I 

113TH CONGRESS 

1ST SESSION H. R. 3757 

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

one year, to increase and make permanent the alternative simplified 

research credit, and to provide a 20 percent credit for payments to 

biotechnology research consortiums for biotechnology research. 

IN THE HOUSE OF REPRESENTATIVES 

DECEMBER 12, 2013 

Mr. PETERS of California (for himself, Mr. HONDA, Ms. DELBENE, Mr. MURPHY of Florida, and Ms. LOFGREN) 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 one year, to increase and make permanent the alternative simplified research credit, and 

to provide a 20 percent credit for payments to biotechnology research consortiums for biotechnology research. 

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 ‘‘Igniting American Re5 search Act’’. 


sroberts on DSK5SPTVN1PROD with BILLS
2 

•HR 3757 IH

1 SEC. 2. 1-YEAR EXTENSION OF RESEARCH CREDIT; ALTER2 NATIVE SIMPLIFIED RESEARCH CREDIT IN3 CREASED AND MADE PERMANENT. 

4 (a) 1-YEAR EXTENSION OF CREDIT.— 

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

6 41(h)(1) of the Internal Revenue Code of 1986 is 

7 amended by striking ‘‘December 31, 2013’’ and in8 serting ‘‘December 31, 2014’’. 

9 (2) CONFORMING AMENDMENT.—Subparagraph 

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

11 by striking ‘‘December 31, 2013’’ and inserting 

12 ‘‘December 31, 2014’’. 

13 (3) EFFECTIVE DATE.—The amendments made 

14 by this subsection shall apply to amounts paid or in15 curred after December 31, 2013. 

16 (b) ALTERNATIVE SIMPLIFIED RESEARCH CREDIT

17 INCREASED AND MADE PERMANENT.— 

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

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

20 alternative simplified credit) is amended by striking 

21 ‘‘14 percent (12 percent in the case of taxable years 

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

23 percent’’. 

24 (2) CREDIT MADE PERMANENT.— 

25 (A) IN GENERAL.—Subsection (h) of sec26 tion 41 of such Code is amended by redesigVerDate Mar 15 2010 19:50 Dec 21, 2013 Jkt 039200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H3757.IH H3757

sroberts on DSK5SPTVN1PROD with BILLS
3 

•HR 3757 IH

1 nating the paragraph (2) relating to computa2 tion of taxable year in which credit terminates 

3 as paragraph (4) and by inserting before such 

4 paragraph the following new paragraph: 

5 ‘‘(3) TERMINATION NOT TO APPLY TO ALTER6 NATIVE SIMPLIFIED CREDIT.—Paragraph (1) shall 

7 not apply to the credit determined under subsection 

8 (c)(5).’’. 

9 (B) CONFORMING AMENDMENT.—Para10 graph (4) of section 41(h) of such Code, as re11 designated by subparagraph (A), is amended to 

12 read as follows: 

13 ‘‘(4) COMPUTATION FOR TAXABLE YEAR IN

14 WHICH CREDIT TERMINATES.—In the case of any 

15 taxable year with respect to which this section ap16 plies to a number of days which is less than the total 

17 number of days in such taxable year, the amount de18 termined under subsection (c)(1)(B) with respect to 

19 such taxable year shall be the amount which bears 

20 the same ratio to such amount (determined without 

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

22 such taxable year to which this section applies bears 

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


sroberts on DSK5SPTVN1PROD with BILLS
4 

•HR 3757 IH

1 (3) EFFECTIVE DATE.—The amendments made 

2 by this subsection shall apply to taxable years end3 ing after December 31, 2013. 

4 SEC. 3. BIOTECHNOLOGY RESEARCH. 

5 (a) 20 PERCENT CREDIT FOR PAYMENTS TO BIO6 TECHNOLOGY RESEARCH CONSORTIUM FOR BIO7 TECHNOLOGY RESEARCH.— 

8 (1) IN GENERAL.—Section 41(a)(3) of the In9 ternal Revenue Code of 1986 is amended by insert10 ing ‘‘or a biotechnology research consortium for bio11 technology research’’ before the period at the end. 

12 (2) LIMITATION.—Section 41(a) of the Internal 

13 Revenue Code of 1986 is amended by adding at the 

14 end the following flush sentence: ‘‘The amounts 

15 taken into account for purposes of paragraph (3) for 

16 a taxable year may not exceed the greater of 20 per17 cent of the amounts paid or incurred by the tax18 payer during the taxable year (including as contribu19 tions) to an energy research consortium for energy 

20 research or 20 percent of the amounts paid or in21 curred by the taxpayer during the taxable year (in22 cluding as contributions) to a biotechnology research 

23 consortium for biotechnology research.’’. 

24 (b) BIOTECHNOLOGY CONTRACT RESEARCH EX25 PENSES.—Section 41(b)(3)(D)(i) of the Internal Revenue 


sroberts on DSK5SPTVN1PROD with BILLS
5 

•HR 3757 IH

1 Code of 1986 is amended by striking ‘‘energy research’’ 

2 and inserting ‘‘energy or biotechnology research’’. 

3 (c) SPECIAL RULES.—Subparagraphs (A)(ii) and 

4 (B)(ii) of section 41(f)(1) of the Internal Revenue Code 

5 of 1986 are both amended by striking ‘‘consortiums,’’ and 

6 inserting ‘‘consortiums and to biotechnology research con7 sortiums,’’. 

8 (d) BIOTECHNOLOGY RESEARCH CONSORTIUM DE9 FINED.—Section 41(f) of the Internal Revenue Code of 

10 1986 is amended by adding at the end the following new 

11 paragraph: 

12 ‘‘(7) BIOTECHNOLOGY RESEARCH CONSOR13 TIUM.— 

14 ‘‘(A) IN GENERAL.—The term ‘bio15 technology research consortium’ means any or16 ganization— 

17 ‘‘(i) which is— 

18 ‘‘(I) described in section 

19 501(c)(3) and is exempt from tax 

20 under section 501(a) and is organized 

21 and operated primarily to conduct bio22 technology research, or 

23 ‘‘(II) organized and operated pri24 marily to conduct biotechnology reVerDate Mar 15 2010 19:50 Dec 21, 2013 Jkt 039200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\H3757.IH H3757

sroberts on DSK5SPTVN1PROD with BILLS
6 

•HR 3757 IH

1 search in the public interest (within 

2 the meaning of section 501(c)(3)), 

3 ‘‘(ii) which is not a private founda4 tion, 

5 ‘‘(iii) to which at least 3 unrelated 

6 persons paid or incurred during the cal7 endar year in which the taxable year of the 

8 organization begins amounts (including as 

9 contributions) to such organization for bio10 technology research, and 

11 ‘‘(iv) to which no single person paid 

12 or incurred (including as contributions) 

13 during such calendar year an amount 

14 equal to more than 50 percent of the total 

15 amounts received by such organization 

16 during such calendar year for bio17 technology research. 

18 ‘‘(B) APPLICABLE RULES.—For purposes 

19 of subparagraph (A), rules similar to the rules 

20 of subparagraphs (B), (C) (applied by sub21 stituting ‘biotechnology’ for ‘research’), and (D) 

22 of paragraph (6) shall apply. 

23 ‘‘(C) BIOTECHNOLOGY RESEARCH.—The 

24 term ‘biotechnology research’ does not in25 clude— 


sroberts on DSK5SPTVN1PROD with BILLS
7 

•HR 3757 IH

1 ‘‘(i) any research which is not quali2 fied research, and 

3 ‘‘(ii) any research which is energy re4 search.’’. 

5 (e) ENERGY RESEARCH CONSORTIUM.—Section 

6 41(f)(A)(iii) of the Internal Revenue Code of 1986 is 

7 amended by striking ‘‘5 unrelated persons’’ and inserting 

8 ‘‘3 unrelated persons’’. 

9 (f) EFFECTIVE DATE.—The amendments made by 

10 this section shall apply to taxable years beginning after 

11 December 31, 2013. 

Æ 


sroberts on DSK5SPTVN1PROD with BILLS