Definition: 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: 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.