[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[S. 1803 Introduced in Senate (IS)]







106th CONGRESS
  1st Session
                                S. 1803

 To amend the Internal Revenue Code of 1986 to extend permanently and 
                    expand the research tax credit.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                            October 27, 1999

   Mr. Robb (for himself, Mr. Baucus, Mr. Bingaman, Mrs. Boxer, Mrs. 
 Feinstein, Mr. Kennedy, Mr. Kerry, Mr. Leahy, Mrs. Murray, Mr. Reid, 
 Mr. Sarbanes, and Mr. Lieberman) 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 extend permanently and 
                    expand the research tax credit.

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

SECTION 1. PERMANENT EXTENSION AND MODIFICATION OF RESEARCH CREDIT.

    (a) Permanent Extension.--
            (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).
            (3) Effective date.--The amendments made by this subsection 
        shall apply to amounts paid or incurred after June 30, 1999.
    (b) Increase in Percentages Under Alternative Incremental Credit.--
            (1) In general.--Subparagraph (A) of section 41(c)(4) of 
        the Internal Revenue Code of 1986 is amended--
                    (A) by striking ``1.65 percent'' and inserting 
                ``2.65 percent'',
                    (B) by striking ``2.2 percent'' and inserting ``3.2 
                percent'', and
                    (C) by striking ``2.75 percent'' and inserting 
                ``3.75 percent''.
            (2) Effective date.--The amendments made by this subsection 
        shall apply to taxable years beginning after June 30, 1999.
    (c) Extension of Research Credit to Research in Puerto Rico and the 
Possessions of the United States.--
            (1) In general.--Section 41(d)(4)(F) of the Internal 
        Revenue Code of 1986 (relating to foreign research) is amended 
        by inserting ``, the Commonwealth of Puerto Rico, or any 
        possession of the United States'' after ``United States''.
            (2) Effective date.--The amendment made by this section 
        shall apply to taxable years beginning after December 31, 1999.
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