To amend the Internal Revenue Code of 1986 to make the credit for research activities permanent and to provide an increase in such credit for taxpayers whose gross receipts are predominantly from domestic production activities.

Amends the Internal Revenue Code to: (1) make permanent the tax credit for increasing research activities; and (2) increase the amount of such credit for taxpayers who earn more than 50% of their gross receipts from domestic production activities.

[Congressional Bills 111th Congress]
[From the U.S. Government Printing Office]
[H.R. 1545 Introduced in House (IH)]

111th CONGRESS
  1st Session
                                H. R. 1545

   To amend the Internal Revenue Code of 1986 to make the credit for 
research activities permanent and to provide an increase in such credit 
  for taxpayers whose gross receipts are predominantly from domestic 
                         production activities.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             March 17, 2009

   Mr. Boccieri (for himself and Mr. Lee of New York) 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 make the credit for 
research activities permanent and to provide an increase in such credit 
  for taxpayers whose gross receipts are predominantly from domestic 
                         production activities.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. CREDIT FOR RESEARCH ACTIVITIES MADE PERMANENT AND INCREASED 
              FOR TAXPAYERS WITH DOMESTIC PRODUCTION ACTIVITIES.

    (a) Research Credit Made Permanent.--
            (1) In general.--Section 41 of the Internal Revenue Code of 
        1986 is amended by striking subsection (h).
            (2) Conforming amendment.--Subsection (c) of section 41 of 
        such Code is amended by striking paragraph (4).
    (b) Increased Credit for Taxpayers With Domestic Production 
Activities.--Section 41 of such Code (as amended by subsection (a)) is 
amended by adding at the end the following new subsection:
    ``(h) Increased Credit for Taxpayers Whose Gross Receipts Are 
Predominantly From Domestic Production Activities.--
            ``(1) In general.--In the case of any taxpayer whose 
        domestic production activity percentage for any taxable year 
        exceeds 50 percent, this section shall be applied for such 
        taxable year by increasing each credit determination percentage 
        by the bonus number of percentage points determined in 
        accordance with the following table:


------------------------------------------------------------------------
                                                            The bonus
 ``In the case of a taxpayer whose domestic production      number of
                activity percentage is:                     percentage
                                                            points is:
------------------------------------------------------------------------
More than 50% but not more than 60%....................                2
More than 60% but not more than 70%....................                4
More than 70% but not more than 80%....................                6
More than 80% but not more than 90%....................                8
More than 90%..........................................              10.
------------------------------------------------------------------------

            ``(2) Domestic production activity percentage.--For 
        purposes of this subsection, the term `domestic production 
        activity percentage' means, with respect to any taxable year, 
        the ratio (expressed as a percentage) determined by dividing--
                    ``(A) the taxpayer's domestic production gross 
                receipts (as defined in paragraph (4) of section 
                199(c)) for such taxable year, by
                    ``(B) 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.
            ``(3) Credit determination percentage.--For purposes of 
        this subsection, the term `credit determination percentage' 
        means--
                    ``(A) each of the percentages appearing in 
                subsection (a), and
                    ``(B) the `14 percent' appearing in subsection 
                (c)(5)(A).''.
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2008.
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