[Congressional Bills 113th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3640 Introduced in House (IH)]

113th CONGRESS
  1st Session
                                H. R. 3640

    To amend the Internal Revenue Code of 1986 to increase and make 
                     permanent the research credit.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            December 3, 2013

  Ms. Brownley of California 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 increase and make 
                     permanent the research credit.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Innovation, Research, and 
Manufacturing Act''.

SEC. 2. RESEARCH CREDIT INCREASED AND MADE PERMANENT.

    (a) Credit Amount Increased by 50 Percent.--Paragraphs (1), (2), 
and (3) of section 41(a) of the Internal Revenue Code of 1986 are each 
amended by striking ``20 percent'' and inserting ``30 percent''.
    (b) Credit Made Permanent.--
            (1) In general.--Section 41 of such Code is amended by 
        striking subsection (h).
            (2) Conforming amendments.--
                    (A) Subsection (c) of section 41 of such Code is 
                amended by striking paragraph (4).
                    (B) Paragraph (1) of section 45C(b) of such Code is 
                amended by striking subparagraph (D).
    (c) Credit Allowed Against Payroll Taxes for Small Employers.--
Section 41 of such Code, as amended by subsection (b), is amended by 
adding at the end the following new subsection:
    ``(h) Credit Allowed Against Payroll Taxes for Small Employers.--
            ``(1) In general.--In the case of an eligible small 
        employer, so much of the credit determined under subsection (a) 
        for the taxable year (determined without regard to this 
        subsection) as does not exceed the payroll taxes paid by such 
        employer for periods during such taxable year shall be treated 
        for purposes of this title as a credit allowed under subpart C.
            ``(2) Coordination with research credit.--The amount 
        determined under subsection (a) for any taxable year shall be 
        reduced by the amount treated under paragraph (1) as a credit 
        allowed under subpart C.
            ``(3) Eligible small employer.--For purposes of this 
        subsection, the term `eligible small employer' means a small 
        business concern within the meaning of section 3 of the Small 
        Business Act.
            ``(4) Payroll taxes.--For purposes of this subsection, the 
        term `payroll taxes' means--
                    ``(A) any tax imposed under section 3111 or 
                3221(a),
                    ``(B) so much of any tax imposed under section 
                3211(a) as relates to the rates of tax under 
                subsections (a) and (b) of section 3111, and
                    ``(C) 50 percent of any tax imposed under section 
                1401.''.
    (d) Effective Dates.--
            (1) In general.--Except as provided in paragraph (2), the 
        amendments made by this section shall apply to taxable years 
        beginning after December 31, 2013.
            (2) Extension of credit.--The amendments made by subsection 
        (b) shall apply to amounts paid or incurred after December 31, 
        2013.
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