SEC. 2. 1-YEAR EXTENSION OF RESEARCH CREDIT; ALTER-
NATIVE SIMPLIFIED RESEARCH CREDIT IN-
CREASED AND MADE PERMANENT. 
(a) 1-YEAR EXTENSION OF CREDIT.— 
(1) IN GENERAL.—Subparagraph (B) of section 
41(h)(1) of the Internal Revenue Code of 1986 is 
amended by striking ‘‘December 31, 2013’’ and in-
serting ‘‘December 31, 2014’’. 
(2) CONFORMING AMENDMENT.—Subparagraph 
(D) of section 45C(b)(1) of such Code is amended 
by striking ‘‘December 31, 2013’’ and inserting 
‘‘December 31, 2014’’. 
(3) EFFECTIVE DATE.—The amendments made 
by this subsection shall apply to amounts paid or in-
curred after December 31, 2013. 
(b) ALTERNATIVE SIMPLIFIED RESEARCH CREDIT 
INCREASED AND MADE PERMANENT.— 
(1) INCREASED CREDIT.—Subparagraph (A) of 
section 41(c)(5) of such Code (relating to election of 
alternative simplified credit) is amended by striking 
‘‘14 percent (12 percent in the case of taxable years 
ending before January 1, 2009)’’ and inserting ‘‘20 
percent’’. 
(2) CREDIT MADE PERMANENT.— 
(A) IN GENERAL.—Subsection (h) of sec-
tion 41 of such Code is amended by redesig-
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nating the paragraph (2) relating to computa-
tion of taxable year in which credit terminates 
as paragraph (4) and by inserting before such 
paragraph the following new paragraph: 
‘‘(3) TERMINATION NOT TO APPLY TO ALTER-
NATIVE SIMPLIFIED CREDIT.—Paragraph (1) shall 
not apply to the credit determined under subsection 
(c)(5).’’. 
(B) 
CONFORMING
AMENDMENT.—Para-
graph (4) of section 41(h) of such Code, as re-
designated by subparagraph (A), is amended to 
read as follows: 
‘‘(4) COMPUTATION
FOR
TAXABLE
YEAR
IN 
WHICH CREDIT TERMINATES.—In the case of any 
taxable year with respect to which this section ap-
plies to a number of days which is less than the total 
number of days in such taxable year, the amount de-
termined under subsection (c)(1)(B) with respect to 
such taxable year shall be the amount which bears 
the same ratio to such amount (determined without 
regard to this paragraph) as the number of days in 
such taxable year to which this section applies bears 
to the total number of days in such taxable year.’’. 
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(3) EFFECTIVE DATE.—The amendments made 
by this subsection shall apply to taxable years end-
ing after December 31, 2013. 
SEC. 3. BIOTECHNOLOGY RESEARCH. 
(a) 20 PERCENT CREDIT FOR PAYMENTS TO BIO-
TECHNOLOGY
RESEARCH
CONSORTIUM
FOR
BIO-
TECHNOLOGY RESEARCH.— 
(1) IN GENERAL.—Section 41(a)(3) of the In-
ternal Revenue Code of 1986 is amended by insert-
ing ‘‘or a biotechnology research consortium for bio-
technology research’’ before the period at the end. 
(2) LIMITATION.—Section 41(a) of the Internal 
Revenue Code of 1986 is amended by adding at the 
end the following flush sentence: ‘‘The amounts 
taken into account for purposes of paragraph (3) for 
a taxable year may not exceed the greater of 20 per-
cent of the amounts paid or incurred by the tax-
payer during the taxable year (including as contribu-
tions) to an energy research consortium for energy 
research or 20 percent of the amounts paid or in-
curred by the taxpayer during the taxable year (in-
cluding as contributions) to a biotechnology research 
consortium for biotechnology research.’’. 
(b) BIOTECHNOLOGY CONTRACT RESEARCH EX-
PENSES.—Section 41(b)(3)(D)(i) of the Internal Revenue 
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Code of 1986 is amended by striking ‘‘energy research’’ 
and inserting ‘‘energy or biotechnology research’’. 
(c) SPECIAL RULES.—Subparagraphs (A)(ii) and 
(B)(ii) of section 41(f)(1) of the Internal Revenue Code 
of 1986 are both amended by striking ‘‘consortiums,’’ and 
inserting ‘‘consortiums and to biotechnology research con-
sortiums,’’. 
(d) BIOTECHNOLOGY RESEARCH CONSORTIUM DE-
FINED.—Section 41(f) of the Internal Revenue Code of 
1986 is amended by adding at the end the following new 
paragraph: 
‘‘(7) 
BIOTECHNOLOGY
RESEARCH
CONSOR-
TIUM.— 
‘‘(A) 
IN
GENERAL.—The 
term 
‘bio-
technology research consortium’ means any or-
ganization— 
‘‘(i) which is— 
‘‘(I) 
described 
in 
section 
501(c)(3) and is exempt from tax 
under section 501(a) and is organized 
and operated primarily to conduct bio-
technology research, or 
‘‘(II) organized and operated pri-
marily to conduct biotechnology re-
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search in the public interest (within 
the meaning of section 501(c)(3)), 
‘‘(ii) which is not a private founda-
tion, 
‘‘(iii) to which at least 3 unrelated 
persons paid or incurred during the cal-
endar year in which the taxable year of the 
organization begins amounts (including as 
contributions) to such organization for bio-
technology research, and 
‘‘(iv) to which no single person paid 
or incurred (including as contributions) 
during such calendar year an amount 
equal to more than 50 percent of the total 
amounts received by such organization 
during 
such 
calendar 
year 
for 
bio-
technology research. 
‘‘(B) APPLICABLE RULES.—For purposes 
of subparagraph (A), rules similar to the rules 
of subparagraphs (B), (C) (applied by sub-
stituting ‘biotechnology’ for ‘research’), and (D) 
of paragraph (6) shall apply. 
‘‘(C) BIOTECHNOLOGY
RESEARCH.—The 
term ‘biotechnology research’ does not in-
clude— 
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‘‘(i) any research which is not quali-
fied research, and 
‘‘(ii) any research which is energy re-
search.’’. 
(e) ENERGY
RESEARCH
CONSORTIUM.—Section 
41(f)(A)(iii) of the Internal Revenue Code of 1986 is 
amended by striking ‘‘5 unrelated persons’’ and inserting 
‘‘3 unrelated persons’’. 
(f) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2013. 
Æ 
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