I 

112TH CONGRESS 

1ST SESSION H. R. 1329 

To amend the Internal Revenue Code of 1986 to make the credit for research 

activities permanent and to provide an increase in such credit for taxpayers whose gross receipts are predominantly from domestic production 

activities. 

IN THE HOUSE OF REPRESENTATIVES 

APRIL 1, 2011 

Mr. LANCE 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 make 

the credit for research activities permanent and to provide an increase in such credit for taxpayers whose gross 

receipts are predominantly from domestic production activities. 

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

3 SECTION 1. CREDIT FOR RESEARCH ACTIVITIES MADE 

4 PERMANENT AND INCREASED FOR TAX5 PAYERS WITH DOMESTIC PRODUCTION AC6 TIVITIES. 

7 (a) RESEARCH CREDIT MADE PERMANENT.— 


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•HR 1329 IH

1 (1) IN GENERAL.—Section 41 of the Internal 

2 Revenue Code of 1986 is amended by striking sub3 section (h). 

4 (2) CONFORMING AMENDMENT.—Subsection (c) 

5 of section 41 of such Code is amended by striking 

6 paragraph (4). 

7 (b) INCREASED CREDIT FOR TAXPAYERS WITH DO8 MESTIC PRODUCTION ACTIVITIES.—Section 41 of such 

9 Code (as amended by subsection (a)) is amended by add10 ing at the end the following new subsection: 

11 ‘‘(h) INCREASED CREDIT FOR TAXPAYERS WHOSE

12 GROSS RECEIPTS ARE PREDOMINANTLY FROM DOMESTIC

13 PRODUCTION ACTIVITIES.— 

14 ‘‘(1) IN GENERAL.—In the case of any taxpayer 

15 whose domestic production activity percentage for 

16 any taxable year exceeds 50 percent, this section 

17 shall be applied for such taxable year by increasing 

18 each credit determination percentage by the bonus 

19 number of percentage points determined in accord20 ance with the following table: 

‘‘In the case of a taxpayer whose 

domestic production activity percentage is: 

The bonus 

number of 

percentage 

points is: 

More than 50% but not more than 60% .................................. 2

More than 60% but not more than 70% .................................. 4

More than 70% but not more than 80% .................................. 6

More than 80% but not more than 90% .................................. 8

More than 90% ......................................................................... 10. 


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•HR 1329 IH

1 ‘‘(2) DOMESTIC PRODUCTION ACTIVITY PER2 CENTAGE.—For purposes of this subsection, the 

3 term ‘domestic production activity percentage’ 

4 means, with respect to any taxable year, the ratio 

5 (expressed as a percentage) determined by divid6 ing— 

7 ‘‘(A) the taxpayer’s domestic production 

8 gross receipts (as defined in paragraph (4) of 

9 section 199(c)) for such taxable year, by 

10 ‘‘(B) the amount which would be deter11 mined under such paragraph with respect to the 

12 taxpayer for such taxable year if the activities 

13 described in such paragraph were taken into ac14 count without regard to whether they occurred 

15 in the United States. 

16 ‘‘(3) CREDIT DETERMINATION PERCENTAGE.— 

17 For purposes of this subsection, the term ‘credit de18 termination percentage’ means— 

19 ‘‘(A) each of the percentages appearing in 

20 subsection (a), and 

21 ‘‘(B) the ‘14 percent’ appearing in sub22 section (c)(5)(A).’’. 


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•HR 1329 IH

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

2 this section shall apply to taxable years beginning after 

3 December 31, 2010. 

Æ 


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