I 111th CONGRESS 1st Session H. R. 2438 IN THE HOUSE OF REPRESENTATIVES May 14, 2009 Mr. Larson of Connecticut (for himself and Mr. Reichert) 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 provide a temporary bonus research credit for energy-related research.

1.

Bonus research credit for energy research

(a)

In general

Section 41 of the Internal Revenue Code of 1986 is amended by redesignating subsection (h) as subsection (i) and by inserting after subsection (g) the following new subsection: (h)

Temporary bonus for qualifying energy research expenses

In the case of any taxable year beginning in 2009 or 2010— (1)

In general

At the election of the taxpayer, the credit determined under subsection (a)(1) (with or without the application of subsection (c)(5)) shall, with respect to qualified energy research expenses, be increased by 20 percentage points. (2)

Qualified energy research expenses

For purposes of this subsection, the term qualified energy research expenses means so much of the taxpayer’s qualified research expenses as are related to the fields of fuel cells and battery technology, renewable energy, energy conservation technology, efficient transmission and distribution of electricity, and carbon capture and sequestration. (3)

Coordination with alternative simplified credit

For purposes of subsection (c)(5), the amount of qualified energy research expenses taken into account for the taxable year for which the credit is being determined shall not exceed— (A)in the case of subsection (c)(5)(A), 50 percent of the average qualified research expenses for the 3 taxable years preceding the taxable year for which the credit is begin determined, and (B)in the case of subsection (c)(5)(B)(ii), zero. (4)

Basic Research and Energy Research Consortium Payments

Any amount taken into account under paragraph (1) shall not be taken into account under paragraph (2) or (3) of subsection (a). . (b)

Conforming amendment

Subparagraph (B) of section 41(i)(1)(B) of such Code, as redesignated by subsection (a), is amended by inserting (in the case of the increase in the credit determined under subsection (h), December 31, 2010) after December 31, 2009. (c)

Effective date

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