[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1328 Introduced in House (IH)]







106th CONGRESS
  1st Session
                                H. R. 1328

To amend the Internal Revenue Code of 1986 to allow the research credit 
 for expenses attributable to certain collaborative research consortia.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             March 25, 1999

 Mr. Houghton (for himself, Mr. Levin, Ms. Slaughter, Mr. Clyburn, Mr. 
 Boehlert, Mr. Weller, Mr. Skeen, Mr. Inslee, Mr. Foley, Mrs. Thurman, 
Mr. Shows, Ms. Kilpatrick, Mr. Doolittle, Ms. Lofgren, Mr. Diaz-Balart, 
 Mr. Weldon of Pennsylvania, Mr. McDermott, Mr. Dooley of California, 
  Mr. Crane, Mr. Watkins, Mr. Camp, Mr. Metcalf, Mr. English, and Mr. 
   Kleczka) 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 allow the research credit 
 for expenses attributable to certain collaborative research consortia.

    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 ``Public Benefit Collaborative 
Research Tax Credit Act of 1999''.

SEC. 2. RESEARCH CREDIT FOR EXPENSES ATTRIBUTABLE TO CERTAIN 
              COLLABORATIVE RESEARCH CONSORTIA.

    (a) Credit for Expenses Attributable to Certain Collaborative 
Research Consortia.--Subsection (a) of section 41 of the Internal 
Revenue Code of 1986 (relating to credit for increasing research 
activities) is amended by striking ``and'' at the end of paragraph (1), 
by striking the period at the end of paragraph (2) and inserting ``, 
and'', and by adding at the end the following new paragraph:
            ``(3) 20 percent of the amounts paid or incurred during the 
        taxable year (including as contributions) to a qualified 
        research consortium.''
    (b) Qualified Research Consortium Defined.--Subsection (f) of 
section 41 of such Code is amended by adding at the end the following 
new paragraph:
            ``(6) Qualified research consortium.--The term `qualified 
        research consortium' means any organization which--
                    ``(A) is described in section 501(c)(3) and is 
                exempt from tax under section 501(a),
                    ``(B) is organized and operated primarily to 
                conduct scientific research,
                    ``(C) is not a private foundation,
                    ``(D) to which at least 15 unrelated persons paid 
                or incurred (including as contributions), during the 
                calendar year in which the taxable year of the 
                organization begins, amounts to such organization for 
                scientific research,
                    ``(E) to which no 3 unrelated persons paid or 
                incurred (including as contributions) during such 
                calendar year more than 50 percent of the total amounts 
                received by such organization during such calendar year 
                for scientific research, and
                    ``(F) to which no single person paid or incurred 
                (including as contributions) more than 25 percent of 
                such total amounts.
        All persons treated as a single employer under subsection (a) 
        or (b) of section 52 shall be treated as related persons for 
        purposes of subparagraphs (D) and (E), and as a single person 
        for purposes of subparagraph (F).''
    (c) Repeal of Contract Research Expense Limitation Applicable to 
Qualified Research Consortia.--Paragraph (3) of section 41(b) of such 
Code is amended by striking subparagraph (C).
    (d) Conforming Amendments.--
            (1) Paragraph (1) of section 280C(c) of such Code is 
        amended by striking ``qualified research expenses (as defined 
        in section 41(b)) or basic research expenses (as defined in 
        section 41(e)(2))'' and inserting ``qualified research expenses 
        (as defined in section 41(b)), basic research expenses (as 
        defined in section 41(e)(2)), or amounts paid or incurred 
        during the taxable year (including as contributions) to a 
        qualified research consortium (as defined in section 
        41(f)(6))''.
            (2) Subparagraph (B) of section 280C(c)(2) of such Code is 
        amended by striking ``qualified research expenses or basic 
        research expenses'' and inserting ``qualified research 
        expenses, basic research expenses, or amounts paid or incurred 
        during the taxable year (including as contributions) to a 
        qualified research consortium''.
    (e) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 1999.
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