[Congressional Record Volume 163, Number 195 (Thursday, November 30, 2017)]
[Senate]
[Page S7590]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

  SA 1693. Mr. CARPER submitted an amendment intended to be proposed by 
him to the bill H.R. 1, to provide for reconciliation pursuant to 
titles II and V of the concurrent resolution on the budget for fiscal 
year 2018; which was ordered to lie on the table; as follows:

       At the end of subpart B of part IX of subtitle C of title 
     I, insert the following:

     SEC. 13824. SPLIT 100 PERCENT RESEARCH CREDIT FOR CONTRACT 
                   RESEARCH EXPENSES.

       (a) In General.--Subparagraph (A) of section 41(b)(3) is 
     amended to read as follows:
       ``(A) In general.--
       ``(i) Taxpayers paying for contracted research.--The term 
     `contract research expenses' means 65 percent of any amount 
     paid or incurred by the taxpayer to any person (other than an 
     employee of the taxpayer) for qualified research.
       ``(ii) Taxpayers performing contracted research.--In the 
     case of a taxpayer (other than an entity described in 
     subparagraph (C) or (D) or subsection (e)(6)) who receives 
     amounts from any person (other than an employer of the 
     taxpayer) for qualified research on behalf of such person, 
     the term `contract research expenses' means so much of the 
     qualified research expenses paid or incurred by the taxpayer 
     as does not exceed 35 percent of the amounts so received from 
     such person.
       ``(iii) Special rules.--For purposes of clause (ii)--

       ``(I) Trade or business.--The qualified research expenses 
     of the taxpayer shall be determined as if the trade or 
     business of the taxpayer were the conduct of qualified 
     research on behalf of other persons.
       ``(II) Research not treated as funded research.--
     Subparagraph (H) of subsection (d)(4) shall not apply.
       ``(III) Qualified research.--The qualified research 
     expenses of a taxpayer shall be determined as if the 
     conditions of subparagraph (B) of subsection (d)(1) are 
     satisfied if the business component described in subparagraph 
     (B)(ii) thereof is a business component of either of the 
     taxpayers described in clauses (i) and (ii).
       ``(IV) Limitation.--The qualified research expenses of a 
     taxpayer shall not include any expenses that would not be 
     eligible as in-house research expenses for purposes of 
     paragraph (2).

       ``(iv) Denial of double benefit.--The amount of any in-
     house research expenses taken into account under this section 
     with respect to a taxpayer described in clause (ii) shall be 
     reduced by the amount of the contract research expenses taken 
     into account under such clause with respect to such taxpayer 
     for the taxable year.''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to taxable years beginning after December 31, 
     2017.
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