Sec. 201. Extension of research credit; alternative simplified research credit increased and made permanent
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Paragraph
(1)of section 41(h) of the Internal Revenue Code of 1986 is amended by striking December 31, 2014 and inserting December 31, 2016 . The amendment made by paragraph
(1)shall apply to amounts paid or incurred after December 31, 2014. Subparagraph
(A)of section 41(c)(5) of such Code (relating to election of alternative simplified credit) is amended by striking 14 percent (12 percent in the case of taxable years ending before January 1, 2009) and inserting 20 percent . Subsection
(h)of section 41 of such Code is amended by redesignating the paragraph
(2)relating to computation of taxable year in which credit terminates as paragraph
(4)and by inserting before such paragraph the following new paragraph: Paragraph
(1)shall not apply to the credit determined under subsection (c)(5). . Paragraph
(4)of section 41(h) of such Code, as redesignated by subparagraph (A), is amended to read as follows: In the case of any taxable year with respect to which this section applies to a number of days which is less than the total number of days in such taxable year, the amount determined under subsection (c)(1)(B) with respect to such taxable year shall be the amount which bears the same ratio to such amount (determined without regard to this paragraph) as the number of days in such taxable year to which this section applies bears to the total number of days in such taxable year. . The amendments made by this subsection shall apply to taxable years ending after December 31, 2014.