,i  #aac? ,,congress  #a/ ,session  ,h4 
,r4 #cecg  ,,9 ,,! ,,h\se ,,(           
,,repres5tatives  ,novemb] #ai1         
#bjac,ms4 ,edw>ds 7= h]self1 ,ms4       
,norton1 ,mr4 ,cumm+s1 ,ms4 ,tsongas1   
,mr4 ,cicill9e1 ,mr4 ,wel*1 & ,mr4      
,holt7 introduc$ ! foll[+ bill2 :i* 0   
ref]r$ to ! ,committee on ,ways & ,means
  ,a ,,bill  ,to am5d ! ,int]nal ,rev5ue
 ,code ( #aihf to make p]man5t ! cr$it =
 increas+ rese>* activities1 to increase
 su* cr$it = am\nts paid or incurr$ =   
qualifi$ rese>* occurr+ 9 ! ,unit$      
,/ates1 & to increase ! dome/ic         
production activities d$uction = !      
manufacture ( prop]ty sub/antially all (
 ! rese>* & developm5t ( :i* occurr$ 9 !
 ,unit$ ,/ates4  #a4 ,%ort title ,?is   
,act may be cit$ z ! #ba/ ,c5tury       
,inve/m5t ,act ( #bjac4  #b4 ,rese>*    
cr$it made p]man5t  7a7 ,9 g5]al        
,section #da ( ! ,int]nal ,rev5ue ,code 
( #aihf is am5d$ by /rik+ subsection    
7h74  7b7 ,con=m+ am5dm5ts  7#a7        
,section #da7;c7 ( su* ,code is am5d$ by

 /rik+ p>agraph 7#d74  7#b7 ,p>agraph   
7#a7 ( section #de;,c7b7 ( su* ,code is 
am5d$ by /rik+ subp>agraph 7,d74  7c7   
,effective date ,! am5dm5ts made by ?is 
subsection %all apply to am\nts paid or 
incurr$ aft] ,decemb] #ca1 #bjac4  #c4  
,increase 9 rese>* cr$it = contract$    
rese>* ) ,unit$ ,/ates bus9esses  7a7 ,9
 g5]al ,section #da ( ! ,int]nal ,rev5ue
 ,code ( #aihf1 z am5d$ by section #b ( 
?is ,act1 is am5d$ by ins]t+ aft]       
subsection 7g7 ! foll[+ new subsection3 
7h7 ,special rule = contract$ rese>* )  
,unit$ ,/ates manufactur+ bus9ess  7#a7 
,9 g5]al ,if ! taxpay] elects !         
application ( ?is subsection1 subsection
 7a77#a7 %all be appli$ by sub/itut+ #be
 p]c5t = #bj p]c5t ) respect to qualifi$
 ,unit$ ,/ates rese>* exp5ses4  7#b7    
,qualifi$ ,unit$ ,/ates rese>* exp5ses  
,= purposes ( ?is subsection1 ! t]m     
qualifi$ ,unit$ ,/ates rese>* exp5ses   
means any am\nt paid or incurr$ by !    
taxpay] to any p]son 7o!r ?an an        
employee ( ! taxpay]7 = qualifi$ rese>*1

 sub/antially all ( :i* occurs 9 !      
,unit$ ,/ates4  7#c7 ,sep>ate           
application ( section ,9 ! case ( any   
election ( ! application ( ?is          
subsection1 ?is section %all be appli$  
sep>ately ) respect qualifi$ ,unit$     
,/ates rese>* exp5ses4  4  7b7          
,effective date ,! am5dm5ts made by ?is 
section %all apply to am\nts paid or    
incurr$ = taxable ye>s beg9n+ aft] !    
date ( ! enactm5t ( ?is ,act4  #d4      
,increase 9 dome/ic production          
activities d$uction = manufactur$       
prop]ty rese>*$ & develop$ 9 ,unit$     
,/ates  7a7 ,9 g5]al ,subsection 7d7 (  
section #aii ( ! ,int]nal ,rev5ue ,code 
( #aihf is am5d$ by r$esignat+ p>agraph 
7#aj7 z p>agraph 7#aa7 & by ins]t+ aft] 
p>agraph 7#i7 ! foll[+ new p>agraph3    
7#aj7 ,special rule = c]ta9 manufactur+ 
7,a7 ,9 g5]al ,9 ! case qualifi$        
production activities income            
attributable to ! manufacture or        
production ( qualify+ production prop]ty
 sub/antially all ( ! rese>* &          

developm5t ( :i* occurr$ 9 ! ,unit$     
,/ates1 subsection 7a7 %all be appli$ by
 sub/itut+ #ae p]c5t = #i p]c5t4  7,b7  
,special rule :5 taxable income us$ to  
det]m9e d$uction ,9 ! case ( any taxable
 ye> = :i* ! taxpay]'s qualifi$         
production activities income exce$s !   
taxpay]'s taxable income 7det]m9$ )\t   
reg>d to ?is section71 ! am\nt ( taxable
 income to :i* ! #ae p]c5t am\nt 9      
subp>agraph 7,a7 applies "u subsection  
7a77#a7 %all be an am\nt equal to !     
am\nt :i* be>s ! same ratio to su*      
taxable income 7z s det]m9$7 z-- 7i7 !  
am\nt ( qualifi$ production activities  
income ( ! taxpay] = ! taxable ye> :i*  
is attributable to ! manufacture or     
production ( qualify+ production prop]ty
 sub/antially all ( ! rese>* &          
developm5t ) respect to :i* occurr$ 9 ! 
,unit$ ,/ates1 be>s to  7ii7 all        
qualifi$ production activities income ( 
! taxpay] = ! taxable ye>4  7,c7        
,t]m9ation ,?is p>agraph %all n apply to
 taxable ye>s beg9n+ aft] ,decemb] #ca1 

#bjbb4  4  7b7 ,effective date ,!       
am5dm5ts made by ?is section %all apply 
to taxable ye>s beg9n+ aft] ! date ( !  
enactm5t ( ?is ,act4