21st Century Investment Act of 2019

I 116TH CONGRESS 1ST SESSION H. R. 591 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. IN THE HOUSE OF REPRESENTATIVES JANUARY 16, 2019 Mr. BROWN of Maryland (for himself, Mr. CICILLINE, and Ms. NORTON) in- troduced the following bill; which was referred to the Committee on Ways and Means A BILL To amend the Internal Revenue Code of 1986 to increase the research credit with respect to amounts paid or in- curred for qualified research occurring in the United States. Be it enacted by the Senate and House of Representa- 1 tives of the United States of America in Congress assembled, 2 SECTION 1. SHORT TITLE. 3 This Act may be cited as the ‘‘21st Century Invest- 4 ment Act of 2019’’. 5 VerDate Sep 11 2014 03:28 Jan 29, 2019 Jkt 089200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H591.IH H591 kjohnson on DSK79L0C42 with BILLS 2 •HR 591 IH SEC. 2. INCREASE IN RESEARCH CREDIT FOR CONTRACTED 1 RESEARCH WITH UNITED STATES BUSI- 2 NESSES. 3 (a) IN GENERAL.—Section 41 of the Internal Rev- 4 enue Code of 1986 is amended by adding at the end the 5 following new subsection: 6 ‘‘(i) SPECIAL RULE FOR CONTRACTED RESEARCH 7 WITH UNITED STATES MANUFACTURING BUSINESS.— 8 ‘‘(1) IN GENERAL.—If the taxpayer elects the 9 application of this subsection, subsection (a)(1) shall 10 be applied by substituting ‘25 percent’ for ‘20 per- 11 cent’ with respect to qualified United States re- 12 search expenses. 13 ‘‘(2) QUALIFIED UNITED STATES RESEARCH 14 EXPENSES.—For purposes of this subsection, the 15 term ‘qualified United States research expenses’ 16 means any amount paid or incurred by the taxpayer 17 to any person (other than an employee of the tax- 18 payer) for qualified research, substantially all of 19 which occurs in the United States. 20 ‘‘(3) SEPARATE APPLICATION OF SECTION.—In 21 the case of any election of the application of this 22 subsection, this section shall be applied separately 23 with respect to qualified United States research ex- 24 penses.’’. 25 VerDate Sep 11 2014 03:28 Jan 29, 2019 Jkt 089200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H591.IH H591 kjohnson on DSK79L0C42 with BILLS 3 •HR 591 IH (b) EFFECTIVE DATE.—The amendments made by 1 this section shall apply to amounts paid or incurred in tax- 2 able years beginning after the date of the enactment of 3 this Act. 4 Æ VerDate Sep 11 2014 03:28 Jan 29, 2019 Jkt 089200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6301 E:\BILLS\H591.IH H591 kjohnson on DSK79L0C42 with BILLS