H. R. 942
IN THE HOUSE OF REPRESENTATIVES
March 8, 2011
Mr. Brady of Texas (for himself, Mr. Larson of Connecticut, Mr. Paulsen, Ms. Eshoo, Ms. Matsui, and Mr. McCaul) introduced the following bill; which was referred to the Committee on Ways and Means
To amend the Internal Revenue Code of 1986 to extend the research credit through 2012 and to increase and make permanent the alternative simplified research credit.
This Act may be cited as the
American Research and Competitiveness
Act of 2011.
Extension of research credit; alternative simplified research credit increased and made permanent
Extension of credit
Subparagraph (B) of
section 41(h)(1) of the Internal Revenue Code of 1986 is amended by striking
December 31, 2011 and inserting
Subparagraph (D) of
section 45C(b)(1) of such Code is amended by striking
2011 and inserting
December 31, 2012.
The amendments made by this subsection shall apply to amounts paid or incurred after December 31, 2011.
Alternative simplified research credit increased and made permanent
Subparagraph (A) of section 41(c)(5) of such Code
(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
Credit made permanent
Subsection (h) of section 41 of such Code is amended by redesignating the paragraph (2) relating to computation of taxable year in which credit terminates as paragraph (4) and by inserting before such paragraph the following new paragraph:
Termination not to apply to alternative simplified credit
Paragraph (1) shall not apply to the credit determined under subsection (c)(5).
Paragraph (4) of section 41(h) of such Code, as redesignated by subparagraph (A), is amended to read as follows:
Computation for taxable year in which credit terminates
In the case of any taxable year with respect to which this section applies to a number of days which is less than the total number of days in such taxable year, the amount determined under subsection (c)(1)(B) with respect to such taxable year shall be the amount which bears the same ratio to such amount (determined without regard to this paragraph) as the number of days in such taxable year to which this section applies bears to the total number of days in such taxable year.
The amendments made by this subsection shall apply to taxable years ending after December 31, 2010.