21st Century Investment Act of 2015

Bill: 114-hr-1852
Sponsor: full_name: Rep. Edwards, Donna F. [D-MD-4]
Introduced: 2015-04-16
Policy area: Taxation
Subjects: Income tax credits

Income tax deductions

Manufacturing

Research and development
Latest action: action_date: 2015-04-16
text: Referred to the House Committee on Ways and Means.

Summaries:
action_date: 2015-04-16
action_desc: Introduced in House
text: <p><strong>21st Century Investment Act of 2015</strong></p> <p>Amends the Internal Revenue Code to: (1) make permanent the tax credit for increasing research activities; (2) allow an increased 25% tax credit rate for research expenses incurred in the United States; and (3) increase to 15%, through 2024, the tax deduction for income attributable to domestic manufacturing production activities for which substantially all of the research and development occurred in the United States. </p>

tv_txt: I 114th CONGRESS 1st Session H. R. 1852 IN THE HOUSE OF REPRESENTATIVES April 16, 2015 Ms. Edwards (for herself, Mr. Cummings , Mr. Honda , Mr. Keating , Ms. Norton , and Ms. Tsongas ) 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 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.

1. Short title This Act may be cited as the 21st Century Investment Act of 2015 . 2. Research credit made permanent (a) In general Section 41 of the Internal Revenue Code of 1986 is amended by striking subsection (h). (b) Conforming amendments (1) Section 41(c) of such Code is amended by striking paragraph (4). (2) Paragraph (1) of section 45C(b) of such Code is amended by striking subparagraph (D). (c) Effective date The amendments made by this subsection shall apply to amounts paid or incurred after December 31, 2014. 3. Increase in research credit for contracted research with United States businesses (a) In general Section 41 of the Internal Revenue Code of 1986, as amended by section 2 of this Act, is amended by inserting after subsection (g) the following new subsection: (h) 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 percent with respect to qualified United States research 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 taxpayer) 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 subsection, this section shall be applied separately with respect to qualified United States research expenses. . (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. 4. Increase in domestic production activities deduction for manufactured property researched and developed in United States (a) In general Section 199(d) of the Internal Revenue Code of 1986 is amended by redesignating paragraph (10) as paragraph (11) and by inserting after paragraph (9) the following new paragraph: (10) Special rule for certain manufacturing (A) In general In the case of qualified production activities income attributable to the manufacture or production of qualifying production property substantially all of the research and development of which occurred in the United States, subsection (a) shall be applied by substituting 15 percent for 9 percent . (B) Special rule when taxable income used to determine deduction In the case of any taxable year for which the taxpayer’s qualified production activities income exceeds the taxpayer’s taxable income (determined without regard to this section), the amount of taxable income to which the 15 percent 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 production activities income of the taxpayer for the taxable year which is attributable to the manufacture or production of qualifying production property substantially all of the research and development with respect 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 December 31, 2024. . (b) Effective date The amendments made by this section shall apply to taxable years beginning after the date of the enactment of this Act.