21st Century Investment Act of 2013 - Amends the Internal Revenue Code to: (1) make permanent the tax credit for increasing research activities; (2) allow an increased 25% tax credit rate for research expenses incurred in the United States; and (3) increase to 15%, through 2022, the tax deduction for income attributable to domestic manufacturing production activities for which substantially all of the research and development occurred in the United States.
[Congressional Bills 113th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3537 Introduced in House (IH)]
113th CONGRESS
1st Session
H. R. 3537
To amend the Internal Revenue Code of 1986 to make permanent the credit
for increasing research activities, to increase such credit for amounts
paid or incurred for qualified research occurring in the United States,
and to increase the domestic production activities deduction for the
manufacture of property substantially all of the research and
development of which occurred in the United States.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
November 19, 2013
Ms. Edwards (for herself, Ms. Norton, Mr. Cummings, Ms. Tsongas, Mr.
Cicilline, Mr. Welch, and Mr. Holt) 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 permanent the credit
for increasing research activities, to increase such credit for amounts
paid or incurred for qualified research occurring in the United States,
and to increase the domestic production activities deduction for the
manufacture of property substantially all of the research and
development of which occurred in the United States.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``21st Century Investment Act of
2013''.
SEC. 2. RESEARCH CREDIT MADE PERMANENT.
(a) In General.--Section 41 of the Internal Revenue Code of 1986 is
amended by striking subsection (h).
(b) Conforming Amendments.--
(1) Section 41(c) of such Code is amended by striking
paragraph (4).
(2) Paragraph (1) of section 45C(b) of such Code is amended
by striking subparagraph (D).
(c) Effective Date.--The amendments made by this subsection shall
apply to amounts paid or incurred after December 31, 2013.
SEC. 3. INCREASE IN RESEARCH CREDIT FOR CONTRACTED RESEARCH WITH UNITED
STATES BUSINESSES.
(a) In General.--Section 41 of the Internal Revenue Code of 1986,
as amended by section 2 of this Act, is amended by inserting after
subsection (g) the following new subsection:
``(h) Special Rule for Contracted Research With United States
Manufacturing Business.--
``(1) In general.--If the taxpayer elects the application
of this subsection, subsection (a)(1) shall be applied by
substituting `25 percent' for `20 percent' with respect to
qualified United States research expenses.
``(2) Qualified united states research expenses.--For
purposes of this subsection, the term `qualified United States
research expenses' means any amount paid or incurred by the
taxpayer to any person (other than an employee of the taxpayer)
for qualified research, substantially all of which occurs in
the United States.
``(3) Separate application of section.--In the case of any
election of the application of this subsection, this section
shall be applied separately with respect qualified United
States research expenses.''.
(b) Effective Date.--The amendments made by this section shall
apply to amounts paid or incurred for taxable years beginning after the
date of the enactment of this Act.
SEC. 4. INCREASE IN DOMESTIC PRODUCTION ACTIVITIES DEDUCTION FOR
MANUFACTURED PROPERTY RESEARCHED AND DEVELOPED IN UNITED
STATES.
(a) In General.--Subsection (d) of section 199 of the Internal
Revenue Code of 1986 is amended by redesignating paragraph (10) as
paragraph (11) and by inserting after paragraph (9) the following new
paragraph:
``(10) Special rule for certain manufacturing.--
``(A) In general.--In the case qualified production
activities income attributable to the manufacture or
production of qualifying production property
substantially all of the research and development of
which occurred in the United States, subsection (a)
shall be applied by substituting `15 percent' for `9
percent'.
``(B) Special rule when taxable income used to
determine deduction.--In the case of any taxable year
for which the taxpayer's qualified production
activities income exceeds the taxpayer's taxable income
(determined without regard to this section), the amount
of taxable income to which the 15 percent amount in
subparagraph (A) applies under subsection (a)(1) shall
be an amount equal to the amount which bears the same
ratio to such taxable income (as so determined) as--
``(i) the amount of qualified production
activities income of the taxpayer for the
taxable year which is attributable to the
manufacture or production of qualifying
production property substantially all of the
research and development with respect to which
occurred in the United States, bears to
``(ii) all qualified production activities
income of the taxpayer for the taxable year.
``(C) Termination.--This paragraph shall not apply
to taxable years beginning after December 31, 2022.''.
(b) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after the date of the enactment of
this Act.
<all>
Introduced in House
Introduced in House
Referred to the House Committee on Ways and Means.
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