Sec. 301. EXTENSION AND MODIFICATION OF RESEARCH CREDIT
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## SEC. 301 EXTENSION AND MODIFICATION OF RESEARCH CREDIT ###
(a)Extension ####
(1)In general Subparagraph
(B)of section 41(h)(1) is amended by striking “December 31, 2011” and inserting “December 31, 2013”. ####
(2)Conforming amendment Subparagraph
(D)of section 45C(b)(1) is amended by striking “December 31, 2011” and inserting “December 31, 2013”. ###
(b)Inclusion of Qualified Research Expenses and Gross Receipts of an Acquired Person ####
(1)Partial inclusion of pre-acquisition qualified research expenses and gross receipts Subparagraph
(A)of section 41(f)(3) is amended to read as follows: > > ##### “(A) Acquisitions > > > ###### “(i) In general > > If a person acquires the major portion of either a trade or business or a separate unit of a trade or business (hereinafter in this paragraph referred to as the ‘acquired business’) of another person (hereinafter in this paragraph referred to as the ‘predecessor’), then the amount of qualified research expenses paid or incurred by the acquiring person during the measurement period shall be increased by the amount determined under clause (ii), and the gross receipts of the acquiring person for such period shall be increased by the amount determined under clause (iii). > > > ###### “(ii) Amount determined with respect to qualified research expenses > > The amount determined under this clause is— > > > ###### “(I) > > for purposes of applying this section for the taxable year in which such acquisition is made, the acquisition year amount, and > > > ###### “(II) > > for purposes of applying this section for any taxable year after the taxable year in which such acquisition is made, the qualified research expenses paid or incurred by the predecessor with respect to the acquired business during the measurement period. > > > ###### “(iii) Amount determined with respect to gross receipts > > The amount determined under this clause is the amount which would be determined under clause
(ii)if ‘the gross receipts of’ were substituted for ‘the qualified research expenses paid or incurred by’ each place it appears in clauses
(ii)and (iv). > > > ###### “(iv) Acquisition year amount > > For purposes of clause (ii), the acquisition year amount is the amount equal to the product of— > > > ###### “(I) > > the qualified research expenses paid or incurred by the predecessor with respect to the acquired business during the measurement period, and > > > ###### “(II) > > the number of days in the period beginning on the date of the acquisition and ending on the last day of the taxable year in which the acquisition is made, > > divided by the number of days in the acquiring person’s taxable year. > > > ###### “(v) Special rules for coordinating taxable years > > In the case of an acquiring person and a predecessor whose taxable years do not begin on the same date— > > > ###### “(I) > > each reference to a taxable year in clauses
(ii)and
(iv)shall refer to the appropriate taxable year of the acquiring person, > > > ###### “(II) > > the qualified research expenses paid or incurred by the predecessor, and the gross receipts of the predecessor, during each taxable year of the predecessor any portion of which is part of the measurement period shall be allocated equally among the days of such taxable year, > > > ###### “(III) > > the amount of such qualified research expenses taken into account under clauses
(ii)and
(iv)with respect to a taxable year of the acquiring person shall be equal to the total of the expenses attributable under subclause
(II)to the days occurring during such taxable year, and > > > ###### “(IV) > > the amount of such gross receipts taken into account under clause
(iii)with respect to a taxable year of the acquiring person shall be equal to the total of the gross receipts attributable under subclause
(II)to the days occurring during such taxable year. > > > ###### “(vi) Measurement period > > For purposes of this subparagraph, the term ‘measurement period’ means, with respect to the taxable year of the acquiring person for which the credit is determined, any period of the acquiring person preceding such taxable year which is taken into account for purposes of determining the credit for such year.” > . ####
(2)Expenses and gross receipts of a predecessor **[**[26 U.S.C. 41](/us/usc/t26/s41)**]** Subparagraph
(B)of section 41(f)(3) is amended to read as follows: > > ##### “(B) Dispositions > > If the predecessor furnished to the acquiring person such information as is necessary for the application of subparagraph (A), then, for purposes of applying this section for any taxable year ending after such disposition, the amount of qualified research expenses paid or incurred by, and the gross receipts of, the predecessor during the measurement period (as defined in subparagraph (A)(vi), determined by substituting ‘predecessor’ for ‘acquiring person’ each place it appears) shall be reduced by— > > > ###### “(i) > > in the case of the taxable year in which such disposition is made, an amount equal to the product of— > > > ###### “(I) > > the qualified research expenses paid or incurred by, or gross receipts of, the predecessor with respect to the acquired business during the measurement period (as so defined and so determined), and > > > ###### “(II) > > the number of days in the period beginning on the date of acquisition (as determined for purposes of subparagraph (A)(iv)(II)) and ending on the last day of the taxable year of the predecessor in which the disposition is made, > > divided by the number of days in the taxable year of the predecessor, and > > > ###### “(ii) > > in the case of any taxable year ending after the taxable year in which such disposition is made, the amount described in clause (i)(I).” > . ###
(c)Aggregation of Expenditures **[**[26 U.S.C. 41](/us/usc/t26/s41)**]** Paragraph
(1)of section 41(f) is amended— ####
(1)by striking “shall be its proportionate shares of the qualified research expenses, basic research payments, and amounts paid or incurred to energy research consortiums, giving rise to the credit” in subparagraph (A)(ii) and inserting “shall be determined on a proportionate basis to its share of the aggregate of the qualified research expenses, basic research payments, and amounts paid or incurred to energy research consortiums, taken into account by such controlled group for purposes of this section”, and ####
(2)by striking “shall be its proportionate shares of the qualified research expenses, basic research payments, and amounts paid or incurred to energy research consortiums, giving rise to the credit” in subparagraph (B)(ii) and inserting “shall be determined on a proportionate basis to its share of the aggregate of the qualified research expenses, basic research payments, and amounts paid or incurred to energy research consortiums, taken into account by all such persons under common control for purposes of this section”. ###
(d)Effective Date **[**[26 U.S.C. 41 note](/us/usc/t26/s41)**]** ####
(1)Extension The amendments made by subsection
(a)shall apply to amounts paid or incurred after December 31, 2011. ####
(2)Modifications The amendments made by subsections
(b)and
(c)shall apply to taxable years beginning after December 31, 2011.
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Sec. 301
EXTENSION AND MODIFICATION OF RESEARCH CREDIT
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