< Back to H.R. 132 (112th Congress, 2011–2013)

Text of the Create Jobs by Expanding the R&D Tax Credit Act of 2011

This bill was introduced on January 5, 2011, in a previous session of Congress, but was not enacted. The text of the bill below is as of Jan 5, 2011 (Introduced).

Source: GPO

I

112th CONGRESS

1st Session

H. R. 132

IN THE HOUSE OF REPRESENTATIVES

January 5, 2011

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

A BILL

To amend the Internal Revenue Code of 1986 to increase the credit for research expenses for 2011 and 2012 and to allow the credit to be assigned.

1.

Short title

This Act may be cited as the Create Jobs by Expanding the R&D Tax Credit Act of 2011.

2.

Increase in research expenses taken into account for the research credit

(a)

In general

Section 41 of the Internal Revenue Code of 1986 is amended by redesignating subsection (h) as subsection (i) and by inserting after subsection (g) the following new subsection:

(h)

Temporary Bonus for Qualifying Research Expenses

In the case of any taxable year beginning in 2011 or 2012—

(1)

subsection (a)(1) shall be applied by substituting 30 percent for 20 percent,

(2)

subsection (c)(5)(A) shall be applied by substituting 20 percent for 14 percent, and

(3)

subsection (c)(5)(B)(ii) shall be applied by substituting 12 percent for 6 percent.

.

(b)

Extension of credit

Subparagraph (B) of section 41(i)(1) of such Code, as redesignated by subsection (a), is amended by striking December 31, 2011 and inserting December 31, 2012.

(c)

Effective date

The amendments made by this section shall apply to taxable years beginning after December 31, 2010.

3.

Transferability of research credit

(a)

In general

Section 41 of the Internal Revenue Code of 1986, as amended by section 2, is amended by redesignating subsection (i) as subsection (j) and by inserting after subsection (h) the following new subsection:

(i)

Credit May Be Assigned

(1)

In general

If, for any taxable year beginning in 2011 or 2012, a qualified taxpayer elects the application of this subsection for such taxable year, the amount of credit determined under this section for such year which would (but for this subsection) be allowable to the qualified taxpayer shall be allowable to the person designated by the qualified taxpayer. Such amount shall be determined by applying this section separately from section 38 for such year. The person so designated shall be treated as the taxpayer with respect to this section (other than this subsection) for purposes of this title (other than this paragraph).

(2)

Treatment of amounts paid for assignment

If any amount is paid to the person who assigns the credit determined under this section, no portion of such amount shall be includible in such person’s gross income.

(3)

Qualified taxpayer

The term qualified taxpayer means, with respect to any taxable year, any small business concern (as defined in section 3 of the Small Business Act) if such concern employs an average of fewer than 500 employees on business days during such year.

.

(b)

Effective date

The amendments made by this section shall apply to taxable years beginning after December 31, 2010.