[Congressional Bills 105th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2819 Introduced in House (IH)]







105th CONGRESS
  1st Session
                                H. R. 2819

 To amend the Internal Revenue Code of 1986 to permanently extend the 
   research credit and to modify the alternative incremental credit.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            November 5, 1997

Mrs. Johnson of Connecticut (for herself and Mr. Matsui) 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 permanently extend the 
   research credit and to modify the alternative incremental credit.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. EXTENSION OF RESEARCH CREDIT.

    (a) Credit Made Permanent.--
            (1) In general.--Section 41 of the Internal Revenue Code of 
        1986 (relating to credit for increasing research activities) is 
        amended by striking subsection (h).
            (2) Conforming amendment.--Paragraph (1) of section 45C(b) 
        of such Code is amended by striking subparagraph (D).
    (b) Increase in Alternative Incremental Credit Rates.--Subparagraph 
(A) of section 41(c)(4) of such Code is amended--
            (1) by striking ``1.65 percent'' in clause (i) and 
        inserting ``2.65 percent'',
            (2) by striking ``2.2 percent'' in clause (ii) and 
        inserting ``3.2 percent'', and
            (3) by striking ``2.75 percent'' in clause (iii) and 
        inserting ``3.75 percent''.
    (c) Effective Date.--The amendments made by this section shall 
apply to amounts paid or incurred after June 30, 1998.
                                 <all>