[Congressional Bills 103th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2049 Introduced in House (IH)]

103d CONGRESS
  1st Session
                                H. R. 2049

To amend the Internal Revenue Code of 1986 to permit taxpayers to elect 
   a nonincremental credit for 5 percent of their aerospace-related 
   research expenditures in lieu of the incremental research credit.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                              May 10, 1993

Mrs. Johnson of Connecticut (for herself and Mrs. Kennelly) 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 permit taxpayers to elect 
   a nonincremental credit for 5 percent of their aerospace-related 
   research expenditures in lieu of the incremental research credit.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled, That (a) section 41 of 
the Internal Revenue Code of 1986 (relating to credit for increasing 
research activities) is amended by redesignating subsections (g) and 
(h) as subsections (h) and (i), respectively, and by inserting after 
subsection (f) the following new subsection:
    ``(g) Elective Nonincremental Credit for Aerospace Businesses.--If 
the taxpayer elects the benefits of this subsection for a taxable 
year--
            ``(1) the research credit determined under subsection (a) 
        for such taxable year shall include a credit equal to 5 percent 
        of the qualified research expenses of the taxpayer which are 
        attributable to any aerospace-related business (as defined by 
        the Secretary) of the taxpayer, and
            ``(2) in determining the amount of the credit determined 
        under subsection (a)(1) for such taxable year, the qualified 
        research expenses which are so attributable shall not be taken 
        into account.
``An election under this subsection may only apply to either or both of 
the taxpayer's first 2 taxable years beginning after the date of the 
enactment of this subsection.''
    (b) The amendment made by subsection (a) shall apply to taxable 
years beginning after the date of the enactment of this Act.

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