S.Amdt. 3189

SA 3189. Mr. THUNE (for himself, Mr. McConnell, Mr. Cornyn, Mr.
Roberts, and Mr. Isakson) submitted an amendment intended to be
proposed to amendment SA 3060 proposed by Mr. Wyden to the bill H.R.
3474, to amend the Internal Revenue Code of 1986 to allow employers to
exempt employees with health coverage under TRICARE or the Veterans
Administration from being taken into account for purposes of the
employer mandate under the Patient Protection and Affordable Care Act;
which was ordered to lie on the table; as follows:

Strike section 111 and insert the following:

SEC. 111. RESEARCH CREDIT SIMPLIFIED AND MADE PERMANENT.

(a) In General.--Subsection (a) of section 41 is amended to
read as follows:
``(a) In General.--For purposes of section 38, the research
credit determined under this section for the taxable year
shall be an amount equal to the sum of--
``(1) 20 percent of so much of the qualified research
expenses for the taxable year as exceeds 50 percent of the
average qualified research expenses for the 3 taxable years
preceding the taxable year for which the credit is being
determined,
``(2) 20 percent of so much of the basic research payments
for the taxable year as exceeds 50 percent of the average
basic research payments for the 3 taxable years preceding the
taxable year for which the credit is being determined, plus
``(3) 20 percent of the amounts paid or incurred by the
taxpayer in carrying on any trade or business of the taxpayer
during the taxable year (including as contributions) to an
energy research consortium for energy research.''.
(b) Repeal of Termination.--Section 41 is amended by
striking subsection (h).
(c) Conforming Amendments.--
(1) Subsection (c) of section 41 is amended to read as
follows:
``(c) Determination of Average Research Expenses for Prior
Years.--
``(1) Special rule in case of no qualified research
expenditures in any of 3 preceding taxable years.--In any
case in which the taxpayer has no qualified research expenses
in any one of the 3 taxable years preceding the taxable year
for which the credit is being determined, the amount
determined under subsection (a)(1) for such taxable year
shall be equal to 10 percent of the qualified research
expenses for the taxable year.
``(2) Consistent treatment of expenses.--
``(A) In general.--Notwithstanding whether the period for
filing a claim for credit or refund has expired for any
taxable year taken into account in determining the average
qualified research expenses, or average basic research
payments, taken into account under subsection (a), the
qualified research expenses and basic research payments taken
into account in determining such averages shall be determined
on a basis consistent with the determination of qualified
research expenses and basic research payments, respectively,
for the credit year.
``(B) Prevention of distortions.--The Secretary may
prescribe regulations to prevent distortions in calculating a
taxpayer's

[[Page S3133]]

qualified research expenses or basic research payments caused
by a change in accounting methods used by such taxpayer
between the current year and a year taken into account in
determining the average qualified research expenses or
average basic research payments taken into account under
subsection (a).''.
(2) Section 41(e) is amended--
(A) by striking all that precedes paragraph (6) and
inserting the following:
``(e) Basic Research Payments.--For purposes of this
section--
``(1) In general.--The term `basic research payment' means,
with respect to any taxable year, any amount paid in cash
during such taxable year by a corporation to any qualified
organization for basic research but only if--
``(A) such payment is pursuant to a written agreement
between such corporation and such qualified organization, and
``(B) such basic research is to be performed by such
qualified organization.
``(2) Exception to requirement that research be performed
by the organization.--In the case of a qualified organization
described in subparagraph (C) or (D) of paragraph (3),
subparagraph (B) of paragraph (1) shall not apply.'',
(B) by redesignating paragraphs (6) and (7) as paragraphs
(3) and (4), respectively, and
(C) in paragraph (4) as so redesignated, by striking
subparagraphs (B) and (C) and by redesignating subparagraphs
(D) and (E) as subparagraphs (B) and (C), respectively.
(3) Section 41(f)(3)is amended--
(A)(i) by striking ``, and the gross receipts'' in
subparagraph (A)(i) and all that follows through ``determined
under clause (iii)'',
(ii) by striking clause (iii) of subparagraph (A) and
redesignating clauses (iv), (v), and (vi), thereof, as
clauses (iii), (iv), and (v), respectively,
(iii) by striking ``and (iv)'' each place it appears in
subparagraph (A)(iv) (as so redesignated) and inserting ``and
(iii)'',
(iv) by striking subclause (IV) of subparagraph (A)(iv) (as
so redesignated), by striking ``, and'' at the end of
subparagraph (A)(iv)(III) (as so redesignated) and inserting
a period, and by adding ``and'' at the end of subparagraph
(A)(iv)(II) (as so redesignated),
(v) by striking ``(A)(vi)'' in subparagraph (B) and
inserting ``(A)(v)'', and
(vi) by striking ``(A)(iv)(II)'' in subparagraph (B)(i)(II)
and inserting ``(A)(iii)(II)'',
(B) by striking ``, and the gross receipts of the
predecessor,'' in subparagraph (A)(iv)(II) (as so
redesignated),
(C) by striking ``, and the gross receipts of,'' in
subparagraph (B),
(D) by striking ``, or gross receipts of,'' in subparagraph
(B)(i)(I), and
(E) by striking subparagraph (C).
(d) Effective Date.--
(1) In general.--Except as provided in paragraph (2), the
amendments made by this section shall apply to taxable years
beginning after December 31, 2013.
(2) Subsection (b).--The amendment made by subsection (b)
shall apply to amounts paid or incurred after December 31,
2013.
______