I 
112TH CONGRESS 
1ST SESSION 
H. R. 132 
To amend the Internal Revenue Code of 1986 to increase the credit for 
research expenses for 2011 and 2012 and to allow the credit to be assigned. 
IN THE HOUSE OF REPRESENTATIVES 
JANUARY 5, 2011 
Mr. HOLT (for himself and Mr. KIND) 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 2011 and 2012 and 
to allow the credit to be assigned. 
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 ‘‘Create Jobs by Ex-
panding the R&D Tax Credit Act of 2011’’. 
SEC. 2. INCREASE IN RESEARCH EXPENSES TAKEN INTO 
ACCOUNT FOR THE RESEARCH CREDIT. 
(a) IN GENERAL.—Section 41 of the Internal Rev-
enue Code of 1986 is amended by redesignating subsection 
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(h) as subsection (i) and by inserting after subsection (g) 
the following new subsection: 
‘‘(h) TEMPORARY BONUS
FOR QUALIFYING RE-
SEARCH EXPENSES.—In the case of any taxable year be-
ginning in 2011 or 2012— 
‘‘(1) subsection (a)(1) shall be applied by sub-
stituting ‘30 percent’ for ‘20 percent’, 
‘‘(2) subsection (c)(5)(A) shall be applied by 
substituting ‘20 percent’ for ‘14 percent’, and 
‘‘(3) subsection (c)(5)(B)(ii) shall be applied by 
substituting ‘12 percent’ for ‘6 percent’.’’. 
(b) EXTENSION OF CREDIT.—Subparagraph (B) of 
section 41(i)(1) of such Code, as redesignated by sub-
section (a), is amended by striking ‘‘December 31, 2011’’ 
and inserting ‘‘December 31, 2012’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2010. 
SEC. 3. TRANSFERABILITY OF RESEARCH CREDIT. 
(a) IN GENERAL.—Section 41 of the Internal Rev-
enue Code of 1986, as amended by section 2, is amended 
by redesignating subsection (i) as subsection (j) and by 
inserting after subsection (h) the following new subsection: 
‘‘(i) CREDIT MAY BE ASSIGNED.— 
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‘‘(1) IN GENERAL.—If, for any taxable year be-
ginning in 2011 or 2012, a qualified taxpayer elects 
the application of this subsection for such taxable 
year, the amount of credit determined under this 
section for such year which would (but for this sub-
section) be allowable to the qualified taxpayer shall 
be allowable to the person designated by the quali-
fied taxpayer. Such amount shall be determined by 
applying this section separately from section 38 for 
such year. The person so designated shall be treated 
as the taxpayer with respect to this section (other 
than this subsection) for purposes of this title (other 
than this paragraph). 
‘‘(2) TREATMENT OF AMOUNTS PAID FOR AS-
SIGNMENT.—If any amount is paid to the person 
who assigns the credit determined under this sec-
tion, no portion of such amount shall be includible 
in such person’s gross income. 
‘‘(3) QUALIFIED TAXPAYER.—The term ‘quali-
fied taxpayer’ means, with respect to any taxable 
year, any small business concern (as defined in sec-
tion 3 of the Small Business Act) if such concern 
employs an average of fewer than 500 employees on 
business days during such year.’’. 
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