To amend the Internal Revenue Code of 1986 to permit taxpayers to elect a nonincremental credit for 5 percent of their aerospace-related research expenditures in lieu of the incremental research credit.

Amends the Internal Revenue Code to permit taxpayers to elect a nonincremental credit for five percent of the qualified research expenses which are attributable to their aerospace-related business in lieu of the incremental research credit. Limits such election to the first two taxable years after enactment of this Act.