I 
115TH CONGRESS 
1ST SESSION H. R. 2671 
To amend the Internal Revenue Code of 1986 to make permanent the credit 
for increasing research activities, to increase such credit for amounts 
paid or incurred for qualified research occurring in the United States, 
and to increase the domestic production activities deduction for the 
manufacture of property substantially all of the research and development 
of which occurred in the United States. 
IN THE HOUSE OF REPRESENTATIVES 
MAY 25, 2017 
Mr. BROWN of Maryland (for himself, Ms. NORTON, Mr. KEATING, Ms. 
MICHELLE LUJAN GRISHAM of New Mexico, Mr. CUMMINGS, and Mr. 
CICILLINE) introduced the following bill; which was referred to the Com-
mittee on Ways and Means 
A BILL 
To amend the Internal Revenue Code of 1986 to make 
permanent the credit for increasing research activities, 
to increase such credit for amounts paid or incurred 
for qualified research occurring in the United States, 
and to increase the domestic production activities deduc-
tion for the manufacture of property substantially all 
of the research and development of which occurred in 
the United States. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
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SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘21st Century Invest-
ment Act of 2017’’. 
SEC. 2. INCREASE IN RESEARCH CREDIT FOR CONTRACTED 
RESEARCH 
WITH 
UNITED 
STATES 
BUSI-
NESSES. 
(a) IN GENERAL.—Section 41 of the Internal Rev-
enue Code of 1986, as amended by section 2 of this Act, 
is amended by inserting after subsection (h) the following 
new subsection: 
‘‘(i) SPECIAL RULE FOR CONTRACTED RESEARCH 
WITH UNITED STATES MANUFACTURING BUSINESS.— 
‘‘(1) IN GENERAL.—If the taxpayer elects the 
application of this subsection, subsection (a)(1) shall 
be applied by substituting ‘25 percent’ for ‘20 per-
cent’ with respect to qualified United States re-
search expenses. 
‘‘(2) QUALIFIED
UNITED
STATES
RESEARCH 
EXPENSES.—For purposes of this subsection, the 
term ‘qualified United States research expenses’ 
means any amount paid or incurred by the taxpayer 
to any person (other than an employee of the tax-
payer) for qualified research, substantially all of 
which occurs in the United States. 
‘‘(3) SEPARATE APPLICATION OF SECTION.—In 
the case of any election of the application of this 
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subsection, this section shall be applied separately 
with respect to qualified United States research ex-
penses.’’. 
(b) EFFECTIVE DATE.—The amendments made by 
this section shall apply to amounts paid or incurred for 
taxable years beginning after the date of the enactment 
of this Act. 
SEC. 3. INCREASE IN DOMESTIC PRODUCTION ACTIVITIES 
DEDUCTION 
FOR 
MANUFACTURED 
PROP-
ERTY 
RESEARCHED 
AND 
DEVELOPED 
IN 
UNITED STATES. 
(a) IN GENERAL.—Section 199(d) of the Internal 
Revenue Code of 1986 is amended by redesignating para-
graph (10) as paragraph (11) and by inserting after para-
graph (9) the following new paragraph: 
‘‘(10) SPECIAL RULE FOR CERTAIN MANUFAC-
TURING.— 
‘‘(A) IN GENERAL.—In the case of quali-
fied production activities income attributable to 
the manufacture or production of qualifying 
production property substantially all of the re-
search and development of which occurred in 
the United States, subsection (a) shall be ap-
plied by substituting ‘15 percent’ for ‘9 per-
cent’. 
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‘‘(B) SPECIAL RULE WHEN TAXABLE IN-
COME USED TO DETERMINE DEDUCTION.—In 
the case of any taxable year for which the tax-
payer’s qualified production activities income 
exceeds the taxpayer’s taxable income (deter-
mined without regard to this section), the 
amount of taxable income to which the 15 per-
cent amount in subparagraph (A) applies under 
subsection (a)(1) shall be an amount equal to 
the amount which bears the same ratio to such 
taxable income (as so determined) as— 
‘‘(i) the amount of qualified produc-
tion activities income of the taxpayer for 
the taxable year which is attributable to 
the manufacture or production of quali-
fying production property substantially all 
of the research and development with re-
spect to which occurred in the United 
States, bears to 
‘‘(ii) all qualified production activities 
income of the taxpayer for the taxable 
year. 
‘‘(C) TERMINATION.—This paragraph shall 
not apply to taxable years beginning after De-
cember 31, 2024.’’. 
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(b) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
the date of the enactment of this Act. 
Æ 
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