To amend the Internal Revenue Code of 1986 to provide a simplified research tax credit for small businesses.

Summary: Small Business Research and Experimentation Simplification Act of 2009 - Amends the Internal Revenue Code to allow small business employers with an average of 500 or fewer employees in a calendar year a partially refundable tax credit for 20% of their research expenditures. Terminates such credit after 2015.

Requires the Comptroller General to report to Congress by June 30, 2015, on an analysis of the usefulness and effectiveness of any recommended changes in the research tax credit allowed by this Act.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Small Business Research and 
Experimentation Simplification Act of 2009''.

SEC. 2. RESEARCH TAX CREDIT.

    (a) In General.--Subpart B of part IV of subchapter A of chapter 1 
of the Internal Revenue Code of 1986 is amended by adding at the end 
the following new section:

``SEC. 30E. SIMPLIFIED SMALL BUSINESS RESEARCH CREDIT.

    ``(a) In General.--In the case of an eligible small business, there 
shall be allowed as a credit against the tax imposed by this chapter 
for the taxable year an amount equal to 20 percent of the qualified 
research expenses of the taxpayer for the taxable year.
    ``(b) Qualified Research Expenditures.--For purposes of this 
section, the term `qualified research expenses' has the meaning given 
such term by section 41(b), except that in lieu of applying paragraph 
(2)(C) thereof (defining supplies) the term `supplies' means any 
tangible property other than land.
    ``(c) Eligible Small Business.--For purposes of this section--
            ``(1) In general.--The term `eligible small business' means 
        with respect to any taxable year beginning in a calendar year, 
        any employer if such employer employed an average of 500 or 
        fewer employees on business days during the preceding calendar 
        year. For purposes of the preceding sentence, a preceding 
        calendar year may be taken into account only if the employer 
        was in existence throughout such year.
            ``(2) Employers not in existence in preceding year.--In the 
        case of an employer which was not in existence throughout the 
        preceding calendar year, the determination under paragraph (1) 
        shall be based on the average number of employees that it is 
        reasonably expected such employer will employ on business days 
        in the current calendar year.
    ``(d) Limitation Based on Amount of Tax.--In the case of a taxable 
year to which section 26(a)(2) does not apply, the credit allowed under 
subsection (a) for any taxable year shall not exceed the excess of--
            ``(1) the sum of the regular tax liability (as defined in 
        section 26(b)) plus the tax imposed by section 55, over
            ``(2) the sum of the credits allowable under this subpart 
        (other than this section and sections 23, 25D, 30, 30B, and 
        30D) and section 27 for the taxable year.
    ``(e) Portion of Credit Refundable.--
            ``(1) In general.--The aggregate credits allowed to a 
        taxpayer under subpart C shall be increased by an amount equal 
        to 25 percent of the excess (if any) of--
                    ``(A) the sum of the regular tax liability (as 
                defined in section 26(b)) plus the tax imposed by 
                section 55, over
                    ``(B) the amount of the credit allowable under 
                subsection (a) (determined without regard to this 
                subsection and section 26(a) or subsection (d), as the 
                case may be).
        The amount of the credit allowed under this subsection shall 
        not be treated as a credit allowed under this subpart and shall 
        reduce the amount of credit otherwise allowable under 
        subsection (a) without regard to section 26(a)(2) or subsection 
        (d), as the case may be.
            ``(2) Application of subsection.--This subsection shall 
        apply only with respect to the first 5 taxable years of an 
        eligible small business (including the taxable years of any 
        predecessor in interest).
    ``(f) Special Rules.--For purposes of this section--
            ``(1) Controlled groups.--All persons treated as a single 
        employer under subsection (a) or (b) of section 52 or 
        subsection (m) or (o) of section 414 shall be treated as a 
        single person.
            ``(2) Denial of double benefit.--
                    ``(A) Coordination with other provisions.--Any 
                amount taken into account under subsection (a) shall 
                not be taken into account in determining any deduction 
                or other credit allowed under this chapter.
                    ``(B) Reduction in basis.--For purposes of this 
                subtitle, the basis of any property for which a credit 
                is allowable under subsection (a) shall be reduced by 
                the amount of such credit so allowed and attributable 
                to such property.
            ``(3) Special rule for pass-thru of credit.--In the case of 
        an individual who--
                    ``(A) owns an interest in an unincorporated trade 
                or business,
                    ``(B) is a partner in a partnership,
                    ``(C) is a beneficiary of an estate or trust, or
                    ``(D) is a shareholder in an S corporation,
        the amount determined under subsection (a) for any taxable year 
        shall not exceed an amount (separately computed with respect to 
        such person's interest in such trade or business or entity) 
        equal to the amount of tax attributable to that portion of a 
        person's taxable income which is allocable or apportionable to 
        the person's interest in such trade or business or entity.
    ``(g) Termination.--Subsection (a) shall not apply to taxable years 
beginning after December 31, 2015.''.
    (b) Conforming Amendments.--
            (1) Section 24(b)(3)(B) of such Code is amended by striking 
        ``and 30D'' and inserting ``30D, and 30E''.
            (2) Section 25(e)(1)(C)(ii) of such Code is amended by 
        inserting ``30E,'' after ``30D,''.
            (3) Section 25A(i)(5)(B) of such Code is amended by 
        striking ``and 30D'' and inserting ``30D, and 30E''.
            (4) Section 25B(g)(2) of such Code is amended by striking 
        ``and 30D'' and inserting ``30D, and 30E''.
            (5) Section 26(a)(1) of such Code is amended by striking 
        ``and 30D'' and inserting ``30D, and 30E''.
            (6) Section 904(i) of such Code is amended by striking 
        ``and 30D'' and inserting ``30D, and 30E''.
            (7) Section 1400C(d)(2) of such Code is amended by 
        inserting ``, and 30E'' after ``30D''.
    (c) Clerical Amendment.--The table of sections for subpart B of 
part IV of subchapter A of chapter 1 of such Code is amended by adding 
at the end the following new item:

``Sec. 30E. Simplified small business research credit.''.
    (d) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2009.

SEC. 3. GAO STUDY ON SIMPLIFIED SMALL BUSINESS RESEARCH CREDIT.

    Not later than June 30, 2015, the Comptroller General, in 
consultation with the Secretary of the Treasury, shall submit to the 
Committee on Small Business of the House of Representatives and the 
Committee on Small Business and Entrepreneurship of the Senate a report 
detailing the Comptroller General's analysis of the usefulness and 
effectiveness of, and any recommended changes with respect to, the 
simplified small business research credit determined under section 30E 
of the Internal Revenue Code of 1986.