HR 132
112th CONGRESS
1st Session
H. R. 132
To amend the Internal Revenue Code of 1986 to increase the credit
for research expenses for 2011 and 2012 and to allow the credit to be assigned.
IN THE HOUSE OF REPRESENTATIVES
January 5, 2011
Mr. HOLT (for himself and Mr. KIND) 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 increase the credit
for research expenses for 2011 and 2012 and to allow the credit to be assigned.
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 `Create Jobs by Expanding the R&D Tax Credit
Act of 2011'.
SEC. 2. INCREASE IN RESEARCH EXPENSES TAKEN INTO ACCOUNT FOR THE RESEARCH
CREDIT.
(a) In General- Section 41 of the Internal Revenue Code of 1986 is amended
by redesignating subsection (h) as subsection (i) and by inserting after subsection
(g) the following new subsection:
`(h) Temporary Bonus for Qualifying Research Expenses- In the case of any
taxable year beginning in 2011 or 2012--
`(1) subsection (a)(1) shall be applied by substituting `30 percent' for
`20 percent',
`(2) subsection (c)(5)(A) shall be applied by substituting `20 percent'
for `14 percent', and
`(3) subsection (c)(5)(B)(ii) shall be applied by substituting `12 percent'
for `6 percent'.'.
(b) Extension of Credit- Subparagraph (B) of section 41(i)(1) of such Code,
as redesignated by subsection (a), is amended by striking `December 31, 2011'
and inserting `December 31, 2012'.
(c) Effective Date- The amendments made by this section shall apply to taxable
years beginning after December 31, 2010.
SEC. 3. TRANSFERABILITY OF RESEARCH CREDIT.
(a) In General- Section 41 of the Internal Revenue Code of 1986, as amended
by section 2, is amended by redesignating subsection (i) as subsection (j)
and by inserting after subsection (h) the following new subsection:
`(i) Credit May Be Assigned-
`(1) IN GENERAL- If, for any taxable year beginning in 2011 or 2012, a qualified
taxpayer elects the application of this subsection for such taxable year,
the amount of credit determined under this section for such year which would
(but for this subsection) be allowable to the qualified taxpayer shall be
allowable to the person designated by the qualified taxpayer. Such amount
shall be determined by applying this section separately from section 38
for such year. The person so designated shall be treated as the taxpayer
with respect to this section (other than this subsection) for purposes of
this title (other than this paragraph).
`(2) TREATMENT OF AMOUNTS PAID FOR ASSIGNMENT- If any amount is paid to
the person who assigns the credit determined under this section, no portion
of such amount shall be includible in such person's gross income.
`(3) QUALIFIED TAXPAYER- The term `qualified taxpayer' means, with respect
to any taxable year, any small business concern (as defined in section 3
of the Small Business Act) if such concern employs an average of fewer than
500 employees on business days during such year.'.
(b) Effective Date- The amendments made by this section shall apply to taxable
years beginning after December 31, 2010.
END
