In this task, you are given text for US Congressional and California state bills, your task is to generate a summary for this bill.

Input: Consider Input: SECTION 1. SHORT TITLE.

This Act may be cited as the ''Adult Day Center Enhancement Act''.

SEC. 2. FINDINGS.

The Congress finds the following:
(1) One in 6 people in the United States lives with a
neurological disease or condition that can often result in
disability, and which may require the individual to seek
assistance in carrying out the activities of daily living.
Neurological diseases or conditions such as multiple sclerosis
(MS), early-onset Parkinson's disease, and traumatic brain
injury (TBI) can also typically affect younger adults in the
middle of their lives.
(2) Multiple sclerosis is a chronic, often disabling
disease that attacks the central nervous system with symptoms
ranging from numbness in limbs to paralysis and loss of vision.
Most people with MS are diagnosed between the ages of 20 and 50
years of age. MS is a leading cause of disability in young
adults. Persons living with MS who experience more severe forms
of the disease are likely to require either home care or
nursing home placement, though the vast majority would prefer
to remain at home to receive the care they need. Where home
care is concerned, approximately 80 percent of such care is
provided by unpaid caregivers who are generally family members.
(3) Parkinson's disease is a chronic, progressive
neurological disease. The four primary symptoms of Parkinson's
disease are tremor, or trembling in hands, arms, legs, jaw, and
face; rigidity, or stiffness of the limbs and trunk;
bradykinesia, or slowness of movement; and postural
instability, or impaired balance and coordination. Other
symptoms may include cognitive changes; difficulty in
swallowing, chewing, and speaking; urinary problems or
constipation; skin problems; and sleep disruptions. As these
symptoms become more pronounced, patients may have difficulty
walking, talking, or completing other simple tasks. It is
estimated that nearly 500,000 to 1,500,000 people live with
Parkinson's and of those 5 to 10 percent are diagnosed younger
than 60 and deemed ''early-onset''.
(4) Traumatic brain injury is a neurological condition that
typically results from a blow or jolt to the head or a
penetrating head injury and that can impact one or more parts
of the brain, thereby temporarily or permanently disrupting
normal brain function. The Centers for Disease Control and
Prevention estimates that 1,700,000 TBIs occur annually,
resulting in disabilities affecting up to 90,000 people among a
broad range of age groups. Traumatic brain injury is also a
serious issue that affects military servicemembers. Estimates
in prior military conflicts indicate that TBI was present in
14-20 percent of surviving casualties.
(5) Family caregivers are a crucial source of support and
assistance for individuals suffering with disabilities. Family
caregivers, the majority of whom are women, provide an
estimated $470,000,000,000 in ''free'' services annually. The
supply of family caregivers is unlikely to keep pace with
future demand. The caregiver support ratio of potential
caregivers aged 45 to 64 for each person aged 80 and older, for
instance, is 7 to 1 in 2010, 4 to 1 in 2030, and 3 to 1 in
2050.
(6) The majority of family caregivers (or 53 percent) are
caring for someone ages 18 to 74. Forty-seven percent of family
caregivers are caring for someone 75 or older.
(7) Adult day programs can offer services, including
medical care, rehabilitation therapies, dignified assistance
with the activities of daily living, nutrition therapy, health
monitoring, social interaction, stimulating activities, and
transportation to seniors, people with disabilities, and
younger adults with chronic diseases.
(8) Adult day programs geared toward people living with
neurological diseases or conditions such as MS, Parkinson's
disease, TBI, or other similar diseases or conditions provide
an important response to the needs of people living with these
conditions and their family caregivers. Adult day programs can
help to ameliorate symptoms, reduce dependency, provide
important socialization opportunities, and maintain quality of
life.
(9) Adult day programs have been shown to provide a range
of documented benefits including improvements in functional
status, social support, and reductions in fatigue, depression
and pain. Adult day programs also reduce ongoing medical care
and hospital costs and decrease admissions to nursing home
facilities, which can be costly for many families, by allowing
individuals to receive health and social services while
continuing to live at home.
(10) There are currently few adult day programs focused on
younger adult populations in the United States. Although young
people living with neurological diseases or conditions may be
able to access existing adult day programs, such programs are
not typically intended for younger adults living with chronic
diseases or conditions, and may not provide the appropriate
services to meet the age-related or disability status of these
individuals.

SEC. 3. ESTABLISHMENT OF ADULT DAY PROGRAMS.

(a) Survey of Existing Adult Day Programs.--
(1) In general.--Not later than 90 days after the date of
the enactment of this section, the Assistant Secretary for
Aging shall initiate a comprehensive survey of current adult
day programs that provide care and support to individuals
including young adults living with neurological diseases or
conditions such as multiple sclerosis, Parkinson's disease,
traumatic brain injury, or any similar disease or condition.
(2) Survey elements.--In carrying out the survey under
paragraph (1), the Assistant Secretary for Aging may utilize
existing publicly available research on adult day programs, and
shall--
(A) identify ongoing successful adult day programs,
including by providing a brief description of how such
programs were initially established and funded;
(B) identify which adult day programs are serving
young adults living with neurological diseases or
conditions;
(C) develop a set of best practices to help guide
the establishment and replication of additional
successful adult day programs, including--
(i) program guidelines;
(ii) recommendations on the scope of
services that should be provided to individuals
with neurological diseases or conditions
including young adults (which may include
rehabilitation therapy, psychosocial support,
social stimulation and interaction, and
spiritual, educational, or other such
services); and
(iii) performance goals and indicators to
measure and analyze the outcomes generated by
the services provided and to evaluate the
overall success of the program; and
(D) evaluate the extent to which the Administration
for Community Living supports adult day programs,
either directly or indirectly, through current Federal
grant programs.
(3) Report.--Not later than 180 days after initiating the
survey under paragraph (1), the Assistant Secretary for Aging
shall produce and make publicly available a summary report on
the results of the survey. Such report shall include each of
the elements described in paragraph (2).
(b) Establishment of Grant Program.--
(1) In general.--Not later than 90 days after producing the
report required by subsection (a)(3), the Assistant Secretary
for Aging shall establish within the Administration for
Community Living a competitive grant program for awarding
grants annually to eligible entities, based on the best
practices developed under subsection (a), to fund adult day
programs serving younger people with neurological diseases or
conditions.
(2) Eligible entities.--In order to be eligible for a grant
under this subsection, an entity shall demonstrate the
following:
(A) Understanding of the special needs of younger
people living with neurological diseases or conditions
such as multiple sclerosis, Parkinson's disease,
traumatic brain injury, or other similar diseases or
conditions, including their functional abilities and
the potential complications across all types of cases
and stages of such diseases or conditions.
(B) Understanding of the issues experienced by
family caregivers who assist a family member with
neurological diseases or conditions such as multiple
sclerosis, Parkinson's disease, traumatic brain injury,
or other similar diseases or conditions.
(C) A capacity to provide the services recommended
by the best practices developed under subsection (a).
(3) Additional selection requirement.--The Assistant
Secretary for Aging shall not award a grant to an entity under
this subsection if the amount of the award would constitute
more than 40 percent of the operating budget of the entity in
the fiscal year for which funds for the grant are authorized to
be expended. For purposes of this subsection, the fair market
value of annual in-kind contributions of equipment or services
shall be considered as part of the operating budget of the
entity.
(4) Selection of grant recipients.--Not later than 90 days
after establishing the grant program under this subsection, the
Assistant Secretary for Aging shall award the first annual
series of grants under the program. In awarding grants under
this subsection, the Assistant Secretary should ensure, to the
extent practicable, a diverse geographic representation among
grant recipients and that, subject to the availability of
appropriations--
(A) a minimum of 5 entities are selected as grant
recipients for the first fiscal year for which such
grants are awarded;
(B) a minimum of 10 entities are selected as grant
recipients for the second such fiscal year;
(C) a minimum of 12 entities are selected as grant
recipients for the third such fiscal year; and
(D) a minimum of 15 entities are selected as grant
recipients for the fourth such fiscal year.
(5) Report.--No later than 1 year after the initial award
of grants under this subsection, and annually thereafter, the
Assistant Secretary for Aging shall produce and make publicly
available a brief summary report on the grant program under
this section. Each such report shall include the following:
(A) A description of the adult day programs
receiving funding under this section, including the
amount of Federal funding awarded and the expected
outcomes of each program.
(B) A description of performance goals and
indicators to monitor the progress of grant recipients
in--
(i) responding to the needs of younger
individuals living with neurological diseases
or conditions such as multiple sclerosis,
Parkinson's disease, traumatic brain injury, or
other similar diseases or conditions; and
(ii) assisting the family caregivers of
such individuals.
(C) Any plans for improving oversight and
management of the grant program.
(c) Definitions.--In this Act:
(1) The term ''adult day program'' means a program that
provides comprehensive and effective care and support services
to individuals living with neurological diseases or conditions
such as multiple sclerosis, Parkinson's disease, traumatic
brain injury, or other similar diseases or conditions that may
result in a functional or degenerative disability and to their
family caregivers and that may assist participants in ways
that--
(A) maintain or improve their functional abilities,
or otherwise help them adjust to their changing
functional abilities;
(B) prevent the onset of complications associated
with severe forms of the disease or condition;
(C) promote alternatives to placement in nursing
homes;
(D) reduce the strain on family caregivers taking
care of a family member living with such diseases or
conditions;
(E) focus on supporting the emotional, social, and
intellectual needs of a younger adult population; or
(F) address the needs of veterans living with such
diseases or conditions.
(2) The term ''family caregiver'' means a family member or
foster parent who provides unpaid assistance (which may include
in-home monitoring, management, supervision, care and
treatment, or other similar assistance) to another adult family
member with a special need.
(d) Authorization of Appropriations.--To carry out this section, in
addition to amounts otherwise made available for such purpose, there
are authorized to be appropriated, and to remain available until
expended, the following:
(1) $1,000,000 for fiscal year 2017.
(2) $3,000,000 for fiscal year 2018.
(3) $6,000,000 for fiscal year 2019.
(4) $8,000,000 for fiscal year 2020.
(5) $10,000,000 for fiscal year 2021.

Output: Adult Day Center Enhancement Act This bill requires the Administration on Aging (AOA) to initiate a comprehensive survey of current adult day programs that provide care and support to individuals with neurological diseases or conditions such as multiple sclerosis, Parkinson's disease, or traumatic brain injury. The AOA must identify ongoing successful adult day programs and which of these serve young adults with neurological conditions and develop best practices to guide the establishment of additional successful adult day programs. The AOA must award grants for adult day programs that serve younger people with neurological conditions. An "adult day program" is defined as a program that provides comprehensive care and support services to individuals with neurological conditions and to their family caregivers and that may assist participants in ways that: maintain or improve their functional abilities or otherwise help them adjust to their changing functional abilities; prevent the onset of complications associated with severe forms of the condition; promote alternatives to placement in nursing homes; reduce the strain on family caregivers of individuals with neurological conditions; focus on supporting the emotional, social, and intellectual needs of a younger adult population; or address the needs of veterans with neurological conditions.

Input: Consider Input: SECTION 1. SHORT TITLE.
This Act may be cited as the ''Johnson-O'Malley Supplemental Indian
Education Program Modernization Act''.
SEC. 2. INDIAN EDUCATION PROGRAM STUDENT COUNT UPDATE.
The Act of April 16, 1934 (25 U.S.C. 5342 et seq.) (commonly
referred to as the Johnson-O'Malley Act) is amended by adding at the
end the following:
''SEC. 7. COMPUTATION OF STUDENT COUNT.
''(a) Definitions.--For the purposes of this Act, the following
definitions apply:
''(1) Contracting party.--The term 'contracting party' means an
entity that has a contract through a program authorized under this
Act.
''(2) Eligible entity.--The term 'eligible entity' means an
entity that is eligible to apply for a contract for a supplemental
or operational support program under this Act, as outlined in
section 1.
''(3) Existing contracting party.--The term 'existing
contracting party' means a contracting party that has a contract
under this Act that is in effect on the date of enactment of the
JOM Modernization Act.
''(4) JOM modernization act.--The term 'JOM Modernization Act'
means the Johnson-O'Malley Supplemental Indian Education Program
Modernization Act.
''(5) New contracting party.--The term 'new contracting party'
means an entity that enters into a contract under this Act after
the date of enactment of the JOM Modernization Act.
''(6) Secretary.--The term 'Secretary' means the Secretary of
the Interior.
''(b) Determination of the Number of Eligible Indian Students.--
''(1) Initial determinations.--
''(A) In general.--The Secretary shall make an initial
determination of the number of eligible Indian students served
or potentially served by each eligible entity in accordance
with subparagraph (B).
''(B) Process for making the initial determination.--
''(i) Preliminary report.--Not later than 180 days
after the date of enactment of the JOM Modernization Act,
the Secretary shall publish a preliminary report describing
the number of eligible Indian students served or
potentially served by each eligible entity, using the most
applicable and accurate data (as determined by the
Secretary in consultation with eligible entities) from the
fiscal year preceding the fiscal year for which the initial
determination is to be made from--

''(I) the Bureau of the Census;
''(II) the National Center for Education
Statistics; or
''(III) the Office of Indian Education of the
Department of Education.

''(ii) Data reconciliation.--To improve the accuracy of
the preliminary report described in clause (i) prior to
publishing, the Secretary shall reconcile the data
described in the preliminary report with--

''(I) each existing contracting party's data
regarding the number of eligible Indian students served
by the existing contracting party for the fiscal year
preceding the fiscal year for which the initial
determination is made; and
''(II) identifiable tribal enrollment information.

''(iii) Comment period.--After publishing the
preliminary report under clause (i) in accordance with
clause (ii), the Secretary shall establish a 60-day comment
period to gain feedback about the preliminary report from
eligible entities, which the Secretary shall take into
consideration in preparing the final report described in
clause (iv).
''(iv) Final report.--Not later than 120 days after
concluding the consultation described in clause (iii), the
Secretary shall publish a final report on the initial
determination of the number of eligible Indian students
served or potentially served by each eligible entity,
including justification for not including any feedback
gained during such consultation, if applicable.
''(2) Subsequent academic years.--For each academic year
following the fiscal year for which an initial determination is
made under paragraph (1) to determine the number of eligible Indian
students served or potentially served by a contracting party, the
Secretary shall determine the number of eligible Indian students
served by the contracting party based on the reported eligible
Indian student count numbers identified through the reporting
process described in subsection (c).
''(c) Contracting Party Student Count Reporting Compliance.--
''(1) In general.--For each academic year following the fiscal
year for which an initial determination is made under subsection
(b) to determine the number of eligible Indian students served or
potentially served by a contracting party, the contracting party
shall submit to the Secretary a report describing the number of
eligible Indian students who were served using amounts allocated to
such party under this Act during the previous fiscal year. The
report shall also include an accounting of the amounts and purposes
for which the contract funds were expended.
''(2) Failure to comply.--A contracting party that fails to
submit a report under paragraph (1) shall receive no amounts under
this Act for the fiscal year following the academic year for which
the report should have been submitted.
''(3) Notice.--The Secretary shall provide contracting parties
with timely information relating to--
''(A) initial and final reporting deadlines; and
''(B) the consequences of failure to comply outlined in
paragraph (2).
''(4) Technical assistance.--The Secretary, acting through the
Director of the Bureau of Indian Education, shall provide technical
assistance and training on compliance with the reporting
requirements of this subsection to contracting parties.
''(d) Annual Report.--
''(1) In general.--The Secretary shall prepare an annual
report, including the most recent determination of the number of
eligible Indian students served by each contracting party,
recommendations on appropriate funding levels for the program based
on such determination, and an assessment of the contracts under
this Act that the Secretary--
''(A) may include in the budget request of the Department
of the Interior for each fiscal year;
''(B) shall submit to--
''(i) the Committee on Indian Affairs of the Senate;
''(ii) the Subcommittee on Interior, Environment, and
Related Agencies of the Committee on Appropriations of the
Senate;
''(iii) the Committee on Education and the Workforce of
the House of Representatives; and
''(iv) the Subcommittee on Interior, Environment, and
Related Agencies of the Committee on Appropriations of the
House of Representatives; and
''(C) shall make publicly available.
''(2) Manner of preparation.--The Secretary shall prepare the
report under paragraph (1) in a manner so as to prevent or minimize
new administrative burdens on contracting parties receiving funds
under this Act.
''(e) Hold Harmless.--
''(1) Initial hold harmless.--
''(A) In general.--Except as provided under subparagraph
(B) and subject to subparagraphs (C) and (D), for a fiscal
year, an existing contracting party shall not receive an amount
under this Act that is less than the amount that such existing
contracting party received under this Act for the fiscal year
preceding the date of enactment of the JOM Modernization Act.
''(B) Exceptions.--
''(i) In general.--An existing contracting party shall
receive an amount under this Act for a fiscal year that is
less than the amount that the existing contracting party
received under this Act for the fiscal year preceding the
date of enactment of the JOM Modernization Act, if one or
more of the following conditions is met:

''(I) Failure to report.--The existing contracting
party failed to submit a complete report described in
subsection (c) that was most recently due from the date
of the determination.
''(II) Violations of contract or law.--The
Secretary has found that the existing contracting party
has violated the terms of a contract entered into under
this Act or has otherwise violated Federal law.
''(III) Student count decrease.--The number of
eligible Indian students reported by such existing
contracting party under subsection (c) has decreased
below the number of eligible Indian students served by
the existing contracting party in the fiscal year
preceding the date of enactment of the JOM
Modernization Act.

''(ii) Amount of funding reduction for existing
contracting parties reporting decreased student counts.--A
reduction in an amount pursuant to clause (i)(III) shall
not be done in such a manner that the existing contracting
party receives an amount of funding per eligible Indian
student that is less than the amount of funding per
eligible Indian student such party received for the fiscal
year preceding the date of enactment of the JOM
Modernization Act.
''(C) Ratable reductions in appropriations.--If the funds
available under this Act for a fiscal year are insufficient to
pay the full amounts that all existing contracting parties are
eligible to receive under subparagraph (A) for the fiscal year,
the Secretary shall ratably reduce those amounts for the fiscal
year.
''(D) Sunset.--This paragraph shall cease to be effective 4
years after the date of enactment of the JOM Modernization Act.
''(2) Maximum decrease after 4 years.--Beginning 4 years after
the date of enactment of the JOM Modernization Act, no contracting
party shall receive for a fiscal year more than a 10 percent
decrease in funding per eligible Indian student from the previous
fiscal year.
''(f) Funding Allocation and Reform.--
''(1) Funding reform.--The Secretary may make recommendations
for legislation to increase the amount of funds available per
eligible Indian student through contracts under this Act to equal
to or greater than the amount of funds that were available per
eligible Indian student through contracts under this Act for fiscal
year 1995, and attempt to identify additional sources of funding
that do not reallocate existing funds otherwise utilized by Indian
students served--
''(A) by the Bureau of Indian Education; or
''(B) under title VI of the Elementary and Secondary
Education Act of 1965 (20 U.S.C. 7401 et seq.).
''(2) Increases in program funding.--
''(A) In general.--Subject to subsection (e) and
subparagraph (B), for any fiscal year for which the amount
appropriated to carry out this Act exceeds the amount
appropriated to carry out this Act for the preceding fiscal
year, the excess amounts shall--
''(i) be allocated only to those contracting parties
that did not receive their full per student funding
allocation for the previous fiscal year; and
''(ii) be allocated first to new contracting parties
that did not receive their full per student funding
allocation for the previous fiscal year.
''(B) Parity in funding.--Subparagraph (A) shall have no
effect after the first fiscal year for which each contracting
party receives their full per student funding allocation.
''(g) Increased Geographical and Tribal Participation in the
Johnson-O'Malley Supplementary Education Program.--To the maximum
extent practicable, the Secretary shall consult with Indian tribes and
contact State educational agencies, local educational agencies, and
Alaska Native organizations that have not previously entered into a
contract under this Act--
''(1) to determine the interest of the Indian tribes, State
educational agencies, local educational agencies, and Alaska Native
organizations, in entering into such contracts; and
''(2) to share information relating to the process for entering
into a contract under this Act.
''(h) Rulemaking.--
''(1) In general.--Not later than 1 year after the date of
enactment of the JOM Modernization Act, the Secretary, acting
through the Director of the Bureau of Indian Education, shall
undertake and complete a rulemaking process, following the
provisions of subchapter II of chapter 5 of title 5, United States
Code, to--
''(A) determine how the regulatory definition of 'eligible
Indian student' may be revised to clarify eligibility
requirements for contracting parties under this Act;
''(B) determine, as necessary, how the funding formula
described in section 273.31 of title 25, Code of Federal
Regulations (as in effect on the day before the date of
enactment of the JOM Modernization Act) may be clarified and
revised to ensure full participation of contracting parties and
provide clarity on the funding process under this Act; and
''(C) otherwise reconcile and modernize the rules to
comport with the activities of the contracting parties under
this Act as of the date of enactment of the JOM Modernization
Act.
''(2) Report.--Not later than 30 days after the date the
rulemaking under paragraph (1) is complete, the Secretary shall
submit a report to Congress describing the results of such
rulemaking and necessary recommendations to ensure the full
implementation of such rulemaking.
''(i) Student Privacy.--The Secretary shall ensure that data is
collected and each report is prepared under this section in a manner
that protects the rights of eligible Indian students in accordance with
section 444 of the General Education Provisions Act (commonly referred
to as the Family Educational Rights and Privacy Act of 1974) (20 U.S.C.
1232g).
''(j) GAO Report.--Not later than 18 months after the final report
described in subsection (b)(1)(B)(iv) is published, the Comptroller
General shall--
''(1) conduct a review of the implementation of this section
during the preceding 2-year period, including any factors
impacting--
''(A) the accuracy of the determinations of the number of
eligible Indian students under this section;
''(B) the communication between the Bureau of Indian
Education and contracting parties; and
''(C) the efforts by the Bureau of Indian Education to
ensure accurate and sufficient distribution of funding for
Indian students;
''(2) submit a report describing the results of the review
under paragraph (1) to--
''(A) the Committee on Indian Affairs of the Senate;
''(B) the Subcommittee on Interior, Environment, and
Related Agencies of the Committee on Appropriations of the
Senate;
''(C) the Subcommittee on Indian, Insular and Alaska Native
Affairs of the Committee on Natural Resources of the House of
Representatives; and
''(D) the Subcommittee on Interior, Environment, and
Related Agencies of the Committee on Appropriations of the
House of Representatives; and
''(3) make such report publicly available.
''(k) Effect.--Nothing in this section--
''(1) creates a new program or duplicates program activities
under this Act; or
''(2) replaces or diminishes the effect of regulations to carry
out this Act existing on the day before the date of enactment of
the JOM Modernization Act, unless expressly provided in this
section.''.

Speaker of the House of Representatives.

Vice President of the United States and
President of the Senate.

Output: Johnson-O'Malley Supplemental Indian Education Program Modernization Act This bill requires the Department of the Interior to annually update the count of Indian students eligible for the Johnson-O'Malley Program (JOM Program). The JOM Program awards contracts to tribal organizations, schools, states, and others to support the cultural and academic needs of Indian students. The contract amounts are based on the number of students served. Contracting parties must annually report to Interior on the number of students they serve. If they fail to submit the report, then Interior may not give them program funds for the next fiscal year. The bill sets forth a process to revise funding allocations provided under the program. Interior must consult with Indian tribes and state and local education agencies that have not participated in the program to determine their interest in entering into contracts. The Bureau of Indian Education must determine how: (1) the regulatory definition of eligible student may be clarified for contracting parties, and (2) the program funding formula may be updated to ensure the full participation of contracting parties and provide clarity on the funding process.

Input: Consider Input: SECTION 1. EXTENSION AND MODIFICATION OF RESEARCH CREDIT.

(a) Extension.--Subsection (h) of section 41 of the Internal
Revenue Code of 1986 (relating to credit for research activities) is
amended--
(1) by striking ''June 30, 1995'' each place it appears and
inserting ''December 31, 1997'', and
(2) by striking ''July 1, 1995'' each place it appears and
inserting ''January 1, 1998''.
(b) Base Amount for Start-up Companies.--Clause (i) of section
41(c)(3)(B) of such Code (relating to start-up companies) is amended to
read as follows:
''(i) Taxpayers to which subparagraph
applies.--The fixed-base percentage shall be
determined under this subparagraph if--
''(I) the first taxable year in
which a taxpayer had both gross
receipts and qualified research
expenses begins after December 31,
1983, or
''(II) there are fewer than 3
taxable years beginning after December
31, 1983, and before January 1, 1989,
in which the taxpayer had both gross
receipts and qualified research
expenses.''.
(c) Election of Alternative Incremental Credit.--Subsection (c) of
section 41 of such Code is amended by redesignating paragraphs (4) and
(5) as paragraphs (5) and (6), respectively, and by inserting after
paragraph (3) the following new paragraph:
''(4) Election of alternative incremental credit.--
''(A) In general.--At the election of the taxpayer,
the credit determined under subsection (a)(1) shall be
equal to the sum of--
''(i) 1.65 percent of so much of the
qualified research expenses for the taxable
year as exceeds 1 percent of the average
described in subsection (c)(1)(B) but does not
exceed 1.5 percent of such average,
''(ii) 2.2 percent of so much of such
expenses as exceeds 1.5 percent of such average
but does not exceed 2 percent of such average,
and
''(iii) 2.75 percent of so much of such
expenses as exceeds 2 percent of such average.
''(B) Election.--An election under this paragraph
may be made only for the first taxable year of the
taxpayer beginning after June 30, 1995. Such an
election shall apply to the taxable year for which made
and all succeeding taxable years unless revoked with
the consent of the Secretary.''
(d) Increased Credit for Contract Research Expenses With Respect to
Certain Research Consortia.--Paragraph (3) of section 41(b) of such
Code is amended by adding at the end the following new subparagraph:
''(C) Amounts paid to certain research consortia.--
''(i) In general.--Subparagraph (A) shall
be applied by substituting '80 percent' for '65
percent' with respect to amounts paid or
incurred by the taxpayer to a qualified
research consortium for qualified research.
''(ii) Qualified research consortium.--The
term 'qualified research consortium' means any
organization described in subsection (e)(6)(B)
if--
''(I) at least 15 unrelated
taxpayers paid (during the calendar
year in which the taxable year of the
taxpayer begins) amounts to such
organization for qualified research,
''(II) no 3 persons paid during
such calendar year more than 50 percent
of the total amounts paid during such
calendar year for qualified research,
and
''(III) no person contributed more
than 20 percent of such total amounts.
For purposes of subclause (I), all persons
treated as a single employer under subsection
(a) or (b) of section 52 shall be treated as
related taxpayers.''
(e) Conforming Amendment.--Subparagraph (D) of section 28(b)(1) of
such Code is amended by striking ''June 30, 1995'' and inserting
''December 31, 1997''.
(f) Effective Date.--
(1) In general.--Except as provided in paragraph (2), the
amendments made by this section shall apply to taxable years
ending after June 30, 1995.
(2) Subsections (c) and (d).--The amendments made by
subsections (c) and (d) shall apply to taxable years beginning
after June 30, 1995.
Output: Amends the Internal Revenue Code to extend through December 31, 1997, the credit for increasing research activities. Modifies the fixed-base percentage for start-up companies.
Allows an individual to elect an alternative incremental credit. Makes the election of such credit applicable to the taxable year in which the election is made and for all succeeding taxable years, unless it is revoked with the consent of the Secretary of the Treasury.
Increases from 65 percent to 80 percent the amount for contract research expenses with respect to amounts paid or incurred by the taxpayer to qualified research consortia for qualified research.