1.Short title; amendment of
1986 Code
(a)This Act may be cited
as the Grow Research Opportunities
With Taxcredits' Help Act
or GROWTH Act
.
(b)Except as otherwise
expressly provided, whenever in this Act an amendment or repeal is expressed in
terms of an amendment to, or repeal of, a section or other provision, the
reference shall be considered to be made to a section or other provision of the
Internal Revenue Code of 1986.
2.Extension of research
credit; increase in alternative simplified research credit
(a)
(1)Subparagraph (B) of
section 41(h)(1) is amended by striking December 31, 2009
and
inserting December 31, 2010
.
(2)Subparagraph (D) of
section 45C(b)(1) is amended by striking December 31, 2009
and
inserting December 31, 2010
.
(3)The amendments made by
this subsection shall apply to amounts paid or incurred after December 31,
2009.
(b)Alternative
simplified research credit increased
(1)Paragraph (5) of section 41(c) (relating to election of
alternative simplified credit) is amended—
(A)by striking
14 percent (12 percent in the case of taxable years ending before
January 1, 2009)
in subparagraph (A) and inserting 20
percent
, and
(B)by striking
6 percent
in subparagraph (B)(ii) and inserting 10
percent
.
(2)The amendment made by this subsection shall apply to taxable
years beginning after the date of the enactment of this Act.
3.Modification of
research credit after 2010
(a)Simplified
credit for qualified research expensesSubsection (a) of section
41 is amended to read as follows:
(a)
(1)For purposes of section 38, the research credit
determined under this section for the taxable year shall be an amount equal to
20 percent of so much of the qualified research expenses for the taxable year
as exceeds 50 percent of the average qualified research expenses for the 3
taxable years preceding the taxable year for which the credit is being
determined.
(2)Special rule in
case of no qualified research expenses in any of 3 preceding taxable
years
(A)Taxpayers to
which paragraph appliesThe credit under this section shall be
determined under this paragraph if the taxpayer has no qualified research
expenses in any one of the 3 taxable years preceding the taxable year for which
the credit is being determined.
(B)The credit determined under this paragraph shall be equal to
10 percent of the qualified research expenses for the taxable
year.
.
(b)
(1)Termination of
base amount calculationSection 41 is amended by striking
subsection (c) and redesignating subsection (d) as subsection (c).
(2)Termination of
basic research payment calculationSection 41 is amended by
striking subsection (e) and redesignating subsections (f) and (g) as
subsections (d) and (e), respectively.
(3)
(A)Paragraph
(1)(A)(ii) of subsection (d) of section 41, as so redesignated, is amended by
striking shares of the qualified research expenses, basic research
payments, and amounts paid or incurred to energy research consortiums,
and inserting share of the qualified research expenses
.
(B)Paragraph
(1)(B)(ii) of section 41(d), as so redesignated, is amended by striking
shares of the qualified research expenses, basic research payments, and
amounts paid or incurred to energy research consortiums,
and inserting
share of the qualified research expenses
.
(C)Paragraph (3) of
section 41(d), as so redesignated, is amended—
(i)by
striking , and the gross receipts of the taxpayer
and all that
follows in subparagraph (A) and inserting a period,
(ii)by
striking , and the gross receipts of the taxpayer
and all that
follows in subparagraph (B) and inserting a period, and
(iii)by striking
subparagraph (C).
(D)Paragraph (4) of
section 41(d), as so redesignated, is amended by striking and gross
receipts
.
(E)Subsection (d) of
section 41, as so redesignated, is amended by striking paragraph (6).
(4)
(A)Section 41 is
amended by striking subsection (h).
(B)Paragraph (1) of
section 45C(b) is amended by striking subparagraph (D).
(5)
(A)Paragraphs (2)(A)
and (4) of section 41(b) are each amended by striking subsection
(f)(1)
and inserting subsection (d)(1)
.
(B)Paragraph (2) of
section 45C(c) is amended by striking base period research
expenses
and inserting average qualified research
expenses
.
(C)Paragraph (3) of
section 45C(d) is amended by striking section 41(f)
and
inserting section 41(d)
.
(D)Paragraph (2) of
section 45G(e) is amended by striking section 41(f)
and
inserting section 41(d)
.
(E)Subsection (g) of
section 45O is amended by striking section 41(f)
and inserting
section 41(d)
.
(F)Subparagraph (A)
of section 54(l)(3) is amended by striking section 41(g)
and
inserting section 41(e)
.
(G)Clause (i) of
section 170(e)(4)(B) is amended to read as follows:
(i)the contribution
is to a qualified
organization,
.
(H)Paragraph (4) of
section 170(e) is amended by adding at the end the following new
subparagraph:
(E)For purposes of this paragraph, the term
qualified organization means—
(i)any educational
organization which—
(I)is an institution
of higher education (within the meaning of section 3304(f)), and
(II)is described in
subsection (b)(1)(A)(ii), or
(ii)any organization
not described in clause (i) which—
(I)is described in
section 501(c)(3) and is exempt from tax under section 501(a),
(II)is organized and
operated primarily to conduct scientific research, and
(III)is not a
private
foundation.
.
(I)Subsection (f) of
section 197 is amended by striking section 41(f)(1)
each place
it appears in paragraphs (1)(C) and (9)(C)(i) and inserting section
41(d)(1)
.
(J)Section 280C is
amended—
(i)by
striking 41(f)
each place it appears in subsection (b)(3) and
inserting 41(d)
,
(ii)by
striking or basic research expenses (as defined in section
41(e)(2))
in subsection (c)(1),
(iii)by striking
section 41(a)(1)
in subsection (c)(2)(A) and inserting
section 41(a)
, and
(iv)by
striking or basic research expenses
in subsection
(c)(2)(B).
(K)Subclause (IV)(c)
of section 936(h)(5)(C)(i) is amended by striking section 41(f)
and inserting section 41(d)
.
(L)Subparagraph (D)
of section 936(j)(5) is amended by striking section 41(f)(3)
and
inserting section 41(d)(3)
.
(M)Clause (i) of
section 965(c)(2)(C) is amended by striking section 41(f)(3)
and
inserting section 41(d)(3)
.
(N)Clause (i) of
section 1400N(l)(7)(B) is amended by striking section 41(g)
and
inserting section 41(e)
.
(c)Section 409 is amended—
(1)by inserting
, as in effect before the enactment of the Tax Reform Act of
1984)
after section 41(c)(1)(B)
in subsection
(b)(1)(A),
(2)by inserting
, as in effect before the enactment of the Tax Reform Act of
1984
after relating to the employee stock ownership
credit
in subsection (b)(4),
(3)by inserting
(as in effect before the enactment of the Tax Reform Act of
1984)
after section 41(c)(1)(B)
in subsection
(i)(1)(A),
(4)by inserting
(as in effect before the enactment of the Tax Reform Act of
1984)
after section 41(c)(1)(B)
in subsection
(m),
(5)by inserting
(as so in effect)
after section 48(n)(1)
in
subsection (m),
(6)by inserting
(as in effect before the enactment of the Tax Reform Act of
1984)
after section 48(n)
in subsection (q)(1),
and
(7)by inserting
(as in effect before the enactment of the Tax Reform Act of
1984)
after section 41
in subsection (q)(3).
(d)
(1)Except as provided in paragraph (2), the amendments made
by this section shall apply to taxable years beginning after December 31,
2010.
(2)The amendments made by subsection (c) shall take
effect on the date of the enactment of this Act.