I 

111TH CONGRESS 

2D SESSION H. R. 4770 

To amend the Internal Revenue Code of 1986 to increase the credit for 

research expenses for 2010 and 2011 and to allow the credit to be assigned. 

IN THE HOUSE OF REPRESENTATIVES 

MARCH 4, 2010 

Mr. HOLT (for himself, Mr. KIND, Ms. SCHWARTZ, and Mr. FILNER) 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 increase 

the credit for research expenses for 2010 and 2011 and 

to allow the credit to be assigned. 

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 ‘‘Create Jobs by Ex5 panding the R&D Tax Credit Act of 2010’’. 

6 SEC. 2. INCREASE IN RESEARCH EXPENSES TAKEN INTO 

7 ACCOUNT FOR THE RESEARCH CREDIT. 

8 (a) IN GENERAL.—Section 41 of the Internal Rev9 enue Code of 1986 is amended by redesignating subsection 


jbell on DSKDVH8Z91PROD with BILLS
2 

•HR 4770 IH

1 (h) as subsection (i) and by inserting after subsection (g) 

2 the following new subsection: 

3 ‘‘(h) TEMPORARY BONUS FOR QUALIFYING RE4 SEARCH EXPENSES.—In the case of any taxable year be5 ginning in 2010 or 2011— 

6 ‘‘(1) subsection (a)(1) shall be applied by sub7 stituting ‘30 percent’ for ‘20 percent’, 

8 ‘‘(2) subsection (c)(5)(A) shall be applied sub9 stituting ‘20 percent’ for ‘14 percent’, and 

10 ‘‘(3) subsection (c)(5)(B)(ii) shall be applied 

11 substituting ‘12 percent’ for ‘6 percent’.’’. 

12 (b) EXTENSION OF CREDIT.—Subparagraph (B) of 

13 section 41(i)(1) of such Code, as redesignated by sub14 section (a), is amended by striking ‘‘December 31, 2009’’ 

15 and inserting ‘‘December 31, 2011’’. 

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

17 this section shall apply to taxable years beginning after 

18 December 31, 2009. 

19 SEC. 3. TRANSFERABILITY OF RESEARCH CREDIT. 

20 (a) IN GENERAL.—Section 41 of the Internal Rev21 enue Code of 1986, as amended by section 2, is amended 

22 by redesignating subsection (i) as subsection (j) and by 

23 inserting after subsection (h) the following new subsection: 

24 ‘‘(i) CREDIT MAY BE ASSIGNED.— 


jbell on DSKDVH8Z91PROD with BILLS
3 

•HR 4770 IH

1 ‘‘(1) IN GENERAL.—If, for any taxable year be2 ginning in 2010 or 2011, a qualified taxpayer elects 

3 the application of this subsection for such taxable 

4 year, the amount of credit determined under this 

5 section for such year which would (but for this sub6 section) be allowable to the qualified taxpayer shall 

7 be allowable to the person designated by the quali8 fied taxpayer. Such amount shall be determined by 

9 applying this section separately from section 38 for 

10 such year. The person so designated shall be treated 

11 as the taxpayer with respect to this section (other 

12 than this subsection) for purposes of this title (other 

13 than this paragraph). 

14 ‘‘(2) TREATMENT OF AMOUNTS PAID FOR AS15 SIGNMENT.—If any amount is paid to the person 

16 who assigns the credit determined under this sec17 tion, no portion of such amount shall be includible 

18 in such person’s gross income. 

19 ‘‘(3) QUALIFIED TAXPAYER.—The term ‘quali20 fied taxpayer’ means, with respect to any taxable 

21 year, any small business concern (as defined in sec22 tion 3 of the Small Business Act) if such concern 

23 employs an average of fewer than 500 employees on 

24 business days during such year.’’. 


jbell on DSKDVH8Z91PROD with BILLS
4 

•HR 4770 IH

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

2 this section shall apply to taxable years beginning after 

3 December 31, 2009. 

Æ 


jbell on DSKDVH8Z91PROD with BILLS