‘‘(C) REDEMPTIONS.—A rule similar to the 
rule of section 1202(c)(3) shall apply for pur-
poses of this subsection. 
‘‘(2) QUALIFIED
HIGH
TECHNOLOGY
SMALL 
BUSINESS CONCERN.—The term ‘qualified high tech-
nology small business concern’ means, with respect 
to any taxable year, any small business concern (as 
defined in section 3 of the Small Business Act) if— 
‘‘(A) such concern employs an average of 
fewer than 500 employees on business days dur-
ing such year, and 
‘‘(B) at least 50 percent of the gross ex-
penditures of such entity for such year are re-
search or experimental expenditures under sec-
tion 174. 
‘‘(d) NATIONAL LIMITATION ON AMOUNT OF INVEST-
MENTS DESIGNATED.— 
‘‘(1) IN GENERAL.—There is a high technology 
investment tax credit limitation for each calendar 
year. Such limitation is— 
‘‘(A) $500,000,000 for 2011, 
‘‘(B) $750,000,000 for 2012 and 2013, 
and 
‘‘(C) $1,000,000,000 for 2014 and 2015. 
VerDate Mar 15 2010 
00:50 Jan 11, 2011
Jkt 099200
PO 00000
Frm 00004
Fmt 6652
Sfmt 6201
E:\BILLS\H133.IH
H133
jbell on DSKDVH8Z91PROD with BILLS
‘‘(2) ALLOCATION OF LIMITATION.—The limita-
tion under paragraph (1) shall be allocated by the 
Secretary among qualified high technology small 
business concerns selected by the Secretary. 
‘‘(3) CARRYOVER OF UNUSED LIMITATION.—If 
the high technology investment tax credit limitation 
for any calendar year exceeds the aggregate amount 
allocated under paragraph (2) for such year, such 
limitation for the succeeding calendar year shall be 
increased by the amount of such excess. No amount 
may be carried under the preceding sentence to any 
calendar year after 2021. 
‘‘(e) CERTAIN TAXPAYERS NOT ELIGIBLE.—No cred-
it shall be determined under this section for any equity 
investment in any qualified high technology small business 
concern made by any individual who, at the time of the 
investment, is— 
‘‘(1) an employee of such concern, or 
‘‘(2) a member of the family (within the mean-
ing of section 267(c)(4)) of an employee of such con-
cern. 
‘‘(f) BASIS REDUCTION.—The basis of any qualified 
equity investment shall be reduced by the amount of any 
credit determined under this section with respect to such 
VerDate Mar 15 2010 
00:50 Jan 11, 2011
Jkt 099200
PO 00000
Frm 00005
Fmt 6652
Sfmt 6201
E:\BILLS\H133.IH
H133
jbell on DSKDVH8Z91PROD with BILLS
investment. This subsection shall not apply for purposes 
of sections 1202, 1400B, and 1400F. 
‘‘(g) REGULATIONS.—The Secretary shall prescribe 
such regulations as may be appropriate to carry out this 
section, including regulations— 
‘‘(1) which prevent the abuse of the purposes of 
this section, 
‘‘(2) which impose appropriate reporting re-
quirements, and 
‘‘(3) which apply the provisions of this section 
to newly formed entities.’’. 
(b) CREDIT MADE PART OF GENERAL BUSINESS 
CREDIT.—Subsection (b) of section 38 of such Code (re-
lating to current year business credit) is amended by strik-
ing ‘‘plus’’ at the end of paragraph (35), by striking the 
period at the end of paragraph (36) and inserting ‘‘, plus’’, 
and by adding at the end the following new paragraph: 
‘‘(37) the high technology investment tax credit 
determined under section 45S.’’. 
(c) CLERICAL AMENDMENT.—The table of sections 
for subpart D of part IV of subchapter A of chapter 1 
of such Code is amended by adding at the end the fol-
lowing new item: 
‘‘Sec. 45S. High technology investment tax credit.’’. 
VerDate Mar 15 2010 
00:50 Jan 11, 2011
Jkt 099200
PO 00000
Frm 00006
Fmt 6652
Sfmt 6211
E:\BILLS\H133.IH
H133
jbell on DSKDVH8Z91PROD with BILLS
(d) EFFECTIVE DATE.—The amendments made by 
this section shall apply to investments made after Decem-
ber 31, 2010, in taxable years ending after such date. 
Æ 
VerDate Mar 15 2010 
00:50 Jan 11, 2011
Jkt 099200
PO 00000
Frm 00007
Fmt 6652
Sfmt 6301
E:\BILLS\H133.IH
H133
jbell on DSKDVH8Z91PROD with BILLS