[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2963 Introduced in House (IH)]

111th CONGRESS
  1st Session
                                H. R. 2963

 To amend the Internal Revenue Code of 1986 to provide incentives for 
          improving small manufacturers' computer technology.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             June 19, 2009

   Mrs. Dahlkemper (for herself, Mr. Tim Murphy of Pennsylvania, Mr. 
   Carney, Mr. Welch, Mr. Tonko, Mr. Braley of Iowa, Mr. Honda, Mr. 
Bright, Ms. Eddie Bernice Johnson of Texas, Mr. Kissell, Mr. Childers, 
 Ms. Fudge, Mr. Kagen, Mr. Fattah, Mr. Boswell, Ms. Kaptur, Mr. Massa, 
    Mr. Altmire, Mr. Sires, Mr. Connolly of Virginia, Ms. Wasserman 
    Schultz, Mr. Moran of Virginia, and Mr. Dingell) 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 incentives for 
          improving small manufacturers' computer technology.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SMALL MANUFACTURERS' COMPUTER HARDWARE AND SOFTWARE TAX 
              CREDIT IN LIEU OF EXPENSING.

    (a) In General.--Subpart D of part IV of subchapter A of chapter 1 
of the Internal Revenue Code of 1986 is amended by adding at the end 
the following new section:

``SEC. 45R. SMALL MANUFACTURERS COMPUTER HARDWARE AND SOFTWARE TAX 
              CREDIT.

    ``(a) In General.--For purposes of section 38, the small 
manufacturers' computer hardware and software credit determined under 
this section for the taxable year is the lesser of--
            ``(1) 50 percent of the amount paid or incurred by the 
        taxpayer during the taxable year for qualified computer 
        hardware and software property; or
            ``(2) $35,000.00.
    ``(b) Qualified Computer Hardware and Software Property.--For 
purposes of this section, the term `qualified computer hardware and 
software property' means any computer hardware and software property 
for use in any small manufacturer located in the United States--
            ``(1) the original use of which commences with the 
        taxpayer;
            ``(2) which is property of a character subject to the 
        allowance for depreciation; and
            ``(3) which is placed in service by the taxpayer after the 
        date of the enactment of this section.
    ``(c) Computer Hardware.--For purposes of this section, the term 
`computer hardware' includes disk drives, integrated circuits, display 
screens, cables, modems, speakers, and printers.
    ``(d) Computer Software.--For purposes of this section, the term 
`computer software' means programs, programming languages, data that 
direct the operations of a computer system or network, enterprise 
resource planning software, manufacturing resource planning software, 
materials requirements planning software and software designed to 
enhance Internet capabilities.
    ``(e) Small Manufacturer.--For purposes of this section:
            ``(1) In general.--The term `small manufacturer' means--
                    ``(A) any unincorporated business, any partnership, 
                or for-profit corporation;
                    ``(B) with respect to a taxable year, any which 
                employed an average of 50 or fewer employees on 
                business days during the preceding calendar year. For 
                purposes of the preceding sentence, a preceding 
                calendar year may be taken into account only if the 
                small business was in existence throughout such year.
            ``(2) Small manufacturers not in existence in preceding 
        taxable year.--In the case of a small manufacturer which was 
        not in existence throughout the preceding calendar year, the 
        determination under paragraph (1) shall be based on the average 
        number of employees that it is reasonably expected such 
        employer or sole proprietor will employ on business days in the 
        current calendar year.
    ``(f) Calculation of Number of Employees.--For purposes of 
subsection (e), the number of employees of a subsidiary of a wholly 
owned corporation includes the employees of--
            ``(1) a parent corporation; and
            ``(2) any other subsidiary corporation of that parent 
        corporation.
    ``(g) Basis Adjustment.--For purposes of this subtitle, if a credit 
is determined under this section in connection with any expenditure for 
any property, the increase in the basis of such property which would 
(but for this subsection) result from such expenditure shall be reduced 
by the amount of the credit so determined.
    ``(h) Termination.--This section shall not apply with respect to 
any property placed in service after December 31, 2011.''.
    (b) Credit To Be Part of General Business Credit.--Section 38(b) of 
such Code is amended by striking ``plus'' at the end of paragraph (34), 
by striking the period at the end of paragraph (35) and inserting ``, 
plus'', and by adding at the end the following new paragraph:
            ``(36) the small manufacturers' computer hardware and 
        software credit determined under section 45R(a).''.
    (c) Denial of Double Benefit.--Section 280C of such Code is amended 
by adding at the end the following new subsection:
    ``(f) Small Manufacturers Computer Hardware and Software Credit.--
No deduction shall be allowed for that portion of the expenses 
otherwise allowable as a deduction for the taxable year which is equal 
to the amount of the credit determined for the taxable year under 
section 45R.''.
    (d) Allowance of Credit Against Alternative Minimum Tax.--
Subparagraph (B) of section 38(c)(4) of such Code is amended by 
striking ``and'' at the end of clause (vii), by striking the period at 
the end of clause (viii) and insert ``, and'', and by inserting after 
clause (viii) the following new clause:
                            ``(ix) the credit determined under section 
                        45R.''.
    (e) Transferability of Credit.--Nothing in any law or rule shall be 
construed to limit the transferability, through sale and repurchase 
agreements, of the credit allowed by reason of section 45R.
    (f) Effective Date.--The amendments made by this section shall 
apply to taxable years ending after December 31, 2008.
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