Innovation, Research, and Manufacturing Act

Bill: 114-hr-1536
Sponsor: full_name: Rep. Brownley, Julia [D-CA-26]
Introduced: 2015-03-23
Policy area: Taxation
Subjects: Business expenses

Employment taxes

Income tax credits

Research and development

Small business
Latest action: action_date: 2015-03-23
text: Referred to the House Committee on Ways and Means.

Summaries:
action_date: 2015-03-23
action_desc: Introduced in House
text: <p><strong>Innovation, Research, and Manufacturing Act</strong></p> <p>Amends the Internal Revenue Code, with respect to the tax credit for increasing research activities, to: (1) increase such credit (from the sum of 20% of the excess of qualified research expenses for the taxable year over the base amount, 20% of the basic research payments, and 20% of the amounts paid by the taxpayer in carrying on any trade or business during the taxable year to an energy research consortium for energy research to the sum of 30% of each of those); (2) make such credit permanent; and (3) allow such credit to offset the employment taxes of an eligible small employer, as defined by the Small Business Act. </p>

tv_txt: I 114th CONGRESS 1st Session H. R. 1536 IN THE HOUSE OF REPRESENTATIVES March 23, 2015 Ms. Brownley of California 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 increase and make permanent the research credit.

1. Short title This Act may be cited as the Innovation, Research, and Manufacturing Act . 2. Research credit increased and made permanent (a) Credit amount increased by 50 percent Paragraphs (1), (2), and (3) of section 41(a) of the Internal Revenue Code of 1986 are each amended by striking 20 percent and inserting 30 percent . (b) Credit made permanent (1) In general Section 41 of such Code 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). (c) Credit allowed against payroll taxes for small employers Section 41 of such Code, as amended by subsection (b), is amended by adding at the end the following new subsection: (h) Credit allowed against payroll taxes for small employers (1) In general In the case of an eligible small employer, so much of the credit determined under subsection (a) for the taxable year (determined without regard to this subsection) as does not exceed the payroll taxes paid by such employer for periods during such taxable year shall be treated for purposes of this title as a credit allowed under subpart C. (2) Coordination with research credit The amount determined under subsection (a) for any taxable year shall be reduced by the amount treated under paragraph (1) as a credit allowed under subpart C. (3) Eligible small employer For purposes of this subsection, the term eligible small employer means a small business concern within the meaning of section 3 of the Small Business Act. (4) Payroll taxes For purposes of this subsection, the term payroll taxes means— (A) any tax imposed under section 3111 or 3221(a), (B) so much of any tax imposed under section 3211(a) as relates to the rates of tax under subsections (a) and (b) of section 3111, and (C) 50 percent of any tax imposed under section 1401. . (d) Effective dates (1) In general Except as provided in paragraph (2), the amendments made by this section shall apply to taxable years beginning after December 31, 2014. (2) Extension of credit The amendments made by subsection (b) shall apply to amounts paid or incurred after December 31, 2014.