I 111th CONGRESS 1st Session H. R. 1613 IN THE HOUSE OF REPRESENTATIVES March 19, 2009 Mr. Carney (for himself and Mr. Gerlach) 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 make the research credit permanent, increase expensing for small businesses, reduce corporate tax rates, and for other purposes.

1.

Short title

This Act may be cited as the Made in America Act of 2009.

2.

Research credit made permanent

(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, 2008 and to taxable years beginning after such date.

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 14 percent (12 percent in the case of taxable years ending before January 1, 2009) and inserting 20 percent. (b)

Effective date

The amendment made by this section shall apply to taxable years ending after December 31, 2008.

4.

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 redesignated 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, 2008.

5.

Increased section 179 expensing made permanent

(a)

Dollar limitation

Paragraph (1) of section 179(b) of the Internal Revenue Code of 1986 is amended by striking $25,000 ($125,000 in the case of taxable years beginning after 2006 and before 2011) and inserting $250,000. (b)

Phaseout threshold

Paragraph (2) of section 179(b) of such Code is amended by striking $200,000 ($500,000 in the case of taxable years beginning after 2006 and before 2011) and inserting $800,000. (c)

Conforming amendments

(1)Subparagraph (A) of section 179(b)(5) of such Code is amended— (A)by striking and before 2011, the $125,000 and $500,000 amounts and inserting , the $250,000 and $800,000 amounts, and (B)by striking calendar year 2006 and inserting calendar year 2007. (2)Section 179(b) of such Code, as amended by section 1202 of the American Recovery and Reinvestment Act of 2009, is amended by striking paragraph (7). (3)Paragraph (2) of section 179(c) of such Code is amended by striking and before 2011. (d)

Effective date

The amendments made by this section shall apply to taxable years beginning after December 31, 2008.

6.

Reduction in top corporate marginal rate

(a)

In general

Paragraph (1) of section 11(b) of the Internal Revenue Code of 1986 (relating to amount of tax) is amended— (1)by inserting and at the end of subparagraph (B), (2)by striking subparagraphs (C) and (D) and inserting the following: (C)30 percent of so much of the taxable income as exceeds $75,000. , and (3)by striking $11,750 and all that follows and inserting $9,125. (b)

Personal service corporations

Paragraph (2) of section 11(b) of such Code is amended by striking 35 percent and inserting 30 percent. (c)

Conforming amendments

Paragraphs (1) and (2) of section 1445(e) of such Code are each amended by striking 35 percent and inserting 30 percent. (d)

Effective date

The amendments made by this section shall apply to taxable years beginning after December 31, 2008, except that the amendments made by subsection (c) shall take effect on the date of the enactment of this Act.

7.

Studies

(a)

Workplace employee health care facilities

The Comptroller General of the United States shall conduct a study of the impact of workplace employee health care facilities on employee health and productivity. The results of such study shall be submitted to the Congress within 1 year after the date of the enactment of this Act. (b)

Retention of students in rural communities

The Comptroller General of the United States shall conduct a study of the best practices for encouraging college graduates from rural areas to return to those areas after graduation. The results of such study shall be submitted to the Congress within 1 year after the date of the enactment of this Act.