[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[S. 41 Introduced in Senate (IS)]







107th CONGRESS
  1st Session
                                 S. 41

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


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                            January 22, 2001

 Mr. Hatch (for himself, Mr. Baucus, Mr. Murkowski, Mr. Jeffords, Ms. 
 Snowe, Mr. Kyl, Mr. Rockefeller, Mr. Breaux, Mr. Conrad, Mr. Graham, 
Mr. Daschle, Mr. Kerry, Mr. Bingaman, Mr. Torricelli, and Mrs. Lincoln) 
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 increase the rates of 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. PERMANENT EXTENSION OF RESEARCH 
              CREDIT.

    (a) In General.--Section 41 of the Internal Revenue Code of 1986 
(relating to credit for increasing research activities) is amended by 
striking subsection (h).
    (b) Conforming Amendment.--Paragraph (1) of section 45C(b) of such 
Code is amended by striking subparagraph (D).
    (c) Effective Date.--The amendments made by this section shall 
apply to amounts paid or incurred after the date of the enactment of 
this Act.

SEC. 2. INCREASE IN RATES OF ALTERNATIVE INCREMENTAL CREDIT.

    (a) In General.--Subparagraph (A) of section 41(c)(4) of the 
Internal Revenue Code of 1986 (relating to election of alternative 
incremental credit) is amended--
            (1) by striking ``2.65 percent'' and inserting ``3 
        percent'',
            (2) by striking ``3.2 percent'' and inserting ``4 
        percent'', and
            (3) by striking ``3.75 percent'' and inserting ``5 
        percent''.
    (b) Effective Date.--The amendment made by this section shall apply 
to taxable years ending after the date of the enactment of this Act.
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