Create Jobs by Expanding the R&D Tax Credit Act of 2013

Create Jobs by Expanding the R&D Tax Credit Act of 2013 - Amends the Internal Revenue Code to: (1) increase the rate of the tax credit for increasing research activities in 2013 and 2014, (2) extend such tax credit through 2014, and (3) allow certain small business concerns to assign research tax credit amounts in 2013 and 2014.

[Congressional Bills 113th Congress]
[From the U.S. Government Publishing Office]
[H.R. 120 Introduced in House (IH)]

113th CONGRESS
  1st Session
                                H. R. 120

 To amend the Internal Revenue Code of 1986 to increase the credit for 
   research expenses for 2013 and 2014 and to allow the credit to be 
                               assigned.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            January 3, 2013

   Mr. Holt introduced the following bill; which was referred to the 
                      Committee on Ways and Means

_______________________________________________________________________

                                 A BILL


 
 To amend the Internal Revenue Code of 1986 to increase the credit for 
   research expenses for 2013 and 2014 and to allow the credit to be 
                               assigned.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Create Jobs by Expanding the R&D Tax 
Credit Act of 2013''.

SEC. 2. INCREASE IN RESEARCH EXPENSES TAKEN INTO ACCOUNT FOR THE 
              RESEARCH CREDIT.

    (a) In General.--Section 41 of the Internal Revenue Code of 1986 is 
amended by redesignating subsection (h) as subsection (i) and by 
inserting after subsection (g) the following new subsection:
    ``(h) Temporary Bonus for Qualifying Research Expenses.--In the 
case of any taxable year beginning in 2013 or 2014--
            ``(1) subsection (a)(1) shall be applied by substituting 
        `30 percent' for `20 percent',
            ``(2) subsection (c)(5)(A) shall be applied by substituting 
        `20 percent' for `14 percent', and
            ``(3) subsection (c)(5)(B)(ii) shall be applied by 
        substituting `12 percent' for `6 percent'.''.
    (b) Extension of Credit.--Subparagraph (B) of section 41(i)(1) of 
such Code, as redesignated by subsection (a), is amended by striking 
``December 31, 2011'' and inserting ``December 31, 2014''.
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2012.

SEC. 3. TRANSFERABILITY OF RESEARCH CREDIT.

    (a) In General.--Section 41 of the Internal Revenue Code of 1986, 
as amended by section 2, is amended by redesignating subsection (i) as 
subsection (j) and by inserting after subsection (h) the following new 
subsection:
    ``(i) Credit May Be Assigned.--
            ``(1) In general.--If, for any taxable year beginning in 
        2013 or 2014, a qualified taxpayer elects the application of 
        this subsection for such taxable year, the amount of credit 
        determined under this section for such year which would (but 
        for this subsection) be allowable to the qualified taxpayer 
        shall be allowable to the person designated by the qualified 
        taxpayer. Such amount shall be determined by applying this 
        section separately from section 38 for such year. The person so 
        designated shall be treated as the taxpayer with respect to 
        this section (other than this subsection) for purposes of this 
        title (other than this paragraph).
            ``(2) Treatment of amounts paid for assignment.--If any 
        amount is paid to the person who assigns the credit determined 
        under this section, no portion of such amount shall be 
        includible in such person's gross income.
            ``(3) Qualified taxpayer.--The term `qualified taxpayer' 
        means, with respect to any taxable year, any small business 
        concern (as defined in section 3 of the Small Business Act) if 
        such concern employs an average of fewer than 500 employees on 
        business days during such year.''.
    (b) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2012.
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