110 HR 2138 IH: Investment in America Act of U.S. House of Representatives 2007-05-03 text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain.

I 110th CONGRESS 1st Session H. R. 2138 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.

1.

Short title

This Act may be cited as the Investment in America Act of 2007.

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.

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.

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.

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.