A bill to amend the Internal Revenue Code of 1954 to provide a credit against tax for certain research and experimental expenditures

Amends the Internal Revenue Code to allow a nonrefundable income tax credit equal to 25 percent of the research and experimental expenditures incurred by a taxpayer in connection with his trade or business.

Limits the amount of expenditures eligible for the credit to those research and experimental expenditures which exceed 102 percent, but which do not exceed 150 percent, of the expenditures for the preceding taxable year. Allows a three year carryback and a seven year carryover of credit amounts which exceed the limitations on the credit for any taxable year.