I 
111TH CONGRESS 
2D SESSION 
H. R. 4770 
To amend the Internal Revenue Code of 1986 to increase the credit for 
research expenses for 2010 and 2011 and to allow the credit to be assigned. 
IN THE HOUSE OF REPRESENTATIVES 
MARCH 4, 2010 
Mr. HOLT (for himself, Mr. KIND, Ms. SCHWARTZ, and Mr. FILNER) intro-
duced 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 2010 and 2011 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 2010’’. 
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 
VerDate Nov 24 2008 
05:21 Mar 05, 2010
Jkt 089200
PO 00000
Frm 00001
Fmt 6652
Sfmt 6201
E:\BILLS\H4770.IH
H4770
jbell on DSKDVH8Z91PROD with BILLS
(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 2010 or 2011— 
‘‘(1) subsection (a)(1) shall be applied by sub-
stituting ‘30 percent’ for ‘20 percent’, 
‘‘(2) subsection (c)(5)(A) shall be applied sub-
stituting ‘20 percent’ for ‘14 percent’, and 
‘‘(3) subsection (c)(5)(B)(ii) shall be applied 
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, 2009’’ 
and inserting ‘‘December 31, 2011’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2009. 
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.— 
VerDate Nov 24 2008 
05:21 Mar 05, 2010
Jkt 089200
PO 00000
Frm 00002
Fmt 6652
Sfmt 6201
E:\BILLS\H4770.IH
H4770
jbell on DSKDVH8Z91PROD with BILLS
‘‘(1) IN GENERAL.—If, for any taxable year be-
ginning in 2010 or 2011, 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.’’. 
VerDate Nov 24 2008 
05:21 Mar 05, 2010
Jkt 089200
PO 00000
Frm 00003
Fmt 6652
Sfmt 6201
E:\BILLS\H4770.IH
H4770
jbell on DSKDVH8Z91PROD with BILLS
(b) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2009. 
Æ 
VerDate Nov 24 2008 
05:21 Mar 05, 2010
Jkt 089200
PO 00000
Frm 00004
Fmt 6652
Sfmt 6301
E:\BILLS\H4770.IH
H4770
jbell on DSKDVH8Z91PROD with BILLS