Section 1 Short title
This Act may be cited as the “Create Jobs by Expanding the R&D Tax Credit Act of 2013”.
Create Jobs by Expanding the R&D Tax Credit Act of 2013
A BILL
To amend the Internal Revenue Code of 1986 to increase the credit for research expenses for 2013 and 2014 and to allow the credit to be assigned.
Sec. 2 Increase in research expenses taken into account for the research credit
In general— Section 41 of the Internal Revenue Code of 1986 is amended by redesignating subsection (h) as subsection (i) and by inserting after subsection (g) the following new subsection:
“(h) Temporary Bonus for Qualifying Research Expenses—In the case of any taxable year beginning in 2013 or 2014—
“(1) subsection (a)(1) shall be applied by substituting “30 percent” for “20 percent”,
“(2) subsection (c)(5)(A) shall be applied by substituting “20 percent” for “14 percent”, and
“(3) subsection (c)(5)(B)(ii) shall be applied by substituting “12 percent” for “6 percent”.”
Extension of credit— Subparagraph (B) of section 41(i)(1) of such Code, as redesignated by subsection (a), is amended by striking “December 31, 2011” and inserting “December 31, 2014”.
Effective date— The amendments made by this section shall apply to taxable years beginning after December 31, 2012.
Sec. 3 Transferability of research credit
In general— Section 41 of the Internal Revenue Code of 1986, as amended by section 2, is amended by redesignating subsection (i) as subsection (j) and by inserting after subsection (h) the following new subsection:
“(i) Credit May Be Assigned
“(1) In general—If, for any taxable year beginning in 2013 or 2014, a qualified taxpayer elects the application of this subsection for such taxable year, the amount of credit determined under this section for such year which would (but for this subsection) be allowable to the qualified taxpayer shall be allowable to the person designated by the qualified taxpayer. Such amount shall be determined by applying this section separately from section 38 for such year. The person so designated shall be treated as the taxpayer with respect to this section (other than this subsection) for purposes of this title (other than this paragraph).
“(2) Treatment of amounts paid for assignment—If any amount is paid to the person who assigns the credit determined under this section, no portion of such amount shall be includible in such person’s gross income.
“(3) Qualified taxpayer—The term qualified taxpayer means, with respect to any taxable year, any small business concern (as defined in section 3 of the Small Business Act) if such concern employs an average of fewer than 500 employees on business days during such year.”
Effective date— The amendments made by this section shall apply to taxable years beginning after December 31, 2012.