[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2138 Introduced in House (IH)]







110th CONGRESS
  1st Session
                                H. R. 2138

 To amend the Internal Revenue Code of 1986 to permanently extend the 
 research credit and strengthen the alternative simplified credit for 
                      qualified research expenses.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                              May 3, 2007

   Mr. Levin (for himself, Mr. Camp of Michigan, Mr. McDermott, Mr. 
 Herger, Mr. Lewis of Georgia, Mr. Ramstad, Mr. Neal of Massachusetts, 
  Mr. Sam Johnson of Texas, Mr. Pomeroy, Mr. English of Pennsylvania, 
Mrs. Jones of Ohio, Mr. Weller of Illinois, Mr. Larson of Connecticut, 
 Mr. Hulshof, Mr. Emanuel, Mr. Lewis of Kentucky, Mr. Blumenauer, Mr. 
 Brady of Texas, Mr. Kind, Mr. Reynolds, Mr. Pascrell, Mr. Cantor, Ms. 
   Berkley, Mr. Nunes, Mr. Crowley, Mr. Tiberi, Mr. Van Hollen, Mr. 
    Porter, Ms. Schwartz, and Mr. Davis of Alabama) 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 strengthen the alternative simplified credit for 
                      qualified research expenses.

    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 ``Investment in America Act of 2007''.

SEC. 2. FINDINGS.

    The Congress finds as follows:
            (1) Research and development performed in the United States 
        results in quality jobs, better and safer products, increased 
        ownership of technology-based intellectual property, and higher 
        productivity in the United States.
            (2) The extent to which companies perform and increase 
        research and development activities in the United States is in 
        part dependent on Federal tax policy.
            (3) The Congress should make permanent a research and 
        development credit that provides a meaningful incentive at a 
        commensurate rate for all types of taxpayers.

SEC. 3. INCREASE IN RATE OF ALTERNATIVE SIMPLIFIED CREDIT.

    (a) In General.--Subparagraph (A) of section 41(c)(5) of the 
Internal Revenue Code of 1986 (relating to election of alternative 
simplified credit) is amended by striking ``12 percent'' and inserting 
``20 percent''.
    (b) Effective Date.--The amendment made by this section shall apply 
to amounts paid or incurred after December 31, 2007.

SEC. 4. 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 December 31, 2007.

SEC. 5. REPEAL THE ALTERNATIVE INCREMENTAL CREDIT.

    (a) In General.--Section 41(c) of the Internal Revenue Code of 
1986, as amended by section 3, is amended by striking paragraph (4) and 
by redesignating paragraphs (5), (6), and (7) as paragraphs (4), (5), 
and (6), respectively.
    (b) Conforming Amendment.--Section 41(c)(4)(C) of such Code, as 
amended by subsection (a), is amended by striking the last sentence.
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2007.
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