I 
110TH CONGRESS 
1ST SESSION H. R. 2138 
To amend the Internal Revenue Code of 1986 to permanently extend the 
research credit and strengthen the alternative simplified credit for quali-
fied research expenses. 
IN THE HOUSE OF REPRESENTATIVES 
MAY 3, 2007 
Mr. LEVIN (for himself, Mr. CAMP of Michigan, Mr. MCDERMOTT, Mr. 
HERGER, Mr. LEWIS of Georgia, Mr. RAMSTAD, Mr. NEAL of Massachu-
setts, Mr. SAM JOHNSON of Texas, Mr. POMEROY, Mr. ENGLISH of Penn-
sylvania, Mrs. JONES of Ohio, Mr. WELLER of Illinois, Mr. LARSON of 
Connecticut, Mr. HULSHOF, Mr. EMANUEL, Mr. LEWIS of Kentucky, Mr. 
BLUMENAUER, Mr. BRADY of Texas, Mr. KIND, Mr. REYNOLDS, Mr. 
PASCRELL, Mr. CANTOR, Ms. BERKLEY, Mr. NUNES, Mr. CROWLEY, Mr. 
TIBERI, Mr. VAN HOLLEN, Mr. PORTER, Ms. SCHWARTZ, and Mr. DAVIS 
of Alabama) 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 permanently 
extend the research credit and strengthen the alternative 
simplified credit for qualified research expenses. 
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 ‘‘Investment in America 
Act of 2007’’. 
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SEC. 2. FINDINGS. 
The Congress finds as follows: 
(1) Research and development performed in the 
United States results in quality jobs, better and 
safer products, increased ownership of technology- 
based intellectual property, and higher productivity 
in the United States. 
(2) The extent to which companies perform and 
increase research and development activities in the 
United States is in part dependent on Federal tax 
policy. 
(3) The Congress should make permanent a re-
search and development credit that provides a mean-
ingful incentive at a commensurate rate for all types 
of taxpayers. 
SEC. 3. INCREASE IN RATE OF ALTERNATIVE SIMPLIFIED 
CREDIT. 
(a) IN GENERAL.—Subparagraph (A) of section 
41(c)(5) of the Internal Revenue Code of 1986 (relating 
to election of alternative simplified credit) is amended by 
striking ‘‘12 percent’’ and inserting ‘‘20 percent’’. 
(b) EFFECTIVE DATE.—The amendment made by 
this section shall apply to amounts paid or incurred after 
December 31, 2007. 
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SEC. 4. PERMANENT EXTENSION OF RESEARCH CREDIT. 
(a) IN GENERAL.—Section 41 of the Internal Rev-
enue Code of 1986 (relating to credit for increasing re-
search activities) is amended by striking subsection (h). 
(b) CONFORMING AMENDMENT.—Paragraph (1) of 
section 45C(b) of such Code is amended by striking sub-
paragraph (D). 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to amounts paid or incurred after 
December 31, 2007. 
SEC. 5. REPEAL THE ALTERNATIVE INCREMENTAL CREDIT. 
(a) IN GENERAL.—Section 41(c) of the Internal Rev-
enue Code of 1986, as amended by section 3, is amended 
by striking paragraph (4) and by redesignating para-
graphs (5), (6), and (7) as paragraphs (4), (5), and (6), 
respectively. 
(b) 
CONFORMING
AMENDMENT.—Section 
41(c)(4)(C) of such Code, as amended by subsection (a), 
is amended by striking the last sentence. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2007. 
Æ 
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