Sec. 3203. Research credit modified and made permanent
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Subsection
(a)of section 41 is amended to read as follows: For purposes of section 38, the research credit determined under this section for the taxable year shall be an amount equal to the sum of— 15 percent of so much of the qualified research expenses for the taxable year as exceeds 50 percent of the average qualified research expenses for the 3 taxable years preceding the taxable year for which the credit is being determined, plus 15 percent of so much of the basic research payments for the taxable year as exceeds 50 percent of the average basic research payments for the 3 taxable years preceding the taxable year for which the credit is being determined. . Section 41 is amended by striking subsection (h). Subsection
(c)of section 41 is amended to read as follows: In any case in which the taxpayer has no qualified research expenses in any one of the 3 taxable years preceding the taxable year for which the credit is being determined, the amount determined under subsection (a)(1) for such taxable year shall be equal to 10 percent of the qualified research expenses for the taxable year. 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 expenses, or average basic research payments, taken into account under subsection (a), 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 payments, respectively, for the credit year. 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 (a). . Section 41(e) is amended— by striking all that precedes paragraph
(6)and inserting the following: For purposes of this section— The term basic research payment means, with respect to any taxable year, any amount paid in cash during such taxable year by a corporation to any qualified organization for basic research but only if— such payment is pursuant to a written agreement between such corporation and such qualified organization, and such basic research is to be performed by such qualified organization. In the case of a qualified organization described in subparagraph
(C)or
(D)of paragraph (3), subparagraph
(B)of paragraph
(1)shall not apply. , by redesignating paragraphs
(6)and
(7)as paragraphs
(3)and (4), respectively, and in paragraph
(4)as so redesignated, by striking subparagraphs
(B)and
(C)and by redesignating subparagraphs
(D)and
(E)as subparagraphs
(B)and (C), respectively. Section 41(f)(1) is amended by striking , basic research payments, and amounts paid or incurred to energy research consortiums, in subparagraphs (A)(ii) and (B)(ii) and inserting and basic research payments . Section 41(f) is amended by striking paragraph (6). Except as provided in subparagraph (B), the amendments made by this subsection shall apply to taxable years beginning after December 31, 2013.
(2)The amendment made by paragraph
(2)shall apply to amounts paid or incurred after December 31, 2013. Subparagraph
(E)of section 41(d)(4) is amended— by striking Except to the extent provided in regulations, any research and inserting Any research , and by striking which is developed by and all that follows through the end and inserting a period. Paragraph
(3)of section 41(b) is amended by striking subparagraphs
(C)and (D). Subparagraph
(A)of section 41(b)(2) is amended by inserting and at the end of clause (i), by striking clause (ii), and by redesignating clause
(iii)as clause (ii). Section 280C(c) is amended by striking paragraphs
(3)and (4). The second sentence of section 41(b)(2)(A) is amended by striking Clause
(iii)and inserting Clause
(ii). Section 41(b)(2) is amended by striking subparagraph
(C)and by redesignating subparagraph
(D)as subparagraph (C). Section 41(d)(2)(B) is amended by striking , computer software . The amendments made by this subsection shall apply to taxable years beginning after December 31, 2013.