Amends the Internal Revenue Code to allow certain small manufacturers a tax credit for their computer hardware and software expenses. Limits such credit to the lesser of 50% of such expenses or $35,000. Terminates such credit after 2011.
[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2963 Introduced in House (IH)]
111th CONGRESS
1st Session
H. R. 2963
To amend the Internal Revenue Code of 1986 to provide incentives for
improving small manufacturers' computer technology.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
June 19, 2009
Mrs. Dahlkemper (for herself, Mr. Tim Murphy of Pennsylvania, Mr.
Carney, Mr. Welch, Mr. Tonko, Mr. Braley of Iowa, Mr. Honda, Mr.
Bright, Ms. Eddie Bernice Johnson of Texas, Mr. Kissell, Mr. Childers,
Ms. Fudge, Mr. Kagen, Mr. Fattah, Mr. Boswell, Ms. Kaptur, Mr. Massa,
Mr. Altmire, Mr. Sires, Mr. Connolly of Virginia, Ms. Wasserman
Schultz, Mr. Moran of Virginia, and Mr. Dingell) 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 provide incentives for
improving small manufacturers' computer technology.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SMALL MANUFACTURERS' COMPUTER HARDWARE AND SOFTWARE TAX
CREDIT IN LIEU OF EXPENSING.
(a) In General.--Subpart D of part IV of subchapter A of chapter 1
of the Internal Revenue Code of 1986 is amended by adding at the end
the following new section:
``SEC. 45R. SMALL MANUFACTURERS COMPUTER HARDWARE AND SOFTWARE TAX
CREDIT.
``(a) In General.--For purposes of section 38, the small
manufacturers' computer hardware and software credit determined under
this section for the taxable year is the lesser of--
``(1) 50 percent of the amount paid or incurred by the
taxpayer during the taxable year for qualified computer
hardware and software property; or
``(2) $35,000.00.
``(b) Qualified Computer Hardware and Software Property.--For
purposes of this section, the term `qualified computer hardware and
software property' means any computer hardware and software property
for use in any small manufacturer located in the United States--
``(1) the original use of which commences with the
taxpayer;
``(2) which is property of a character subject to the
allowance for depreciation; and
``(3) which is placed in service by the taxpayer after the
date of the enactment of this section.
``(c) Computer Hardware.--For purposes of this section, the term
`computer hardware' includes disk drives, integrated circuits, display
screens, cables, modems, speakers, and printers.
``(d) Computer Software.--For purposes of this section, the term
`computer software' means programs, programming languages, data that
direct the operations of a computer system or network, enterprise
resource planning software, manufacturing resource planning software,
materials requirements planning software and software designed to
enhance Internet capabilities.
``(e) Small Manufacturer.--For purposes of this section:
``(1) In general.--The term `small manufacturer' means--
``(A) any unincorporated business, any partnership,
or for-profit corporation;
``(B) with respect to a taxable year, any which
employed an average of 50 or fewer employees on
business days during the preceding calendar year. For
purposes of the preceding sentence, a preceding
calendar year may be taken into account only if the
small business was in existence throughout such year.
``(2) Small manufacturers not in existence in preceding
taxable year.--In the case of a small manufacturer which was
not in existence throughout the preceding calendar year, the
determination under paragraph (1) shall be based on the average
number of employees that it is reasonably expected such
employer or sole proprietor will employ on business days in the
current calendar year.
``(f) Calculation of Number of Employees.--For purposes of
subsection (e), the number of employees of a subsidiary of a wholly
owned corporation includes the employees of--
``(1) a parent corporation; and
``(2) any other subsidiary corporation of that parent
corporation.
``(g) Basis Adjustment.--For purposes of this subtitle, if a credit
is determined under this section in connection with any expenditure for
any property, the increase in the basis of such property which would
(but for this subsection) result from such expenditure shall be reduced
by the amount of the credit so determined.
``(h) Termination.--This section shall not apply with respect to
any property placed in service after December 31, 2011.''.
(b) Credit To Be Part of General Business Credit.--Section 38(b) of
such Code is amended by striking ``plus'' at the end of paragraph (34),
by striking the period at the end of paragraph (35) and inserting ``,
plus'', and by adding at the end the following new paragraph:
``(36) the small manufacturers' computer hardware and
software credit determined under section 45R(a).''.
(c) Denial of Double Benefit.--Section 280C of such Code is amended
by adding at the end the following new subsection:
``(f) Small Manufacturers Computer Hardware and Software Credit.--
No deduction shall be allowed for that portion of the expenses
otherwise allowable as a deduction for the taxable year which is equal
to the amount of the credit determined for the taxable year under
section 45R.''.
(d) Allowance of Credit Against Alternative Minimum Tax.--
Subparagraph (B) of section 38(c)(4) of such Code is amended by
striking ``and'' at the end of clause (vii), by striking the period at
the end of clause (viii) and insert ``, and'', and by inserting after
clause (viii) the following new clause:
``(ix) the credit determined under section
45R.''.
(e) Transferability of Credit.--Nothing in any law or rule shall be
construed to limit the transferability, through sale and repurchase
agreements, of the credit allowed by reason of section 45R.
(f) Effective Date.--The amendments made by this section shall
apply to taxable years ending after December 31, 2008.
<all>
Introduced in House
Introduced in House
Referred to the House Committee on Ways and Means.
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