S.Amdt. 3394

SA 3394. Mrs. LINCOLN submitted an amendment intended to be proposed
to amendment SA 3336 proposed by Mr. Baucus to the bill H.R. 4213, to
amend the Internal Revenue Code of 1986 to extend certain expiring
provisions, and for other purposes; which was ordered to lie on the
table; as follows:

On page 268, between lines 11 and 12, insert the following:

SEC. __. ENHANCED RESEARCH CREDIT FOR DOMESTIC MANUFACTURERS.

(a) In General.--Section 41 of the Internal Revenue Code of
1986 is amended by adding at the end the following new
subsection:
``(i) Enhanced Credit for Domestic Manufacturers.--
``(1) In general.--In the case of a qualified domestic
manufacturer, this section shall be applied by increasing the
following by the bonus amount:
``(A) The 20 percent amount under subsection (a)(1).
``(B) The 20 percent amount under subsection (a)(2).
``(C) The 20 percent amount under subsection (a)(3).
``(D) The 14 percent amount under subsection (c)(5)(A).
``(2) Qualified domestic manufacturer.--For purposes of
this subsection--
``(A) In general.--The term `qualified domestic
manufacturer' means a taxpayer who has domestic production
gross receipts which are more than 50 percent of total
production gross receipts.
``(B) Domestic production gross receipts.--The term
`domestic production gross receipts' has the meaning given to
such term under section 199(c)(4).
``(C) Total production gross receipts.--The term `total
production gross receipts' means the gross receipts of the
taxpayer which are described in section 199(c)(4),
determined--
``(i) without regard to whether property described in
subparagraph (A)(i)(I) or (A)(i)(III) thereof was
manufactured, produced, grown, or extracted in the United
States,
``(ii) by substituting `any property described in section
168(f)(3)' for `any qualified film' in subparagraph
(A)(i)(II) thereof, and
``(iii) without regard to whether any construction
described in subparagraph (A)(ii) thereof or services
described in subparagraph (A)(iii) thereof were performed in
the United States.
``(3) Bonus amount.--For purposes of paragraph (1), the
bonus amount shall be determined as follows:

``If the percentage of total production  The bonus amount is:
gross receipts which are domestic
production gross receipts is:
More than 50 percent and not more      2 percentage points
than 60 percent.
More than 60 percent and not more      4 percentage points
than 70 percent.
More than 70 percent and not more      6 percentage points
than 80 percent.
More than 80 percent and not more      8 percentage points
than 90 percent.
More than 90 percent.................  10 percentage points.''.

(b) Effective Date.--The amendment made by this section
shall apply to expenditures paid or incurred in taxable years
beginning after the date of the enactment of this Act.
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