I 

110TH CONGRESS 

1ST SESSION H. R. 2138 

To amend the Internal Revenue Code of 1986 to permanently extend the 

research credit and strengthen the alternative simplified credit for qualified research expenses. 

IN THE HOUSE OF REPRESENTATIVES 

MAY 3, 2007 

Mr. LEVIN (for himself, Mr. CAMP of Michigan, Mr. MCDERMOTT, Mr. 

HERGER, Mr. LEWIS of Georgia, Mr. RAMSTAD, Mr. NEAL of Massachusetts, Mr. SAM JOHNSON of Texas, Mr. POMEROY, Mr. ENGLISH of Pennsylvania, Mrs. JONES of Ohio, Mr. WELLER of Illinois, Mr. LARSON of 

Connecticut, Mr. HULSHOF, Mr. EMANUEL, Mr. LEWIS of Kentucky, Mr. 

BLUMENAUER, Mr. BRADY of Texas, Mr. KIND, Mr. REYNOLDS, Mr. 

PASCRELL, Mr. CANTOR, Ms. BERKLEY, Mr. NUNES, Mr. CROWLEY, Mr. 

TIBERI, Mr. VAN HOLLEN, Mr. PORTER, Ms. SCHWARTZ, and Mr. DAVIS

of Alabama) 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 permanently 

extend the research credit and strengthen the alternative 

simplified credit for qualified research expenses. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Investment in America 

5 Act of 2007’’. 


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1 SEC. 2. FINDINGS. 

2 The Congress finds as follows: 

3 (1) Research and development performed in the 

4 United States results in quality jobs, better and 

5 safer products, increased ownership of technology6 based intellectual property, and higher productivity 

7 in the United States. 

8 (2) The extent to which companies perform and 

9 increase research and development activities in the 

10 United States is in part dependent on Federal tax 

11 policy. 

12 (3) The Congress should make permanent a re13 search and development credit that provides a mean14 ingful incentive at a commensurate rate for all types 

15 of taxpayers. 

16 SEC. 3. INCREASE IN RATE OF ALTERNATIVE SIMPLIFIED 

17 CREDIT. 

18 (a) IN GENERAL.—Subparagraph (A) of section 

19 41(c)(5) of the Internal Revenue Code of 1986 (relating 

20 to election of alternative simplified credit) is amended by 

21 striking ‘‘12 percent’’ and inserting ‘‘20 percent’’. 

22 (b) EFFECTIVE DATE.—The amendment made by 

23 this section shall apply to amounts paid or incurred after 

24 December 31, 2007. 


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1 SEC. 4. PERMANENT EXTENSION OF RESEARCH CREDIT. 

2 (a) IN GENERAL.—Section 41 of the Internal Rev3 enue Code of 1986 (relating to credit for increasing re4 search activities) is amended by striking subsection (h). 

5 (b) CONFORMING AMENDMENT.—Paragraph (1) of 

6 section 45C(b) of such Code is amended by striking sub7 paragraph (D). 

8 (c) EFFECTIVE DATE.—The amendments made by 

9 this section shall apply to amounts paid or incurred after 

10 December 31, 2007. 

11 SEC. 5. REPEAL THE ALTERNATIVE INCREMENTAL CREDIT. 

12 (a) IN GENERAL.—Section 41(c) of the Internal Rev13 enue Code of 1986, as amended by section 3, is amended 

14 by striking paragraph (4) and by redesignating para15 graphs (5), (6), and (7) as paragraphs (4), (5), and (6), 

16 respectively. 

17 (b) CONFORMING AMENDMENT.—Section 

18 41(c)(4)(C) of such Code, as amended by subsection (a), 

19 is amended by striking the last sentence. 

20 (c) EFFECTIVE DATE.—The amendments made by 

21 this section shall apply to taxable years beginning after 

22 December 31, 2007. 

Æ 


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