S 155 IS
112th CONGRESS
1st Session
S. 155
To amend the Internal Revenue Code of 1986 to provide an enhanced credit for research and development by companies that manufacture products in the United States.
IN THE SENATE OF THE UNITED STATES
January 25 (legislative day, January 5), 2011
Mr. KOHL introduced the following bill; which was read twice and referred to the Committee on Finance
A BILL
To amend the Internal Revenue Code of 1986 to provide an enhanced credit for research and development by companies that manufacture products in the United States.
Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
SEC. 2. ENHANCED RESEARCH CREDIT FOR DOMESTIC MANUFACTURERS.
(a) In General- Section 41 of the Internal Revenue Code of 1986 is amended by adding at the end the following new subsection:
‘(i) Enhanced Credit for Domestic Manufacturers-
‘(1) IN GENERAL- In the case of a qualified domestic manufacturer, this section shall be applied by increasing the following by the bonus amount:
‘(A) The 20 percent amount under subsection (a)(1).
‘(B) The 20 percent amount under subsection (a)(2).
‘(C) The 20 percent amount under subsection (a)(3).
‘(D) The 14 percent amount under subsection (c)(5)(A).
‘(2) QUALIFIED DOMESTIC MANUFACTURER- For purposes of this subsection--
‘(A) IN GENERAL- The term ‘qualified domestic manufacturer’ means a taxpayer who has domestic production gross receipts which are more than 50 percent of total production gross receipts.
‘(B) DOMESTIC PRODUCTION GROSS RECEIPTS- The term ‘domestic production gross receipts’ has the meaning given to such term under section 199(c)(4).
‘(C) TOTAL PRODUCTION GROSS RECEIPTS- The term ‘total production gross receipts’ means the gross receipts of the taxpayer which are described in section 199(c)(4), determined--
‘(i) without regard to whether property described in subparagraph (A)(i)(I) or (A)(i)(III) thereof was manufactured, produced, grown, or extracted in the United States,
‘(ii) by substituting ‘any property described in section 168(f)(3)’ for ‘any qualified film’ in subparagraph (A)(i)(II) thereof, and
‘(iii) without regard to whether any construction described in subparagraph (A)(ii) thereof or services described in subparagraph (A)(iii) thereof were performed in the United States.
‘(3) BONUS AMOUNT- For purposes of paragraph (1), the bonus amount shall be determined as follows:
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‘If the percentage of total production gross receipts which are domestic production gross receipts is: The bonus amount is:
More than 50 percent and not more than 60 percent 2 percentage points
More than 60 percent and not more than 70 percent 4 percentage points
More than 70 percent and not more than 80 percent 6 percentage points
More than 80 percent and not more than 90 percent 8 percentage points
More than 90 percent 10 percentage points.’.
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(b) Effective Date- The amendment made by this section shall apply to expenditures paid or incurred in taxable years beginning after the date of the enactment of this Act.
U.S. Congress - Text of S.155 as Introduced in Senate Domestic Jobs Innovation Bonus Act
