I 
114TH CONGRESS 
1ST SESSION H. R. 1536 
To amend the Internal Revenue Code of 1986 to increase and make 
permanent the research credit. 
IN THE HOUSE OF REPRESENTATIVES 
MARCH 23, 2015 
Ms. BROWNLEY of California 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 
and make permanent the research credit. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Innovation, Research, 
and Manufacturing Act’’. 
SEC. 2. RESEARCH CREDIT INCREASED AND MADE PERMA-
NENT. 
(a) CREDIT AMOUNT INCREASED BY 50 PERCENT.— 
Paragraphs (1), (2), and (3) of section 41(a) of the Inter-
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nal Revenue Code of 1986 are each amended by striking 
‘‘20 percent’’ and inserting ‘‘30 percent’’. 
(b) CREDIT MADE PERMANENT.— 
(1) IN GENERAL.—Section 41 of such Code is 
amended by striking subsection (h). 
(2) CONFORMING AMENDMENTS.— 
(A) Subsection (c) of section 41 of such 
Code is amended by striking paragraph (4). 
(B) Paragraph (1) of section 45C(b) of 
such Code is amended by striking subparagraph 
(D). 
(c) CREDIT ALLOWED AGAINST PAYROLL TAXES FOR 
SMALL EMPLOYERS.—Section 41 of such Code, as amend-
ed by subsection (b), is amended by adding at the end 
the following new subsection: 
‘‘(h) CREDIT ALLOWED AGAINST PAYROLL TAXES 
FOR SMALL EMPLOYERS.— 
‘‘(1) IN GENERAL.—In the case of an eligible 
small employer, so much of the credit determined 
under subsection (a) for the taxable year (deter-
mined without regard to this subsection) as does not 
exceed the payroll taxes paid by such employer for 
periods during such taxable year shall be treated for 
purposes of this title as a credit allowed under sub-
part C. 
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‘‘(2) COORDINATION
WITH
RESEARCH
CRED-
IT.—The amount determined under subsection (a) 
for any taxable year shall be reduced by the amount 
treated under paragraph (1) as a credit allowed 
under subpart C. 
‘‘(3) ELIGIBLE
SMALL
EMPLOYER.—For pur-
poses of this subsection, the term ‘eligible small em-
ployer’ means a small business concern within the 
meaning of section 3 of the Small Business Act. 
‘‘(4) PAYROLL TAXES.—For purposes of this 
subsection, the term ‘payroll taxes’ means— 
‘‘(A) any tax imposed under section 3111 
or 3221(a), 
‘‘(B) so much of any tax imposed under 
section 3211(a) as relates to the rates of tax 
under subsections (a) and (b) of section 3111, 
and 
‘‘(C) 50 percent of any tax imposed under 
section 1401.’’. 
(d) EFFECTIVE DATES.— 
(1) IN GENERAL.—Except as provided in para-
graph (2), the amendments made by this section 
shall apply to taxable years beginning after Decem-
ber 31, 2014. 
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(2) EXTENSION OF CREDIT.—The amendments 
made by subsection (b) shall apply to amounts paid 
or incurred after December 31, 2014. 
Æ 
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