1. Short title
This Act may be cited as the “21st Century Investment Act of 2019”.
21st Century Investment Act of 2019
A BILL
To amend the Internal Revenue Code of 1986 to increase the research credit with respect to amounts paid or incurred for qualified research occurring in the United States.
2. Increase in research credit for contracted research with United States businesses
In general— Section 41 of the Internal Revenue Code of 1986 is amended by adding at the end the following new subsection:
“(i) Special rule for contracted research with United States manufacturing business
“(1) In general—If the taxpayer elects the application of this subsection, subsection (a)(1) shall be applied by substituting “25 percent” for “20 percent” with respect to qualified United States research expenses.
“(2) Qualified United States research expenses—For purposes of this subsection, the term “qualified United States research expenses” means any amount paid or incurred by the taxpayer to any person (other than an employee of the taxpayer) for qualified research, substantially all of which occurs in the United States.
“(3) Separate application of section—In the case of any election of the application of this subsection, this section shall be applied separately with respect to qualified United States research expenses.”
Effective date— The amendments made by this section shall apply to amounts paid or incurred in taxable years beginning after the date of the enactment of this Act.