H. R. 6329
IN THE HOUSE OF REPRESENTATIVES
August 2, 2012
Ms. Hochul 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, to increase the research credit for businesses manufacturing in the United States, and to make the research credit refundable for small businesses.
This Act may be cited as the
Build It in America Act of
Credit for research activities made permanent; increased credit for businesses manufacturing in the united states; credit made refundable for small businesses
Research credit made permanent
Section 41 of the Internal Revenue Code of 1986 is amended by striking subsection (h).
Subsection (c) of section 41 of such Code is amended by striking paragraph (4).
Paragraph (1) of section 45C(b) of such Code is amended by striking subparagraph (D).
The amendments made by this subsection shall apply to amounts paid or incurred after December 31, 2011.
Enhanced research credit for domestic manufacturers
Section 41 of such Code, as amended by subsection (a), is amended by inserting after subsection (g) the following new subsection:
Enhanced credit for domestic manufacturers
In the case of a qualified domestic manufacturer, this section shall be applied by increasing the 20 percent amount in subsection (a)(1) by the bonus amount.
Qualified domestic manufacturer
For purposes of this subsection—
The term qualified domestic manufacturer means any taxpayer who has a domestic production percentage of more than 50 percent.
Domestic production percentage
The term domestic production percentage means, with respect to any taxable year, the percentage determined by dividing—
the taxpayer’s domestic production gross receipts (as defined in paragraph (4) of section 199(c)) for such taxable year, by
the amount which would be determined under such paragraph with respect to the taxpayer for such taxable year if the activities described in such paragraph were taken into account without regard to whether they occurred in the United States.
For purposes of paragraph (1), the bonus amount shall be determined as follows:
|If the domestic production||The bonus|
|percentage is:||amount is:|
|More than 50 percent but not more than 60 percent||2 percentage points|
|More than 60 percent but not more than 70 percent||4 percentage points|
|More than 70 percent but not more than 80 percent||6 percentage points|
|More than 80 percent but not more than 90 percent||8 percentage points|
|More than 90 percent||10 percentage points|
The amendment made by this section shall apply to expenditures paid or incurred in taxable years beginning after December 31, 2011.
Credit made refundable for small businesses
Section 41 of such Code is amended by adding at the end the following new subsection:
Credit refundable for small businesses
In the case of a small business (as defined in subsection (b)(3)(D)(iii)), 100 percent of the credit determined under this section shall be treated as a credit allowable under subpart C (and not allowable under this subpart).
Businesses with more than 500 employees but less than 800 employees
If any person
(not otherwise a small business (as so defined)) would be treated as such a
small business if
less than 800 were substituted for
or fewer in subsection (b)(3)(D)(iii), such person shall be treated as
a small business for purposes of this subsection but the applicable percentage
determined in accordance with the following table shall be substituted for
100 percent in paragraph (1).
|If the annual number of||The applicable|
|employees is:||percentage is:|
|More than 500 but not more than 600||80|
|More than 600 but not more than 700||60|
|More than 700 but not more than 800||40|
The amendment made by this subsection shall apply to taxable years beginning after December 31, 2011.