[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[S. 1203 Introduced in Senate (IS)]
111th CONGRESS
1st Session
S. 1203
To amend the Internal Revenue Code of 1986 to extend the research
credit through 2010 and to increase and make permanent the alternative
simplified research credit, and for other purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
June 8, 2009
Mr. Baucus (for himself, Mr. Hatch, Mr. Kerry, Mrs. Lincoln, Mr. Wyden,
Mr. Schumer, Ms. Cantwell, Mr. Menendez, Mr. Ensign, and Mr. Cornyn)
introduced the following bill; which was read twice and referred to the
Committee on Finance
_______________________________________________________________________
A BILL
To amend the Internal Revenue Code of 1986 to extend the research
credit through 2010 and to increase and make permanent the alternative
simplified research credit, 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; AMENDMENT OF 1986 CODE.
(a) Short Title.--This Act may be cited as the ``Grow Research
Opportunities With Taxcredits' Help Act'' or ``GROWTH Act''.
(b) Amendment of 1986 Code.--Except as otherwise expressly
provided, whenever in this Act an amendment or repeal is expressed in
terms of an amendment to, or repeal of, a section or other provision,
the reference shall be considered to be made to a section or other
provision of the Internal Revenue Code of 1986.
SEC. 2. EXTENSION OF RESEARCH CREDIT; INCREASE IN ALTERNATIVE
SIMPLIFIED RESEARCH CREDIT.
(a) Extension of Credit.--
(1) In general.--Subparagraph (B) of section 41(h)(1) is
amended by striking ``December 31, 2009'' and inserting
``December 31, 2010''.
(2) Conforming amendment.--Subparagraph (D) of section
45C(b)(1) is amended by striking ``December 31, 2009'' and
inserting ``December 31, 2010''.
(3) Effective date.--The amendments made by this subsection
shall apply to amounts paid or incurred after December 31,
2009.
(b) Alternative Simplified Research Credit Increased.--
(1) Increased credit.--Paragraph (5) of section 41(c)
(relating to election of alternative simplified credit) is
amended--
(A) by striking ``14 percent (12 percent in the
case of taxable years ending before January 1, 2009)''
in subparagraph (A) and inserting ``20 percent'', and
(B) by striking ``6 percent'' in subparagraph
(B)(ii) and inserting ``10 percent''.
(2) Effective date.--The amendment made by this subsection
shall apply to taxable years beginning after the date of the
enactment of this Act.
SEC. 3. MODIFICATION OF RESEARCH CREDIT AFTER 2010.
(a) Simplified Credit for Qualified Research Expenses.--Subsection
(a) of section 41 is amended to read as follows:
``(a) General Rule.--
``(1) Credit determined.--For purposes of section 38, the
research credit determined under this section for the taxable
year shall be an amount equal to 20 percent of so much of the
qualified research expenses for the taxable year as exceeds 50
percent of the average qualified research expenses for the 3
taxable years preceding the taxable year for which the credit
is being determined.
``(2) Special rule in case of no qualified research
expenses in any of 3 preceding taxable years.--
``(A) Taxpayers to which paragraph applies.--The
credit under this section shall be determined under
this paragraph if the taxpayer has no qualified
research expenses in any one of the 3 taxable years
preceding the taxable year for which the credit is
being determined.
``(B) Credit rate.--The credit determined under
this paragraph shall be equal to 10 percent of the
qualified research expenses for the taxable year.''.
(b) Conforming Amendments.--
(1) Termination of base amount calculation.--Section 41 is
amended by striking subsection (c) and redesignating subsection
(d) as subsection (c).
(2) Termination of basic research payment calculation.--
Section 41 is amended by striking subsection (e) and
redesignating subsections (f) and (g) as subsections (d) and
(e), respectively.
(3) Special rules.--
(A) Paragraph (1)(A)(ii) of subsection (d) of
section 41, as so redesignated, is amended by striking
``shares of the qualified research expenses, basic
research payments, and amounts paid or incurred to
energy research consortiums,'' and inserting ``share of
the qualified research expenses''.
(B) Paragraph (1)(B)(ii) of section 41(d), as so
redesignated, is amended by striking ``shares of the
qualified research expenses, basic research payments,
and amounts paid or incurred to energy research
consortiums,'' and inserting ``share of the qualified
research expenses''.
(C) Paragraph (3) of section 41(d), as so
redesignated, is amended--
(i) by striking ``, and the gross receipts
of the taxpayer'' and all that follows in
subparagraph (A) and inserting a period,
(ii) by striking ``, and the gross receipts
of the taxpayer'' and all that follows in
subparagraph (B) and inserting a period, and
(iii) by striking subparagraph (C).
(D) Paragraph (4) of section 41(d), as so
redesignated, is amended by striking ``and gross
receipts''.
(E) Subsection (d) of section 41, as so
redesignated, is amended by striking paragraph (6).
(4) Permanent extension.--
(A) Section 41 is amended by striking subsection
(h).
(B) Paragraph (1) of section 45C(b) is amended by
striking subparagraph (D).
(5) Cross-references.--
(A) Paragraphs (2)(A) and (4) of section 41(b) are
each amended by striking ``subsection (f)(1)'' and
inserting ``subsection (d)(1)''.
(B) Paragraph (2) of section 45C(c) is amended by
striking ``base period research expenses'' and
inserting ``average qualified research expenses''.
(C) Paragraph (3) of section 45C(d) is amended by
striking ``section 41(f)'' and inserting ``section
41(d)''.
(D) Paragraph (2) of section 45G(e) is amended by
striking ``section 41(f)'' and inserting ``section
41(d)''.
(E) Subsection (g) of section 45O is amended by
striking ``section 41(f)'' and inserting ``section
41(d)''.
(F) Subparagraph (A) of section 54(l)(3) is amended
by striking ``section 41(g)'' and inserting ``section
41(e)''.
(G) Clause (i) of section 170(e)(4)(B) is amended
to read as follows:
``(i) the contribution is to a qualified
organization,''.
(H) Paragraph (4) of section 170(e) is amended by
adding at the end the following new subparagraph:
``(E) Qualified organization.--For purposes of this
paragraph, the term `qualified organization' means--
``(i) any educational organization which--
``(I) is an institution of higher
education (within the meaning of
section 3304(f)), and
``(II) is described in subsection
(b)(1)(A)(ii), or
``(ii) any organization not described in
clause (i) which--
``(I) is described in section
501(c)(3) and is exempt from tax under
section 501(a),
``(II) is organized and operated
primarily to conduct scientific
research, and
``(III) is not a private
foundation.''.
(I) Subsection (f) of section 197 is amended by
striking ``section 41(f)(1)'' each place it appears in
paragraphs (1)(C) and (9)(C)(i) and inserting ``section
41(d)(1)''.
(J) Section 280C is amended--
(i) by striking ``41(f)'' each place it
appears in subsection (b)(3) and inserting
``41(d)'',
(ii) by striking ``or basic research
expenses (as defined in section 41(e)(2))'' in
subsection (c)(1),
(iii) by striking ``section 41(a)(1)'' in
subsection (c)(2)(A) and inserting ``section
41(a)'', and
(iv) by striking ``or basic research
expenses'' in subsection (c)(2)(B).
(K) Subclause (IV)(c) of section 936(h)(5)(C)(i) is
amended by striking ``section 41(f)'' and inserting
``section 41(d)''.
(L) Subparagraph (D) of section 936(j)(5) is
amended by striking ``section 41(f)(3)'' and inserting
``section 41(d)(3)''.
(M) Clause (i) of section 965(c)(2)(C) is amended
by striking ``section 41(f)(3)'' and inserting
``section 41(d)(3)''.
(N) Clause (i) of section 1400N(l)(7)(B) is amended
by striking ``section 41(g)'' and inserting ``section
41(e)''.
(c) Technical Corrections.--Section 409 is amended--
(1) by inserting ``, as in effect before the enactment of
the Tax Reform Act of 1984)'' after ``section 41(c)(1)(B)'' in
subsection (b)(1)(A),
(2) by inserting ``, as in effect before the enactment of
the Tax Reform Act of 1984'' after ``relating to the employee
stock ownership credit'' in subsection (b)(4),
(3) by inserting ``(as in effect before the enactment of
the Tax Reform Act of 1984)'' after ``section 41(c)(1)(B)'' in
subsection (i)(1)(A),
(4) by inserting ``(as in effect before the enactment of
the Tax Reform Act of 1984)'' after ``section 41(c)(1)(B)'' in
subsection (m),
(5) by inserting ``(as so in effect)'' after ``section
48(n)(1)'' in subsection (m),
(6) by inserting ``(as in effect before the enactment of
the Tax Reform Act of 1984)'' after ``section 48(n)'' in
subsection (q)(1), and
(7) by inserting ``(as in effect before the enactment of
the Tax Reform Act of 1984)'' after ``section 41'' in
subsection (q)(3).
(d) Effective Date.--
(1) In general.--Except as provided in paragraph (2), the
amendments made by this section shall apply to taxable years
beginning after December 31, 2010.
(2) Technical corrections.--The amendments made by
subsection (c) shall take effect on the date of the enactment
of this Act.
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