[Congressional Record Volume 142, Number 97 (Thursday, June 27, 1996)]
[Senate]
[Page S7187]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. HATCH:
  S. 1914. A bill to amend the Internal Revenue Code of 1986 to clarify 
the treatment of research related to an existing business component; to 
the Committee on Finance.


                       clarification legislation

  Mr. HATCH. Mr. President, I ask unanimous consent that the text of 
the bill be printed in the Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                S. 1914

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

     SECTION 1. CLARIFICATION OF RESEARCH ON EXISTING BUSINESS 
                   COMPONENTS ELIGIBLE FOR RESEARCH CREDIT.

       (a) In General.--Subparagraph (C) of section 41(d)(4) of 
     the Internal Revenue Code of 1986 (relating to activities for 
     which credit is not allowed) is amended by adding at the end 
     the following new sentence: ``The preceding sentence shall 
     not apply to research related to the development of a 
     business component of a taxpayer which is an original 
     alternative to achieve the equivalent result of an existing 
     business component of a competitor of the taxpayer.''
       (b) Effective Date.--The amendment made by this section 
     shall apply to taxable years beginning after the date of the 
     enactment of this Act.
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