Teacher:In this task, you are given text for US Congressional and California state bills, your task is to generate a summary for this bill.
Teacher: Now, understand the problem? Solve this instance: SECTION 1. SHORT TITLE.

This Act may be cited as the ''American Research and
Competitiveness Act of 2015''.

SEC. 2. RESEARCH CREDIT SIMPLIFIED AND MADE PERMANENT.

(a) In General.--Section 41(a) of the Internal Revenue Code of 1986
is amended to read as follows:
''(a) In General.--For purposes of section 38, the research credit
determined under this section for the taxable year shall be an amount
equal to the sum of--
''(1) 20 percent of so much of the qualified research
expenses for the taxable year as exceeds 50 percent of the
average qualified research expenses for the 3 taxable years
preceding the taxable year for which the credit is being
determined,
''(2) 20 percent of so much of the basic research payments
for the taxable year as exceeds 50 percent of the average basic
research payments for the 3 taxable years preceding the taxable
year for which the credit is being determined, plus
''(3) 20 percent of the amounts paid or incurred by the
taxpayer in carrying on any trade or business of the taxpayer
during the taxable year (including as contributions) to an
energy research consortium for energy research.''.
(b) Repeal of Termination.--Section 41 of such Code is amended by
striking subsection (h).
(c) Credit Allowed Against Alternative Minimum Tax in Case of
Eligible Small Business.--Section 38(c)(4)(B) of such Code is amended
by redesignating clauses (ii) through (ix) as clauses (iii) through
(x), respectively, and by inserting after clause (i) the following new
clause:
''(ii) the credit determined under section
41 for the taxable year with respect to an
eligible small business (as defined in
paragraph (5)(C), after application of rules
similar to the rules of paragraph (5)(D)),''.
(d) Conforming Amendments.--
(1) Section 41(c) of such Code is amended to read as
follows:
''(c) Determination of Average Research Expenses for Prior Years.--
''(1) Special rule in case of no qualified research
expenditures in any of 3 preceding taxable years.--In any case
in which the taxpayer has no qualified research expenses in any
one of the 3 taxable years preceding the taxable year for which
the credit is being determined, the amount determined under
subsection (a)(1) for such taxable year shall be equal to 10
percent of the qualified research expenses for the taxable
year.
''(2) Consistent treatment of expenses.--
''(A) In general.--Notwithstanding whether the
period for filing a claim for credit or refund has
expired for any taxable year taken into account in
determining the average qualified research expenses, or
average basic research payments, taken into account
under subsection (a), the qualified research expenses
and basic research payments taken into account in
determining such averages shall be determined on a
basis consistent with the determination of qualified
research expenses and basic research payments,
respectively, for the credit year.
''(B) Prevention of distortions.--The Secretary may
prescribe regulations to prevent distortions in
calculating a taxpayer's qualified research expenses or
basic research payments caused by a change in
accounting methods used by such taxpayer between the
current year and a year taken into account in
determining the average qualified research expenses or
average basic research payments taken into account
under subsection (a).''.
(2) Section 41(e) of such Code is amended--
(A) by striking all that precedes paragraph (6) and
inserting the following:
''(e) Basic Research Payments.--For purposes of this section--
''(1) In general.--The term 'basic research payment' means,
with respect to any taxable year, any amount paid in cash
during such taxable year by a corporation to any qualified
organization for basic research but only if--
''(A) such payment is pursuant to a written
agreement between such corporation and such qualified
organization, and
''(B) such basic research is to be performed by
such qualified organization.
''(2) Exception to requirement that research be performed
by the organization.--In the case of a qualified organization
described in subparagraph (C) or (D) of paragraph (3),
subparagraph (B) of paragraph (1) shall not apply.'',
(B) by redesignating paragraphs (6) and (7) as
paragraphs (3) and (4), respectively, and
(C) in paragraph (4), as so redesignated, by
striking subparagraphs (B) and (C) and by redesignating
subparagraphs (D) and (E) as subparagraphs (B) and (C),
respectively.
(3) Section 41(f)(3) of such Code is amended--
(A)(i) by striking '', and the gross receipts'' in
subparagraph (A)(i) and all that follows through
''determined under clause (iii)'',
(ii) by striking clause (iii) of subparagraph (A)
and redesignating clauses (iv), (v), and (vi), thereof,
as clauses (iii), (iv), and (v), respectively,
(iii) by striking ''and (iv)'' each place it
appears in subparagraph (A)(iv) (as so redesignated)
and inserting ''and (iii)'',
(iv) by striking subclause (IV) of subparagraph
(A)(iv) (as so redesignated), by striking '', and'' at
the end of subparagraph (A)(iv)(III) (as so
redesignated) and inserting a period, and by adding
''and'' at the end of subparagraph (A)(iv)(II) (as so
redesignated),
(v) by striking ''(A)(vi)'' in subparagraph (B) and
inserting ''(A)(v)'',
(vi) by striking ''(A)(iv)(II)'' in subparagraph
(B)(i)(II) and inserting ''(A)(iii)(II)'',
(B) by striking '', and the gross receipts of the
predecessor,'' in subparagraph (A)(iv)(II) (as so
redesignated),
(C) by striking '', and the gross receipts of,'' in
subparagraph (B),
(D) by striking '', or gross receipts of,'' in
subparagraph (B)(i)(I), and
(E) by striking subparagraph (C) and inserting the
following new subparagraph:
''(C) Adjustments for basic research payments.--In
the case of basic research payments, rules similar to
the rules of subparagraph (A) and (B) shall apply.''.
(4) Section 41(f)(4) of such Code is amended by striking
''and gross receipts'' and inserting ''and basic research
payments''.
(5) Section 45C(b)(1) of such Code is amended by striking
subparagraph (D).
(6) Section 45C(c)(2) of such Code is amended--
(A) by striking ''base period research expenses''
and inserting ''average qualified research expenses'',
and
(B) by striking ''base period research expenses''
in the heading and inserting ''average qualified
research expenses''.
(7) Section 280C(c) of such Code is amended--
(A) by striking ''basic research expenses (as
defined in section 41(e)(2))'' in paragraph (1) and
inserting ''basic research payments (as defined in
section 41(e)(1))'', and
(B) by striking ''basic research expenses'' in
paragraph (2)(B) and inserting ''basic research
payments''.
(e) Effective Date.--
(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) Subsection (b).--The amendment made by subsection (b)
shall apply to amounts paid or incurred after December 31,
2014.

SEC. 3. BUDGETARY EFFECTS.

The budgetary effects of this Act shall not be entered on either
PAYGO scorecard maintained pursuant to section 4(d) of the Statutory
Pay-As-You-Go Act of 2010.

Passed the House of Representatives May 20, 2015.

Attest:

KAREN L. HAAS,

Clerk.
Student:
American Research and Competitiveness Act of 2015 (Sec. 2) This bill revises and makes permanent after 2014 the research tax credit. The rate of such credit is modified to equal the sum of 20% of so much of the qualified research expenses for the taxable year as exceeds 50% of the average qualified research expenses for the three preceding taxable years, 20% of so much of the basic research payments for the taxable year as exceeds 50% of the average basic research payments for the three preceding taxable years, plus 20% of amounts paid by a business taxpayer to an energy research consortium for energy research. If a taxpayer has no qualified research expenses in any of the three preceding taxable years, the rate of the tax credit is reduced to 10% of current research expenses. The bill also provides that in the case of an eligible small business (i.e., a corporation whose stock is not publicly traded, a partnership, or a sole proprietorship with annual gross receipts not exceeding $50 million in a three-year period), the research credit may offset alternative minimum tax liability. (Sec. 3) The bill prohibits the entry of the budgetary effects of this Act on either PAYCO scorecard under the Statutory Pay-As-You-Go Act of 2010.