To amend the Internal Revenue Code of 1986 to make the research credit permanent, to increase the research credit for businesses manufacturing in the United States, and to make the research credit refundable for small businesses.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Build It in America Act of 2012''.

SEC. 2. CREDIT FOR RESEARCH ACTIVITIES MADE PERMANENT; INCREASED CREDIT 
              FOR BUSINESSES MANUFACTURING IN THE UNITED STATES; CREDIT 
              MADE REFUNDABLE FOR SMALL BUSINESSES.

    (a) Research Credit Made Permanent.--
            (1) In general.--Section 41 of the Internal Revenue Code of 
        1986 is amended by striking subsection (h).
            (2) Conforming amendments.--
                    (A) Subsection (c) of section 41 of such Code is 
                amended by striking paragraph (4).
                    (B) Paragraph (1) of section 45C(b) of such Code is 
                amended by striking subparagraph (D).
            (3) Effective date.--The amendments made by this subsection 
        shall apply to amounts paid or incurred after December 31, 
        2011.
    (b) Enhanced Research Credit for Domestic Manufacturers.--
            (1) In general.--Section 41 of such Code, as amended by 
        subsection (a), is amended by inserting after subsection (g) 
        the following new subsection:
    ``(h) Enhanced Credit for Domestic Manufacturers.--
            ``(1) In general.--In the case of a qualified domestic 
        manufacturer, this section shall be applied by increasing the 
        20 percent amount in subsection (a)(1) by the bonus amount.
            ``(2) Qualified domestic manufacturer.--For purposes of 
        this subsection--
                    ``(A) In general.--The term `qualified domestic 
                manufacturer' means any taxpayer who has a domestic 
                production percentage of more than 50 percent.
                    ``(B) Domestic production percentage.--The term 
                `domestic production percentage' means, with respect to 
                any taxable year, the percentage determined by 
                dividing--
                            ``(i) the taxpayer's domestic production 
                        gross receipts (as defined in paragraph (4) of 
                        section 199(c)) for such taxable year, by
                            ``(ii) the amount which would be determined 
                        under such paragraph with respect to the 
                        taxpayer for such taxable year if the 
                        activities described in such paragraph were 
                        taken into account without regard to whether 
                        they occurred in the United States.
            ``(3) Bonus amount.--For purposes of paragraph (1), the 
        bonus amount shall be determined as follows:


``If the domestic production                      The bonus
  percentage is:                                  amount is:
More than 50 percent but not more than 60   2 percentage points
 percent.................................
More than 60 percent but not more than 70   4 percentage points
 percent.................................
More than 70 percent but not more than 80   6 percentage points
 percent.................................
More than 80 percent but not more than 90   8 percentage points
 percent.................................
More than 90 percent.....................  10 percentage points''.
 

            (2) Effective date.--The amendment made by this section 
        shall apply to expenditures paid or incurred in taxable years 
        beginning after December 31, 2011.
    (c) Credit Made Refundable for Small Businesses.--
            (1) In general.--Section 41 of such Code is amended by 
        adding at the end the following new subsection:
    ``(i) Credit Refundable for Small Businesses.--
            ``(1) In general.--In the case of a small business (as 
        defined in subsection (b)(3)(D)(iii)), 100 percent of the 
        credit determined under this section shall be treated as a 
        credit allowable under subpart C (and not allowable under this 
        subpart).
            ``(2) Businesses with more than 500 employees but less than 
        800 employees.--If any person (not otherwise a small business 
        (as so defined)) would be treated as such a small business if 
        `less than 800' were substituted for `500 or fewer' in 
        subsection (b)(3)(D)(iii), such person shall be treated as a 
        small business for purposes of this subsection but the 
        applicable percentage determined in accordance with the 
        following table shall be substituted for `100 percent' in 
        paragraph (1).

``If the annual number of                                The applicable
  employees is:                                          percentage is:
        More than 500 but not more than 600..........               80 
        More than 600 but not more than 700..........               60 
        More than 700 but not more than 800..........             40''.
            (2) Effective date.--The amendment made by this subsection 
        shall apply to taxable years beginning after December 31, 2011.

Summary: Build It in America Act of 2012 - Amends the Internal Revenue Code to: (1) make the tax credit for increasing research activities permanent, (2) increase the rate of such tax credit for manufacturers whose adjusted gross receipts attributable to domestic production exceed 50%, and (3) make such credit refundable for certain small businesses.