OTT14022 S.L.C.

113

TH

CONGRESS 2

D

S

ESSION

 

S.

 ll

To amend the Internal Revenue Code of 1986 to extend and modify the research and development credit to encourage innovation.

IN THE SENATE OF THE UNITED STATES

 llllllllll

Mr. R

OBERTS

(for himself and Mr. C

OONS

) introduced the following bill;  which was read twice and referred to the Committee on

 llllllllll

A BILL

To amend the Internal Revenue Code of 1986 to extend and modify the research and development credit to en-courage innovation.

 Be it enacted by the Senate and House of Representa-

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tives of the United States of America in Congress assembled,

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SECTION 1. SHORT TITLE.

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This Act may be cited as the ‘‘Innovators Job Cre-

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ation Act’’.

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SEC. 2. PERMANENT EXTENSION.

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(a) I

N

G

ENERAL

.—Section 41 of the Internal Rev-

7

enue Code of 1986 is amended by striking subsection (h)

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and inserting the following:

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OTT14022 S.L.C.

‘‘(h) T

ERMINATION OF

 A 

LTERNATIVE

I

NCREMENTAL

 

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C

REDIT

.—No election under subsection (c)(4) shall apply

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to taxable years beginning after December 31, 2008.’’.

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(b) E

FFECTIVE

D

 ATE

.—The amendment made by

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this section shall apply to amounts paid or incurred after

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December 31, 2013.

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SEC. 3. CREDIT ALLOWED AGAINST ALTERNATIVE MIN-

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IMUM TAX.

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Subparagraph (B) of section 38(c)(4) of the Internal

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Revenue Code of 1986 is amended—

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(1) by redesignating clauses (ii), (iii), (iv), (v),

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(vi), (vii), (viii), and (ix) as clauses (iii), (iv), (v),

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(vi), (vii), (viii), (ix), and (x), respectively, and

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(2) by inserting after clause (i) the following

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new clause:

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‘‘(ii) the credit determined under sec-

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tion 41 to the extent attributable to

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amounts paid or incurred after December

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31, 2013,’’.

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SEC. 4. PERMANENT 5-YEAR CARRYBACK FOR RESEARCH

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CREDITS OF SMALL BUSINESSES.

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(a) I

N

G

ENERAL

.—Paragraph (4) of section 39(a) of

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the Internal Revenue Code of 1986 is amended to read

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as follows:

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3

OTT14022 S.L.C.

‘‘(4) 5-

 YEAR CARRYBACK FOR RESEARCH CRED

-

1

ITS OF SMALL BUSINESSES

.—Notwithstanding sub-

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section (d), in the case of credits determined under

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section 41 with respect to an eligible small business

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(as defined in section 38(c)(5)(C)) in taxable years

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 beginning after December 31, 2013—

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‘‘(A) paragraph (1) shall be applied by

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substituting ‘each of the 5 taxable years’ for

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‘the taxable year’ in subparagraph (A) thereof,

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and

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‘‘(B) paragraph (2) shall be applied—

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‘‘(i) by substituting ‘25 taxable years’

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for ‘21 taxable years’ in subparagraph (A)

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thereof, and

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‘‘(ii) by substituting ‘24 taxable years’

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for ‘20 taxable years’ in subparagraph (B)

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thereof.’’.

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(b) E

FFECTIVE

D

 ATE

.—The amendment made by

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this section shall apply to taxable years beginning after

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December 31, 2013.

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SEC. 5. ELECTION PERMITTED ON AMENDED RETURN.

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(a) I

N

G

ENERAL

.—Paragraph (5) of section 41(c) of

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the Internal Revenue Code of 1986 is amended by adding

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at the end the following new subparagraph:

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