,i  #aaeth ,,congress  #ast ,session    
,h4 ,r4 #bhba  ,,in ,,the ,,house ,,of  
,,representatives  ,june #g1 #bjag ,mr4 
,tiberi 7for himself and ,mr4 ,larson of
 ,connecticut7 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 reform the credit for
 increasing research activities1 and for
 other purposes4  #a4 ,short title ,this
 ,act may be cited as the ,research and 
,experimentation ,advances              
,competitiveness at ,home ,act or as the
 ,,reach ,act4  #b4 ,increase of        
alternative simplified credit  7a7 ,in  
general ,subparagraph 7,a7 of section   
#da7;c77#e7 of the ,internal ,revenue   
,code of #aihf is amended by striking   
#ad percent 7#ab percent in the case of 
taxable years ending before ,january #a1
 #bjji7 and inserting #bj percent4  7b7 
,conforming amendment ,clause 7ii7 of   
section #da7;c77#e77;,b7 of the         
,internal ,revenue ,code of #aihf is    

amended by striking #f percent and      
inserting #aj percent4  7c7 ,effective  
date ,the amendments made by this       
section shall apply to taxable years    
beginning after ,december #ca1 #bjaf4   
#c4 ,allocation of research expenses    
among business components  7a7 ,in      
general ,subparagraph 7,a7 of section   
#da7;d77#b7 of the ,internal ,revenue   
,code of #aihf is amended by inserting 1
 and may be applied using a method that 
relies on reasonable estimation         
techniques in lieu of contemporaneous   
accounting to measure employee hours per
 business component before the period4  
7b7 ,effective date ,the amendment made 
by this section shall apply to taxable  
years beginning after ,december #ca1    
#bjaf4  #d4 ,inclusion of qualified     
upper-level employees in research       
expense calculation  7a7 ,in general    
,clause 7ii7 of section #da7;b77#b77;,b7
 of the ,internal ,revenue ,code of     
#aihf is amended by inserting 1 without 
regard to the employee's position or    

management level before the period4  7b7
 ,effective date ,the amendment made by 
this section shall apply to taxable     
years beginning after ,december #ca1    
#bjaf4  #e4 ,repeal of exclusion of     
adaptive research  7a7 ,in general      
,paragraph 7#d7 of section #da7;d7 of   
the ,internal ,revenue ,code of #aihf is
 amended by striking subparagraph 7,b7  
and by redesignating subparagraphs 7,c71
 7,d71 7,e71 7,f71 7,g71 and 7,h7 as    
subparagraphs 7,b71 7,c71 7,d71 7,e71   
7,f71 and 7,g71 respectively4  7b7      
,effective date ,the amendments made by 
this section shall apply to taxable     
years beginning after ,december #ca1    
#bjaf4  #f4 ,inclusion of cost reduction
 research  7a7 ,in general ,subparagraph
 7,a7 of section #da7;d77#c7 of the     
,internal ,revenue ,code of #aihf is    
amended-- 7#a7 by striking or at the end
 of clause 7ii72  7#b7 by striking the  
period at the end of clause 7iii7 and   
inserting 1 or2 and  7#c7 by adding at  
the end the following new clause3  7iv7 

reduction of costs associated with--    
7,i7 a business component of the        
taxpayer1 or  7,,ii7 research relating  
to a purpose described in clause 7i71   
7ii71 or 7iii74  4  7b7 ,effective date 
,the amendments made by this section    
shall apply to taxable years beginning  
after ,december #ca1 #bjaf4  #g4        
,inclusion of obsolescence mitigation   
7a7 ,in general ,clause 7iv7 of section 
#da7;d77#c77;,a7 of the ,internal       
,revenue ,code of #aihf1 as added by    
section #e1 is amended by inserting or  
obsolescence mitigation after reduction 
of costs4  7b7 ,effective date ,the     
amendment made by this section shall    
apply to taxable years beginning after  
,december #ca1 #bjaf4  #h4 ,election of 
reduced credit may be made on amended   
return  7a7 ,in general ,subparagraph   
7,c7 of section #bhj;,c7c77#c7 of the   
,internal ,revenue ,code of #aihf is    
amended to read as follows3  7,c7       
,election ,an election under this       
paragraph shall made in such manner as  

the ,secretary may prescribe and1 once  
made with respect to a taxable year1    
shall be irrevocable4 ,such election may
 be made on the return of tax for the   
taxable year to which it applies or on  
an amended return4  4  7b7 ,effective   
date ,the amendment made by this section
 shall apply to amended returns which   
are permitted to be filed under the     
applicable provisions of the ,internal  
,revenue ,code of #aihf after the date  
of the enactment of this ,act4