A bill to amend the Internal Revenue Code of 1986 with respect to the allocation of research and experimental expenditures.

Amends the Internal Revenue Code to require deductions for research and experimental expenditures to be allocated to income from sources within the United States.

Repeals a provision of the Tax Reform Act of 1986 which establishes a one-year requirement that 50 percent of such expenditures be allocated to U.S. income and the remainder on the basis of gross sales or gross income.