1.
(a)This Act may be cited
as the Job Creation Through Innovation
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.Use of only
simplified research credit after 2011; expansion and permanent
extension
(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)Section 45C(b)(1)
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,
2011.
(2)The amendments made by subsection (c) shall take
effect on the date of the enactment of this Act.
3.Enhanced research
credit for domestic manufacturers
(a)Section 41, as
amended by section 3, is amended by redesignating subsection (f) as subsection
(g) and by inserting after subsection (e) the following new subsection:
(f)Enhanced credit
for domestic manufacturers
(1)In the case of a qualified domestic manufacturer, this
section shall be applied by increasing the 20 percent amount in subsection
(a)(1) by the bonus amount.
(2)Qualified
domestic manufacturerFor purposes of this subsection—
(A)The term qualified domestic manufacturer
means a taxpayer who has domestic production gross receipts which are more than
50 percent of total production gross receipts.
(B)Domestic
production gross receiptsThe term domestic production
gross receipts has the meaning given to such term under section
199(c)(4).
(C)Total
production gross receiptsThe term total production gross
receipts means the gross receipts of the taxpayer which are described in
section 199(c)(4), determined—
(i)without regard to
whether property described in subparagraph (A)(i)(I) or (A)(i)(III) thereof was
manufactured, produced, grown, or extracted in the United States,
(ii)by substituting
any property described in section 168(f)(3)
for any
qualified film
in subparagraph (A)(i)(II) thereof, and
(iii)without regard
to whether any construction described in subparagraph (A)(ii) thereof or
services described in subparagraph (A)(iii) thereof were performed in the
United States.
(3)For purposes of paragraph (1), the bonus amount shall be
determined as follows:
If the percentage of total
production gross receipts which are domestic production gross receipts
is:The
bonus amount is:
More than 50 percent and not more
than 60 percent2 percentage points
More than 60 percent and not more
than 70 percent4 percentage points
More than 70 percent and not more
than 80 percent6 percentage points
More than 80 percent and not more
than 90 percent8 percentage points
More than 90 percent10 percentage
points.
.
(b)The amendment made by this section shall apply to
expenditures paid or incurred in taxable years beginning after December 31,
2011.
4.Research credit
made refundable for small businesses
(a)Subsection (a) of section 41 of the Internal Revenue Code
of 1986, as amended by section 3, is amended by adding at the end the following
new paragraph:
(3)Portion of
credit refundable
(A)For purposes of subsections (b) and (c) of section 6401,
the amount of the credit determined under this section which is attributable to
a qualified small business shall be treated as a credit allowed under subpart C
of part IV of subchapter A for the taxable year (and not under any other
subpart). For purposes of section 6425, any amount treated as so allowed shall
be treated as a payment of estimated income tax for the taxable year.
(B)For purposes of this paragraph, the term qualified
small business means, with respect to any taxable year, any person if
the annual average number of employees employed by such person during such
taxable year is 500 or
fewer.
.
(b)Section 1324(b)(2) of title 31, United States Code, is
amended by inserting 41(a)(3),
after 36A,
.
(c)The amendments made by this section shall apply to taxable
years beginning after December 31, 2011.
5.Extension of grants
for specified energy property in lieu of tax credits
(a)Subsection (a) of section 1603 of division B of the
American Recovery and Reinvestment Act of 2009 is amended—
(1)in paragraph (1),
by striking or 2011
and inserting 2011, or 2012
,
and
(2)in paragraph
(2)—
(A)by striking
after 2011
and inserting after 2012
, and
(B)by striking
or 2011
and inserting 2011, or 2012
.
(b)Subsection (j) of section 1603 of division B of such
Act is amended by striking 2012
and inserting
2013
.
6.Extension of the
advanced energy project credit
(a)Subsection (d) of
section 48C is amended by adding at the end the following new paragraph:
(6)Additional 2011
allocations
(A)Not later than 180 days after the date of the enactment
of this paragraph, the Secretary, in consultation with the Secretary of Energy,
shall establish a program to consider and award certifications for qualified
investments eligible for credits under this section to qualifying advanced
energy project sponsors with respect to applications received on or after the
date of the enactment of this paragraph.
(B)The
total amount of credits that may be allocated under the program described in
subparagraph (A) shall not exceed the 2011 allocation amount reduced by so much
of the 2011 allocation amount as is taken into account as an increase in the
limitation described in paragraph (1)(B).
(C)Application of
certain rulesRules similar to the rules of paragraphs (2), (3),
(4), and (5) shall apply for purposes of the program described in subparagraph
(A), except that—
(i)Applicants
shall have 2 years from the date that the Secretary establishes such program to
submit applications.
(ii)For purposes of paragraph (3)(B)(i), the term
domestic job creation (both direct and indirect) means the
creation of direct jobs in the United States producing the property
manufactured at the manufacturing facility described under subsection
(c)(1)(A)(i), and the creation of indirect jobs in the manufacturing supply
chain for such property in the United States.
(iii)Review and
redistributionThe Secretary shall conduct a separate review and
redistribution under paragraph (5) with respect to such program not later than
4 years after the date of the enactment of this paragraph.
(D)For purposes of this subsection, the term 2011
allocation amount
means $5,000,000,000.
(E)In lieu of any qualifying advanced energy project credit
which would otherwise be determined under this section with respect to an
allocation to a taxpayer under this paragraph, the Secretary shall, upon the
election of the taxpayer, make a grant to the taxpayer in the amount of such
credit as so determined. Rules similar to the rules of section 50 shall apply
with respect to any grant made under this
subparagraph.
.
(b)Portion of 2011
allocation allocated toward pending applications under original
programSubparagraph (B) of section 48C(d)(1) is amended by
inserting (increased by so much of the 2011 allocation amount (not in
excess of $1,500,000,000) as the Secretary determines necessary to make
allocations to qualified investments with respect to which qualifying
applications were submitted before the date of the enactment of paragraph
(6))
after $2,300,000,000
.
(c)Paragraph (2) of
section 1324(b) of title 31, United States Code, is amended by inserting
48C(d)(6)(E),
after 36C,
.