S. 1293 — Introduced in Senate

II 115th CONGRESS 1st Session S. 1293 IN THE SENATE OF THE UNITED STATES June 6, 2017 Mr. Coons (for himself and Mr. Roberts) introduced the following bill; which was read twice and referred to the Committee on Finance A BILL To amend the Internal Revenue Code of 1986 to enhance the research credit for domestic manufacturers. 1. Short title This Act may be cited as the Invent and Manufacture in America Act. 2. Enhanced research credit for domestic manufacturers (a) In general Section 41 of the Internal Revenue Code of 1986 is amended by adding at the end the following new subsection: (i) Enhanced credit for domestic manufacturers (1) In general In the case of a qualified domestic manufacturer, this section shall be applied— (A) except as provided in subparagraph (B), by increasing the 20 percent amount in subsection (a)(1) by the bonus amount, and (B) in the case of a qualified domestic manufacturer making an election under subsection (c)(5)— (i) by increasing the 14 percent amount under subsection (c)(5)(A) by the alternative simplified bonus amount, and (ii) by increasing the 6 percent amount under subsection (c)(5)(B)(ii) by the subsection (c)(5)(B) bonus amount. (2) Qualified domestic manufacturer For purposes of this subsection— (A) In general The term qualified domestic manufacturer means a taxpayer who has domestic production gross receipts which are more than 50 percent of total gross receipts. (B) Domestic production gross receipts The term domestic production gross receipts has the meaning given to such term under section 199(c)(4). (3) Bonus amount; alternative simplified bonus amount; subsection (c)(5)(B) amount For purposes of paragraph (1): If the percentage of total gross receipts which are domestic production gross receipts is:The bonus amount is the following number of percentage points:The alternative simplified bonus amount is the following number of percentage points:The subsection (c)(5)(B) bonus amount is the following number of percentage points:More than 50% but not more than 60%10.7 0.3 More than 60% but not more than 70%2 1.4 0.6 More than 70% but not more than 80%3 2.1 0.9 More than 80% but not more than 90%4 2.8 1.2 More than 90%5 3.51.5. . (b) Effective date The amendment made by this section shall apply to expenditures paid or incurred in taxable years beginning after December 31, 2017.