,i #aacth ,,congress #b;d ,session ,h4 ,r4 #ddch ,,in ,,the ,,house ,,of ,,representatives ,april #i1 #bjad ,mr4 ,brady of ,texas 7for himself1 ,mr4 ,larson of ,connecticut1 ,mr4 ,paulsen1 ,ms4 ,eshoo1 ,mr4 ,mc,caul1 ,ms4 ,matsui1 ,mr4 ,sam ,johnson of ,texas1 ,mr4 ,neal1 and ,mr4 ,schock7 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 simplify and make permanent the research credit4 #a4 ,short title ,this ,act may be cited as the ,american ,research and ,competitiveness ,act of #bjad4 #b4 ,research credit simplified and made permanent 7a7 ,in general ,subsection 7a7 of section #da of the ,internal ,revenue ,code of #aihf is amended to read as follows3 7a7 ,in general ,for purposes of section #ch1 the research credit determined under this section for the taxable year shall be an amount equal to the sum of-- 7#a7 #bj percent of so much of the qualified research expenses for the taxable year as exceeds #ej percent of the average qualified research expenses for the #c taxable years preceding the taxable year for which the credit is being determined1 7#b7 #bj percent of so much of the basic research payments for the taxable year as exceeds #ej percent of the average basic research payments for the #c taxable years preceding the taxable year for which the credit is being determined1 plus 7#c7 #bj percent of the amounts paid or incurred by the taxpayer in carrying on any trade or business of the taxpayer during the taxable year 7including as contributions7 to an energy research consortium for energy research4 4 7b7 ,repeal of termination ,section #da of such ,code is amended by striking subsection 7h74 7c7 ,conforming amendments 7#a7 ,subsection 7c7 of section #da of such ,code is amended to read as follows3 7c7 ,determination of average research expenses for prior years 7#a7 ,special rule in case of no qualified research expenditures in any of #c preceding taxable years ,in any case in which the taxpayer has no qualified research expenses in any one of the #c taxable years preceding the taxable year for which the credit is being determined1 the amount determined under subsection 7a77#a7 for such taxable year shall be equal to #aj percent of the qualified research expenses for the taxable year4 7#b7 ,consistent treatment of expenses 7,a7 ,in general ,notwithstanding whether the period for filing a claim for credit or refund has expired for any taxable year taken into account in determining the average qualified research expenses1 or average basic research payments1 taken into account under subsection 7a71 the qualified research expenses and basic research payments taken into account in determining such averages shall be determined on a basis consistent with the determination of qualified research expenses and basic research payments1 respectively1 for the credit year4 7,b7 ,prevention of distortions ,the ,secretary may prescribe regulations to prevent distortions in calculating a taxpayer's qualified research expenses or basic research payments caused by a change in accounting methods used by such taxpayer between the current year and a year taken into account in determining the average qualified research expenses or average basic research payments taken into account under subsection 7a74 4 7#b7 ,section #da7;e7 of such ,code is amended-- 7,a7 by striking all that precedes paragraph 7#f7 and inserting the following3 7e7 ,basic research payments ,for purposes of this section-- 7#a7 ,in general ,the term basic research payment means1 with respect to any taxable year1 any amount paid in cash during such taxable year by a corporation to any qualified organization for basic research but only if-- 7,a7 such payment is pursuant to a written agreement between such corporation and such qualified organization1 and 7,b7 such basic research is to be performed by such qualified organization4 7#b7 ,exception to requirement that research be performed by the organization ,in the case of a qualified organization described in subparagraph 7,c7 or 7,d7 of paragraph 7#c71 subparagraph 7,b7 of paragraph 7#a7 shall not apply4 1 7,b7 by redesignating paragraphs 7#f7 and 7#g7 as paragraphs 7#c7 and 7#d71 respectively1 and 7,c7 in paragraph 7#d7 as so redesignated1 by striking subparagraphs 7,b7 and 7,c7 and by redesignating subparagraphs 7,d7 and 7,e7 as subparagraphs 7,b7 and 7,c71 respectively4 7#c7 ,section #da7;f77#c7 of such ,code is amended-- 7,a7 7i7 by striking 1 and the gross receipts in subparagraph 7,a77i7 and all that follows through determined under clause 7iii71 7ii7 by striking clause 7iii7 of subparagraph 7,a7 and redesignating clauses 7iv71 7v71 and 7vi71 thereof1 as clauses 7iii71 7iv71 and 7v71 respectively1 7iii7 by striking and 7iv7 each place it appears in subparagraph 7,a77iv7 7as so redesignated7 and inserting and 7iii71 7iv7 by striking subclause 7,,iv7 of subparagraph 7,a77iv7 7as so redesignated71 by striking 1 and at the end of subparagraph 7,a77iv77,,iii7 7as so redesignated7 and inserting a period1 and by adding and at the end of subparagraph 7,a77v77,,ii7 7as so redesignated71 7v7 by striking 7,a77vi7 in subparagraph 7,b7 and inserting 7,a77v71 and 7vi7 by striking 7,a77iv77,,ii7 in subparagraph 7,b77i77,,ii7 and inserting 7,a77iii77,,ii71 7,b7 by striking 1 and the gross receipts of the predecessor1 in subparagraph 7,a77iv77,,ii7 7as so redesignated71 7,c7 by striking 1 and the gross receipts of1 in subparagraph 7,b71 7,d7 by striking 1 or gross receipts of1 in subparagraph 7,b77i77,i71 and 7,e7 by striking subparagraph 7,c74 7d7 ,effective date 7#a7 ,in general ,except as provided in paragraph 7#b71 the amendments made by this subsection shall apply to taxable years beginning after ,december #ca1 #bjac4 7#b7 ,subsection 7b7 ,the amendment made by subsection 7b7 shall apply to amounts paid or incurred after ,december #ca1 #bjac4