[Congressional Bills 105th Congress]
[From the U.S. Government Publishing Office]
[S. 405 Introduced in Senate (IS)]







105th CONGRESS
  1st Session
                                 S. 405

 To amend the Internal Revenue Code of 1986 to permanently extend the 
     research credit and to allow greater opportunity to elect the 
                    alternative incremental credit.


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                   IN THE SENATE OF THE UNITED STATES

                             March 5, 1997

   Mr. Hatch (for himself, Mr. Baucus, Mr. D'Amato, Mr. Abraham, Mr. 
Bingaman, Mrs. Boxer, Mr. Dorgan, Mrs. Moseley-Braun, Mrs. Murray, Mr. 
DeWine, Mr. Conrad, Mr. Rockefeller, and Mrs. Feinstein) introduced the 
 following bill; which was read twice and referred to the Committee on 
                                Finance

_______________________________________________________________________

                                 A BILL


 
 To amend the Internal Revenue Code of 1986 to permanently extend the 
     research credit and to allow greater opportunity to elect 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. MODIFICATIONS TO 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) Opportunity To Elect Alternative Incremental Credit.--
Subparagraph (B) of section 41(c)(4) of the Internal Revenue Code of 
1986 (relating to election) is amended to read as follows:
                    ``(B) Election.--An election under this paragraph 
                shall apply to the taxable year for which made and all 
                succeeding taxable years unless revoked with the 
                consent of the Secretary.''
    (c) Effective Dates.--
            (1) Extension.--The amendments made by subsection (a) shall 
        apply to amounts paid or incurred after May 31, 1997.
            (2) Election.--The amendment made by subsection (b) shall 
        apply to taxable years beginning after June 30, 1996.
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