Igniting American Research Act - Amends the Internal Revenue Code, with respect to the tax credit for increasing research expenditures, to: (1) extend such credit through 2014; (2) increase the rate of the alternative simplified research tax credit to 20% and make such credit permanent; (3) allow a 20% research tax credit for payments to a tax-exempt biotechnology research consortium for biotechnology research; and (4) modify the requirements relating to the eligibility of an energy research consortium for the tax credit to require at least 3 unrelated persons (currently, 5 unrelated persons) to make payments to such a consortium for energy research.
[Congressional Bills 113th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3757 Introduced in House (IH)]
113th CONGRESS
1st Session
H. R. 3757
To amend the Internal Revenue Code of 1986 to extend the research
credit one year, to increase and make permanent the alternative
simplified research credit, and to provide a 20 percent credit for
payments to biotechnology research consortiums for biotechnology
research.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
December 12, 2013
Mr. Peters of California (for himself, Mr. Honda, Ms. DelBene, Mr.
Murphy of Florida, and Ms. Lofgren) 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 one year, to increase and make permanent the alternative
simplified research credit, and to provide a 20 percent credit for
payments to biotechnology research consortiums for biotechnology
research.
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 ``Igniting American Research Act''.
SEC. 2. 1-YEAR EXTENSION OF RESEARCH CREDIT; ALTERNATIVE SIMPLIFIED
RESEARCH CREDIT INCREASED AND MADE PERMANENT.
(a) 1-Year 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, 2013'' and inserting ``December 31, 2014''.
(2) Conforming amendment.--Subparagraph (D) of section
45C(b)(1) of such Code is amended by striking ``December 31,
2013'' and inserting ``December 31, 2014''.
(3) Effective date.--The amendments made by this subsection
shall apply to amounts paid or incurred after December 31,
2013.
(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 amendments made by this subsection
shall apply to taxable years ending after December 31, 2013.
SEC. 3. BIOTECHNOLOGY RESEARCH.
(a) 20 Percent Credit for Payments to Biotechnology Research
Consortium for Biotechnology Research.--
(1) In general.--Section 41(a)(3) of the Internal Revenue
Code of 1986 is amended by inserting ``or a biotechnology
research consortium for biotechnology research'' before the
period at the end.
(2) Limitation.--Section 41(a) of the Internal Revenue Code
of 1986 is amended by adding at the end the following flush
sentence: ``The amounts taken into account for purposes of
paragraph (3) for a taxable year may not exceed the greater of
20 percent of the amounts paid or incurred by the taxpayer
during the taxable year (including as contributions) to an
energy research consortium for energy research or 20 percent of
the amounts paid or incurred by the taxpayer during the taxable
year (including as contributions) to a biotechnology research
consortium for biotechnology research.''.
(b) Biotechnology Contract Research Expenses.--Section
41(b)(3)(D)(i) of the Internal Revenue Code of 1986 is amended by
striking ``energy research'' and inserting ``energy or biotechnology
research''.
(c) Special Rules.--Subparagraphs (A)(ii) and (B)(ii) of section
41(f)(1) of the Internal Revenue Code of 1986 are both amended by
striking ``consortiums,'' and inserting ``consortiums and to
biotechnology research consortiums,''.
(d) Biotechnology Research Consortium Defined.--Section 41(f) of
the Internal Revenue Code of 1986 is amended by adding at the end the
following new paragraph:
``(7) Biotechnology research consortium.--
``(A) In general.--The term `biotechnology research
consortium' means any organization--
``(i) which is--
``(I) described in section
501(c)(3) and is exempt from tax under
section 501(a) and is organized and
operated primarily to conduct
biotechnology research, or
``(II) organized and operated
primarily to conduct biotechnology
research in the public interest (within
the meaning of section 501(c)(3)),
``(ii) which is not a private foundation,
``(iii) to which at least 3 unrelated
persons paid or incurred during the calendar
year in which the taxable year of the
organization begins amounts (including as
contributions) to such organization for
biotechnology research, and
``(iv) to which no single person paid or
incurred (including as contributions) during
such calendar year an amount equal to more than
50 percent of the total amounts received by
such organization during such calendar year for
biotechnology research.
``(B) Applicable rules.--For purposes of
subparagraph (A), rules similar to the rules of
subparagraphs (B), (C) (applied by substituting
`biotechnology' for `research'), and (D) of paragraph
(6) shall apply.
``(C) Biotechnology research.--The term
`biotechnology research' does not include--
``(i) any research which is not qualified
research, and
``(ii) any research which is energy
research.''.
(e) Energy Research Consortium.--Section 41(f)(A)(iii) of the
Internal Revenue Code of 1986 is amended by striking ``5 unrelated
persons'' and inserting ``3 unrelated persons''.
(f) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2013.
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Introduced in House
Introduced in House
Referred to the House Committee on Ways and Means.
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