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 increase from 50 percent to 67 percent the amount of research and development expenditures that a company must allocate to income from sources within the United States. Establishes a special rule for the qualified research and experimental expenditures required by governmental entities.

Requires companies to report on a consolidated basis with respect to the expenditures associated with this source rule.