,,ii  #aae? ,,congress  #a/ ,session    
,s4 #baig  ,,9 ,,! ,,s5ate ,,( ,,!      
,,unit$ ,,/ates  ,decemb] #f1 #bjag,ms4 
,baldw9 introduc$ ! foll[+ bill2 :i* 0  
read twice & ref]r$ to ! ,committee on  
,f9ance  ,a ,,bill  ,to am5d ! ,int]nal 
,rev5ue ,code ( #aihf to re=m ! cr$it = 
increas+ rese>* activities1 & = o!r     
purposes4  #a4 ,increase ( alt]native   
simplifi$ cr$it  7a7 ,9 g5]al           
,subp>agraph 7,a7 ( section #da7;c77#e7 
( ! ,int]nal ,rev5ue ,code ( #aihf is   
am5d$ by /rik+ #ad p]c5t 7#ab p]c5t 9 ! 
case ( taxable ye>s end+ be=e ,janu>y   
#a1 #bjji7 & ins]t+ #bj p]c5t4  7b7     
,con=m+ am5dm5t ,clause 7ii7 ( section  
#da7;c77#e77;,b7 ( ! ,int]nal ,rev5ue   
,code ( #aihf is am5d$ by /rik+ #f p]c5t
 & ins]t+ #aj p]c5t4  7c7 ,effective    
date ,! am5dm5ts made by ?is section    
%all apply to taxable ye>s beg9n+ aft]  
,decemb] #ca1 #bjag4  #b4 ,allocation ( 
rese>* exp5ses among bus9ess compon5ts  
7a7 ,9 g5]al ,subp>agraph 7,a7 ( section
 #da7;d77#b7 ( ! ,int]nal ,rev5ue ,code 

( #aihf is am5d$ by ins]t+ 1 & may be   
appli$ us+ a me?od t relies on          
reasonable e/imation te*niques 9 lieu ( 
contemporane\s acc\nt+ to measure       
employee h\rs p] bus9ess compon5t be=e !
 p]iod4  7b7 ,effective date ,! am5dm5t 
made by ?is section %all apply to       
taxable ye>s beg9n+ aft] ,decemb] #ca1  
#bjag4  #c4 ,inclusion ( qualifi$       
upp]-level employees 9 rese>* exp5se    
calculation  7a7 ,9 g5]al ,clause 7ii7 (
 section #da7;b77#b77;,b7 ( ! ,int]nal  
,rev5ue ,code ( #aihf is am5d$ by ins]t+
 1 )\t reg>d to ! employee's position or
 managem5t level be=e ! p]iod4  7b7     
,effective date ,! am5dm5t made by ?is  
section %all apply to taxable ye>s      
beg9n+ aft] ,decemb] #ca1 #bjag4  #d4   
,repeal ( exclusion ( adaptive rese>*   
7a7 ,9 g5]al ,p>agraph 7#d7 ( section   
#da7;d7 ( ! ,int]nal ,rev5ue ,code (    
#aihf is am5d$ by /rik+ subp>agraph 7,b7
 & by r$esignat+ subp>agraphs 7,c71     
7,d71 7,e71 7,f71 7,g71 & 7,h7 z        
subp>agraphs 7,b71 7,c71 7,d71 7,e71    

7,f71 & 7,g71 respectively4  7b7        
,effective date ,! am5dm5ts made by ?is 
section %all apply to taxable ye>s      
beg9n+ aft] ,decemb] #ca1 #bjag4  #e4   
,inclusion ( co/ r$uction rese>*  7a7 ,9
 g5]al ,subp>agraph 7,a7 ( section      
#da7;d77#c7 ( ! ,int]nal ,rev5ue ,code (
 #aihf is am5d$--  7#a7 by /rik+ or at !
 end ( clause 7ii72  7#b7 by /rik+ !    
p]iod at ! end ( clause 7iii7 & ins]t+ 1
 or2 &  7#c7 by add+ at ! end ! foll[+  
new clause3  7iv7 r$uction ( co/s       
associat$ )--  7,i7 a bus9ess compon5t (
 ! taxpay]1 or  7,,ii7 rese>* relat+ to 
a purpose describ$ 9 clause 7i71 7ii71  
or 7iii74  4  7b7 ,effective date ,!    
am5dm5ts made by ?is section %all apply 
to taxable ye>s beg9n+ aft] ,decemb]    
#ca1 #bjag4  #f4 ,inclusion (           
obsolesc5ce mitigation  7a7 ,9 g5]al    
,clause 7iv7 ( section #da7;d77#c77;,a7 
( ! ,int]nal ,rev5ue ,code ( #aihf1 z   
add$ by section #e1 is am5d$ by ins]t+  
or obsolesc5ce mitigation aft] r$uction 
( co/s4  7b7 ,effective date ,! am5dm5t 

made by ?is section %all apply to       
taxable ye>s beg9n+ aft] ,decemb] #ca1  
#bjag4  #g4 ,election ( r$uc$ cr$it may 
be made on am5d$ return  7a7 ,9 g5]al   
,subp>agraph 7,c7 ( section             
#bhj;,c7c77#c7 ( ! ,int]nal ,rev5ue     
,code ( #aihf is am5d$ to read z foll[s3
  7,c7 ,election ,an election "u ?is    
p>agraph %all made 9 su* mann] z !      
,secret>y may prescribe &1 once made )  
respect to a taxable ye>1 %all be       
irrevocable4 ,su* election may be made  
on ! return ( tax = ! taxable ye> to :i*
 x applies or on an am5d$ return4  4    
7b7 ,effective date ,! am5dm5t made by  
?is section %all apply to am5d$ returns 
:i* are p]mitt$ to be fil$ "u !         
applicable provisions ( ! ,int]nal      
,rev5ue ,code ( #aihf aft] ! date ( !   
enactm5t ( ?is ,act4  #h4 ,inve/m5t 9   
connect$ manufactur+ equipm5t  7a7 ,9   
g5]al ,subp>t ,d ( "p ,,iv ( sub*apt] ,a
 ( *apt] #a ( ! ,int]nal ,rev5ue ,code (
 #aihf is am5d$ by add+ at ! end !      
foll[+ new section3  #de,s4 ,connect$   

manufactur+ equipm5t  7a7 ,am\nt ( cr$it
 ,= purposes ( section #ch1 ! connect$  
manufactur+ equipm5t cr$it = any taxable
 ye> is an am\nt equal to #aj p]c5t ( ! 
qualifi$ connect$ manufactur+ equipm5t  
exp5ditures made by ! taxpay] dur+ su*  
ye>4  7b7 ,qualifi$ connect$ manufactur+
 equipm5t exp5ditures  7#a7 ,9 g5]al    
,subject to p>agraph 7#b71 = purposes ( 
?is section1 ! t]m qualifi$ connect$    
manufactur+ equipm5t exp5ditures means  
an exp5diture relat+ to ! pur*ase or    
in/allation (-- 7,a7 indu/rial equipm5t 
compon5ts :i* conta9 a microprocessor & 
c be connect$ to an electronic          
communication network1 &  7,b7 any      
s(tw>e1 r\t+1 or local area network     
compon5ts necess>y to connect compon5ts 
describ$ 9 subp>agraph 7,a7 to an       
electronic communication network4  7#b7 
,eligibility ,! ,secret>y1 9            
consultation ) ! ,secret>y ( ,comm]ce1  
%all id5tify ! types ( compon5ts        
describ$ 9 p>agraph 7#a7 :i* are        
eligible = ! cr$it "u ?is section4  7c7 

,basis adju/m5t ,= purposes ( ?is       
subtitle1 if a cr$it is all[$ "u ?is    
section = any exp5diture ) respect to   
any prop]ty1 ! increase 9 ! basis ( su* 
prop]ty :i* w\ld 7b = ?is subsection7   
result f su* exp5diture %all be r$uc$ by
 ! am\nt ( ! cr$it s all[$4  4  7b7     
,con=m+ am5dm5ts  7#a7 ,section #ch7;b7 
( ! ,int]nal ,rev5ue ,code ( #aihf is   
am5d$-- 7,a7 by /rik+ plus at ! end (   
p>agraph 7#ce72  7,b7 by /rik+ ! p]iod  
at ! end ( p>agraph 7#cf7 & ins]t+ 1    
plus2 &  7,c7 by add+ at ! end ! foll[+ 
new p>agraph3  7#cg7 ! connect$         
manufactur+ equipm5t cr$it det]m9$ "u   
section #de,s7a74  4  7#b7 ,! table (   
sections = subp>t ,d ( "p ,,iv (        
sub*apt] ,a ( *apt] #a ( su* ,code is   
am5d$ by add+ at ! end ! foll[+ new     
item3  ,sec4 #de,s4 ,connect$           
manufactur+ equipm5t cr$it4  4  7c7     
,effective date ,! am5dm5ts made by ?is 
section %all apply to taxable ye>s      
beg9n+ aft] ,decemb] #ca1 #bjah4