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.

Amends the Internal Revenue Code to extend through 2010 the tax credit for increasing research activities and increase and make permanent the alternative simplified research tax credit.

[Congressional Bills 111th Congress]
[From the U.S. Government Printing Office]
[H.R. 422 Introduced in House (IH)]

111th CONGRESS
  1st Session
                                H. R. 422

   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.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            January 9, 2009

Mr. Meek of Florida (for himself and Mr. Brady of Texas) 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 extend the research 
credit through 2010 and to increase and make permanent the alternative 
                      simplified research credit.

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

SECTION 1. EXTENSION OF RESEARCH CREDIT; ALTERNATIVE SIMPLIFIED 
              RESEARCH CREDIT INCREASED AND MADE PERMANENT.

    (a) Extension of Credit.--
            (1) In general.--Subparagraph (B) of section 41(h)(1) of 
        the Internal Revenue Code of 1986 is amended by striking 
        ``December 31, 2009'' and inserting ``December 31, 2010''.
            (2) Conforming amendment.--Subparagraph (D) of section 
        45C(b)(1) of such Code 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 and Made 
Permanent.--
            (1) Increased credit.--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 ``20 percent''.
            (2) Credit made permanent.--
                    (A) In general.--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:
            ``(3) Termination not to apply to alternative simplified 
        credit.--Paragraph (1) shall not apply to the credit determined 
        under subsection (c)(5).''.
                    (B) Conforming amendment.--Paragraph (4) of section 
                41(h) of such Code, as redesignated by subparagraph 
                (A), is amended to read as follows:
            ``(4) 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.''.
            (3) Effective date.--The amendment made by this subsection 
        shall apply to taxable years ending after December 31, 2008.
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