I 
111TH CONGRESS 
1ST SESSION 
H. R. 422 
To amend the Internal Revenue Code of 1986 to extend the research credit 
through 2010 and to increase and make permanent the alternative sim-
plified research credit. 
IN THE HOUSE OF REPRESENTATIVES 
JANUARY 9, 2009 
Mr. MEEK of Florida (for himself and Mr. BRADY of Texas) 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 extend 
the research credit through 2010 and to increase and 
make permanent the alternative simplified research cred-
it. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. EXTENSION OF RESEARCH CREDIT; ALTER-
NATIVE SIMPLIFIED RESEARCH CREDIT IN-
CREASED AND MADE PERMANENT. 
(a) EXTENSION OF CREDIT.— 
(1) IN GENERAL.—Subparagraph (B) of section 
41(h)(1) of the Internal Revenue Code of 1986 is 
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amended by striking ‘‘December 31, 2009’’ and in-
serting ‘‘December 31, 2010’’. 
(2) CONFORMING AMENDMENT.—Subparagraph 
(D) of section 45C(b)(1) of such Code is amended 
by striking ‘‘December 31, 2009’’ and inserting 
‘‘December 31, 2010’’. 
(3) EFFECTIVE DATE.—The amendments made 
by this subsection shall apply to amounts paid or in-
curred after December 31, 2009. 
(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-
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: 
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‘‘(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.’’. 
(3) EFFECTIVE DATE.—The amendment made 
by this subsection shall apply to taxable years end-
ing after December 31, 2008. 
Æ 
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