,i  #aacth ,,congress  #ast ,session    
,h4 ,r4 #cecg  ,,in ,,the ,,house ,,of  
,,representatives  ,november #ai1       
#bjac,ms4 ,edwards 7for herself1 ,ms4   
,norton1 ,mr4 ,cummings1 ,ms4 ,tsongas1 
,mr4 ,cicilline1 ,mr4 ,welch1 and ,mr4  
,holt7 introduced the following bill2   
which was referred to the ,committee on 
,ways and ,means  ,a ,,bill  ,to amend  
the ,internal ,revenue ,code of #aihf to
 make permanent the credit for          
increasing research activities1 to      
increase such credit for amounts paid or
 incurred for qualified research        
occurring in the ,united ,states1 and to
 increase the domestic production       
activities deduction for the manufacture
 of property substantially all of the   
research and development of which       
occurred in the ,united ,states4  #a4   
,short title ,this ,act may be cited as 
the #bast ,century ,investment ,act of  
#bjac4  #b4 ,research credit made       
permanent  7a7 ,in general ,section #da 
of the ,internal ,revenue ,code of #aihf

 is amended by striking subsection 7h74 
7b7 ,conforming amendments  7#a7        
,section #da7;c7 of such ,code is       
amended by striking paragraph 7#d74     
7#b7 ,paragraph 7#a7 of section         
#de;,c7b7 of such ,code is amended by   
striking subparagraph 7,d74  7c7        
,effective date ,the amendments made by 
this subsection shall apply to amounts  
paid or incurred after ,december #ca1   
#bjac4  #c4 ,increase in research credit
 for contracted research with ,united   
,states businesses  7a7 ,in general     
,section #da of the ,internal ,revenue  
,code of #aihf1 as amended by section #b
 of this ,act1 is amended by inserting  
after subsection 7g7 the following new  
subsection3  7h7 ,special rule for      
contracted research with ,united ,states
 manufacturing business  7#a7 ,in       
general ,if the taxpayer elects the     
application of this subsection1         
subsection 7a77#a7 shall be applied by  
substituting #be percent for #bj percent
 with respect to qualified ,united      

,states research expenses4  7#b7        
,qualified ,united ,states research     
expenses ,for purposes of this          
subsection1 the term qualified ,united  
,states research expenses means any     
amount paid or incurred by the taxpayer 
to any person 7other than an employee of
 the taxpayer7 for qualified research1  
substantially all of which occurs in the
 ,united ,states4  7#c7 ,separate       
application of section ,in the case of  
any election of the application of this 
subsection1 this section shall be       
applied separately with respect         
qualified ,united ,states research      
expenses4  4  7b7 ,effective date ,the  
amendments made by this section shall   
apply to amounts paid or incurred for   
taxable years beginning after the date  
of the enactment of this ,act4  #d4     
,increase in domestic production        
activities deduction for manufactured   
property researched and developed in    
,united ,states  7a7 ,in general        
,subsection 7d7 of section #aii of the  

,internal ,revenue ,code of #aihf is    
amended by redesignating paragraph 7#aj7
 as paragraph 7#aa7 and by inserting    
after paragraph 7#i7 the following new  
paragraph3  7#aj7 ,special rule for     
certain manufacturing  7,a7 ,in general 
,in the case qualified production       
activities income attributable to the   
manufacture or production of qualifying 
production property substantially all of
 the research and development of which  
occurred in the ,united ,states1        
subsection 7a7 shall be applied by      
substituting #ae percent for #i percent4
  7,b7 ,special rule when taxable income
 used to determine deduction ,in the    
case of any taxable year for which the  
taxpayer's qualified production         
activities income exceeds the taxpayer's
 taxable income 7determined without     
regard to this section71 the amount of  
taxable income to which the #ae percent 
amount in subparagraph 7,a7 applies     
under subsection 7a77#a7 shall be an    
amount equal to the amount which bears  

the same ratio to such taxable income   
7as so determined7 as-- 7i7 the amount  
of qualified production activities      
income of the taxpayer for the taxable  
year which is attributable to the       
manufacture or production of qualifying 
production property substantially all of
 the research and development with      
respect to which occurred in the ,united
 ,states1 bears to  7ii7 all qualified  
production activities income of the     
taxpayer for the taxable year4  7,c7    
,termination ,this paragraph shall not  
apply to taxable years beginning after  
,december #ca1 #bjbb4  4  7b7 ,effective
 date ,the amendments made by this      
section shall apply to taxable years    
beginning after the date of the         
enactment of this ,act4