I 

111TH CONGRESS 

1ST SESSION H. R. 422 

To amend the Internal Revenue Code of 1986 to extend the research credit 

through 2010 and to increase and make permanent the alternative simplified research credit. 

IN THE HOUSE OF REPRESENTATIVES 

JANUARY 9, 2009 

Mr. MEEK of Florida (for himself and Mr. BRADY of Texas) 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 extend 

the research credit through 2010 and to increase and 

make permanent the alternative simplified research credit. 

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

3 SECTION 1. EXTENSION OF RESEARCH CREDIT; ALTER4 NATIVE SIMPLIFIED RESEARCH CREDIT IN5 CREASED AND MADE PERMANENT. 

6 (a) EXTENSION OF CREDIT.— 

7 (1) IN GENERAL.—Subparagraph (B) of section 

8 41(h)(1) of the Internal Revenue Code of 1986 is 


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•HR 422 IH

1 amended by striking ‘‘December 31, 2009’’ and in2 serting ‘‘December 31, 2010’’. 

3 (2) CONFORMING AMENDMENT.—Subparagraph 

4 (D) of section 45C(b)(1) of such Code is amended 

5 by striking ‘‘December 31, 2009’’ and inserting 

6 ‘‘December 31, 2010’’. 

7 (3) EFFECTIVE DATE.—The amendments made 

8 by this subsection shall apply to amounts paid or in9 curred after December 31, 2009. 

10 (b) ALTERNATIVE SIMPLIFIED RESEARCH CREDIT

11 INCREASED AND MADE PERMANENT.— 

12 (1) INCREASED CREDIT.—Subparagraph (A) of 

13 section 41(c)(5) of such Code (relating to election of 

14 alternative simplified credit) is amended by striking 

15 ‘‘14 percent (12 percent in the case of taxable years 

16 ending before January 1, 2009)’’ and inserting ‘‘20 

17 percent’’. 

18 (2) CREDIT MADE PERMANENT.— 

19 (A) IN GENERAL.—Subsection (h) of sec20 tion 41 of such Code is amended by redesig21 nating the paragraph (2) relating to computa22 tion of taxable year in which credit terminates 

23 as paragraph (4) and by inserting before such 

24 paragraph the following new paragraph: 


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•HR 422 IH

1 ‘‘(3) TERMINATION NOT TO APPLY TO ALTER2 NATIVE SIMPLIFIED CREDIT.—Paragraph (1) shall 

3 not apply to the credit determined under subsection 

4 (c)(5).’’. 

5 (B) CONFORMING AMENDMENT.—Para6 graph (4) of section 41(h) of such Code, as re7 designated by subparagraph (A), is amended to 

8 read as follows: 

9 ‘‘(4) COMPUTATION FOR TAXABLE YEAR IN

10 WHICH CREDIT TERMINATES.—In the case of any 

11 taxable year with respect to which this section ap12 plies to a number of days which is less than the total 

13 number of days in such taxable year, the amount de14 termined under subsection (c)(1)(B) with respect to 

15 such taxable year shall be the amount which bears 

16 the same ratio to such amount (determined without 

17 regard to this paragraph) as the number of days in 

18 such taxable year to which this section applies bears 

19 to the total number of days in such taxable year.’’. 

20 (3) EFFECTIVE DATE.—The amendment made 

21 by this subsection shall apply to taxable years end22 ing after December 31, 2008. 

Æ 


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