e) of such Code are each amended by striking ‘35 percent’ and inserting ‘30 percent’.

(d) Effective Date- The amendments made by this section shall apply to taxable years beginning after December 31, 2010, except that the amendments made by subsection (c) shall take effect on the date of the enactment of this Act.

SEC. 7. STUDIES.

(a) Workplace Employee Health Care Facilities- The Comptroller General of the United States shall conduct a study of the impact of workplace employee health care facilities on employee health and productivity. The results of such study shall be submitted to the Congress within 1 year after the date of the enactment of this Act.

(b) Retention of Students in Rural Communities- The Comptroller General of the United States shall conduct a study of the best practices for encouraging college graduates from rural areas to return to those areas after graduation. The results of such study shall be submitted to the Congress within 1 year after the date of the enactment of this Act.

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