I 
112TH CONGRESS 
1ST SESSION 
H. R. 871 
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 tax-
payers whose gross receipts are predominantly from domestic production 
activities. 
IN THE HOUSE OF REPRESENTATIVES 
MARCH 2, 2011 
Mr. SHULER (for himself, Mr. HUNTER, Mr. MANZULLO, Mr. BISHOP of 
Georgia, Mr. RIBBLE, Mr. MCKINLEY, and Mr. LIPINSKI) 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 pro-
vide an increase in such credit for taxpayers whose gross 
receipts are predominantly from domestic production ac-
tivities. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. CREDIT FOR RESEARCH ACTIVITIES MADE 
PERMANENT 
AND 
INCREASED 
FOR 
TAX-
PAYERS WITH DOMESTIC PRODUCTION AC-
TIVITIES. 
(a) RESEARCH CREDIT MADE PERMANENT.— 
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(1) IN GENERAL.—Section 41 of the Internal 
Revenue Code of 1986 is amended by striking sub-
section (h). 
(2) CONFORMING AMENDMENT.—Subsection (c) 
of section 41 of such Code is amended by striking 
paragraph (4). 
(b) INCREASED CREDIT FOR TAXPAYERS WITH DO-
MESTIC PRODUCTION ACTIVITIES.—Section 41 of such 
Code (as amended by subsection (a)) is amended by add-
ing at the end the following new subsection: 
‘‘(h) INCREASED CREDIT FOR TAXPAYERS WHOSE 
GROSS RECEIPTS ARE PREDOMINANTLY FROM DOMESTIC 
PRODUCTION ACTIVITIES.— 
‘‘(1) IN GENERAL.—In the case of any taxpayer 
whose domestic production activity percentage for 
any taxable year exceeds 50 percent, this section 
shall be applied for such taxable year by increasing 
each credit determination percentage by the bonus 
number of percentage points determined in accord-
ance with the following table: 
‘‘In the case of a taxpayer whose domestic production activity 
percentage is: 
The bonus num-
ber of percent-
age points is: 
More than 50% but not more than 60% ..................................
More than 60% but not more than 70% ..................................
More than 70% but not more than 80% ..................................
More than 80% but not more than 90% ..................................
More than 90% .........................................................................
10. 
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‘‘(2) DOMESTIC
PRODUCTION
ACTIVITY
PER-
CENTAGE.—For purposes of this subsection, the 
term ‘domestic production activity percentage’ 
means, with respect to any taxable year, the ratio 
(expressed as a percentage) determined by divid-
ing— 
‘‘(A) the taxpayer’s domestic production 
gross receipts (as defined in paragraph (4) of 
section 199(c)) for such taxable year, by 
‘‘(B) the amount which would be deter-
mined under such paragraph with respect to the 
taxpayer for such taxable year if the activities 
described in such paragraph were taken into ac-
count without regard to whether they occurred 
in the United States. 
‘‘(3) CREDIT DETERMINATION PERCENTAGE.— 
For purposes of this subsection, the term ‘credit de-
termination percentage’ means— 
‘‘(A) each of the percentages appearing in 
subsection (a), and 
‘‘(B) the ‘14 percent’ appearing in sub-
section (c)(5)(A).’’. 
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(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2010. 
Æ 
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