S. 825Senate112th Congress (2011-2013)In Committee

Job Creation Through Innovation Act

Introduced April 14, 2011

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SenateIntro Referral Latest Action

Read twice and referred to the Committee on Finance. (text of measure as introduced: CR S2514-2516)

April 14, 2011

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SenateIntro Referral

Introduced in Senate

April 14, 2011

SenateIntro Referral

Sponsor introductory remarks on measure. (CR S2514)

April 14, 2011

SenateIntro Referral

Read twice and referred to the Committee on Finance. (text of measure as introduced: CR S2514-2516)

April 14, 2011

Floor Debate

17 members

What members said about S. 825 on the floor

4 Republicans13 Democrats
Mary L. Landrieu
Sen. Mary L. LandrieuD-LA · Apr 14, 2011

Mr. President, I am going to speak for 2 or 3 minutes in a brief introduction, and then turn it over to my colleague from Louisiana. We are both very excited and enthusiastic to present to the Senate…

Chuck Grassley
Sen. Chuck GrassleyR-IA · Apr 14, 2011

Mr. President, I am pleased to join my colleague, Senator Klobuchar, in cosponsoring the Combating Designer Drugs Act of 2011. All too often we are confronted with new and emerging drugs that spread…

Patrick J. Leahy
Sen. Patrick J. LeahyD-VT · Apr 14, 2011

Mr. President, today, I am reintroducing the Uniting American Families Act, UAFA, which grants same-sex binational couples the same immigration benefits heterosexual couples have long enjoyed. This…

Richard J. Durbin
Sen. Richard J. DurbinD-IL · Apr 14, 2011

Mr. President, the month of April is set aside as Autism Awareness Month. This is a time when people and families affected by autism raise awareness about the challenges people with autism face. I am…

Susan M. Collins
Sen. Susan M. CollinsR-ME · Apr 14, 2011

Mr. President, I rise to introduce the SAFE Port Reauthorization Act of 2011. This bill extends important programs that help to protect our nation's critical shipping lanes and seaports from attack…

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Mark Udall
Sen. Mark UdallD-CO · Apr 14, 2011

Mr. President, today I am introducing a bipartisan bill along with my colleague Senator Collins to help improve the health and efficiency of our schools by making them more energy efficient, while…

Tom Harkin
Sen. Tom HarkinD-IA · Apr 14, 2011

Mr. President, as we seek to ensure that our students have the knowledge and skills they need to succeed in college and careers, we must revisit how learning time is structured to help them meet the…

John F. Kerry
Sen. John F. KerryD-MA · Apr 14, 2011

Mr. President, today too many Medicare beneficiaries are being saddled with thousands of dollars of unnecessary out-of-pocket costs for stays at skilled nursing facilities, SNF, solely because of the…

Joseph I. Lieberman
Sen. Joseph I. LiebermanD-CT · Apr 14, 2011

Mr. President, I rise today with my colleague Senator Bennet, to introduce the Race to the Top Act of 2011. The Race to the Top Act will authorize the continuation of the highly successful Race to…

Christopher A. Coons
Sen. Christopher A. CoonsD-DE · Apr 14, 2011

Mr. President, I rise today to introduce my first bill in the Senate, one I believe will promote competitiveness and spur the growth of sustainable middle class jobs. As I noted in my maiden speech…

Christopher A. Coons
Sen. Christopher A. CoonsD-DE · Apr 14, 2011

Mr. President, I rise today to introduce my first bill in the Senate, one I believe will promote competitiveness and spur the growth of sustainable middle class jobs. As I noted in my maiden speech…

Sheldon Whitehouse
Sen. Sheldon WhitehouseD-RI · Apr 14, 2011

Mr. President, it is my honor today to introduce the Success in the Middle Act of 2011. This bill recognizes the role of the middle grades as a tipping point in the education of many of our Nation's…

Richard C. Shelby
Sen. Richard C. ShelbyR-AL · Apr 14, 2011

Mr. President, I rise today to once again introduce my flat tax bill, the Smart, Manageable and Responsible Tax Act, referred to as the SMART Act. In the United States, there are few, if any, days…

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Dianne Feinstein
Sen. Dianne FeinsteinD-CA · Apr 14, 2011

Mr. President, I rise today to introduce the Infrastructure Facilitation and Habitat Conservation Act of 2011. This legislation will make it easier for communities to build infrastructure and grow by…

Mark  Begich
Sen. Mark Begich D-AK · Apr 14, 2011

Mr. President--I wish to speak about legislation I am introducing today aimed at streamlining a cumbersome development process for offshore oil and gas development adjacent to Alaska. About a month…

David Vitter
Sen. David VitterR-LA · Apr 14, 2011

Mr. President, I am proud to join my colleague Senator Landrieu in introducing today this RESTORE the Gulf Coast Act of 2011. I want to also thank her and compliment her on her leadership on this…

Carl Levin
Sen. Carl LevinD-MI · Apr 14, 2011

Mr. President, I have been fighting over the past several years to stop the thousands of trash shipments entering into Michigan from Canada. This year brought some welcome good news: Canada has…

Al  Franken
Sen. Al Franken D-MN · Apr 14, 2011

Mr. President, today, I am reintroducing the Dairy Country Of Origin Labeling Act, or Dairy COOL, with Senator Schumer, Senator Gillibrand, Senator Sherrod Brown, and Senator Sanders. Our bill is…

Bill Text

Latest available legislative text

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Introduced in SenateIssued April 14, 2011

II

112th CONGRESS

1st Session

S. 825

IN THE SENATE OF THE UNITED STATES

April 14, 2011

Mr. Coons introduced the following bill; which was read twice and referred to the Committee on Finance

A BILL

To amend the Internal Revenue Code of 1986 to permanently extend and modify the research tax credit, and for other purposes.

1.

Short title

(a)

Short title

This Act may be cited as the Job Creation Through Innovation Act.

(b)

Amendment of 1986 Code

Except as otherwise expressly provided, whenever in this Act an amendment or repeal is expressed in terms of an amendment to, or repeal of, a section or other provision, the reference shall be considered to be made to a section or other provision of the Internal Revenue Code of 1986.

2.

Use of only simplified research credit after 2011; expansion and permanent extension

(a)

Simplified credit for qualified research expenses

Subsection (a) of section 41 is amended to read as follows:

(a)

General rule

(1)

Credit determined

For purposes of section 38, the research credit determined under this section for the taxable year shall be an amount equal to 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)

Special rule in case of no qualified research expenses in any of 3 preceding taxable years

(A)

Taxpayers to which paragraph applies

The credit under this section shall be determined under this paragraph if 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.

(B)

Credit rate

The credit determined under this paragraph shall be equal to 10 percent of the qualified research expenses for the taxable year.

.

(b)

Conforming amendments

(1)

Termination of base amount calculation

Section 41 is amended by striking subsection (c) and redesignating subsection (d) as subsection (c).

(2)

Termination of basic research payment calculation

Section 41 is amended by striking subsection (e) and redesignating subsections (f) and (g) as subsections (d) and (e), respectively.

(3)

Special rules

(A)

Paragraph (1)(A)(ii) of subsection (d) of section 41, as so redesignated, is amended by striking shares of the qualified research expenses, basic research payments, and amounts paid or incurred to energy research consortiums, and inserting share of the qualified research expenses.

(B)

Paragraph (1)(B)(ii) of section 41(d), as so redesignated, is amended by striking shares of the qualified research expenses, basic research payments, and amounts paid or incurred to energy research consortiums, and inserting share of the qualified research expenses.

(C)

Paragraph (3) of section 41(d), as so redesignated, is amended—

(i)

by striking , and the gross receipts of the taxpayer and all that follows in subparagraph (A) and inserting a period,

(ii)

by striking , and the gross receipts of the taxpayer and all that follows in subparagraph (B) and inserting a period, and

(iii)

by striking subparagraph (C).

(D)

Paragraph (4) of section 41(d), as so redesignated, is amended by striking and gross receipts.

(E)

Subsection (d) of section 41, as so redesignated, is amended by striking paragraph (6).

(4)

Permanent extension

(A)

Section 41 is amended by striking subsection (h).

(B)

Section 45C(b)(1) is amended by striking subparagraph (D).

(5)

Cross-references

(A)

Paragraphs (2)(A) and (4) of section 41(b) are each amended by striking subsection (f)(1) and inserting subsection (d)(1).

(B)

Paragraph (2) of section 45C(c) is amended by striking base period research expenses and inserting average qualified research expenses.

(C)

Paragraph (3) of section 45C(d) is amended by striking section 41(f) and inserting section 41(d).

(D)

Paragraph (2) of section 45G(e) is amended by striking section 41(f) and inserting section 41(d).

(E)

Subsection (g) of section 45O is amended by striking section 41(f) and inserting section 41(d).

(F)

Subparagraph (A) of section 54(l)(3) is amended by striking section 41(g) and inserting section 41(e).

(G)

Clause (i) of section 170(e)(4)(B) is amended to read as follows:

(i)

the contribution is to a qualified organization,

.

(H)

Paragraph (4) of section 170(e) is amended by adding at the end the following new subparagraph:

(E)

Qualified organization

For purposes of this paragraph, the term qualified organization means—

(i)

any educational organization which—

(I)

is an institution of higher education (within the meaning of section 3304(f)), and

(II)

is described in subsection (b)(1)(A)(ii), or

(ii)

any organization not described in clause (i) which—

(I)

is described in section 501(c)(3) and is exempt from tax under section 501(a),

(II)

is organized and operated primarily to conduct scientific research, and

(III)

is not a private foundation.

.

(I)

Subsection (f) of section 197 is amended by striking section 41(f)(1) each place it appears in paragraphs (1)(C) and (9)(C)(i) and inserting section 41(d)(1).

(J)

Section 280C is amended—

(i)

by striking 41(f) each place it appears in subsection (b)(3) and inserting 41(d),

(ii)

by striking or basic research expenses (as defined in section 41(e)(2)) in subsection (c)(1),

(iii)

by striking section 41(a)(1) in subsection (c)(2)(A) and inserting section 41(a), and

(iv)

by striking or basic research expenses in subsection (c)(2)(B).

(K)

Subclause (IV)(c) of section 936(h)(5)(C)(i) is amended by striking section 41(f) and inserting section 41(d).

(L)

Subparagraph (D) of section 936(j)(5) is amended by striking section 41(f)(3) and inserting section 41(d)(3).

(M)

Clause (i) of section 965(c)(2)(C) is amended by striking section 41(f)(3) and inserting section 41(d)(3).

(N)

Clause (i) of section 1400N(l)(7)(B) is amended by striking section 41(g) and inserting section 41(e).

(c)

Technical corrections

Section 409 is amended—

(1)

by inserting , as in effect before the enactment of the Tax Reform Act of 1984) after section 41(c)(1)(B) in subsection (b)(1)(A),

(2)

by inserting , as in effect before the enactment of the Tax Reform Act of 1984 after relating to the employee stock ownership credit in subsection (b)(4),

(3)

by inserting (as in effect before the enactment of the Tax Reform Act of 1984) after section 41(c)(1)(B) in subsection (i)(1)(A),

(4)

by inserting (as in effect before the enactment of the Tax Reform Act of 1984) after section 41(c)(1)(B) in subsection (m),

(5)

by inserting (as so in effect) after section 48(n)(1) in subsection (m),

(6)

by inserting (as in effect before the enactment of the Tax Reform Act of 1984) after section 48(n) in subsection (q)(1), and

(7)

by inserting (as in effect before the enactment of the Tax Reform Act of 1984) after section 41 in subsection (q)(3).

(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, 2011.

(2)

Technical corrections

The amendments made by subsection (c) shall take effect on the date of the enactment of this Act.

3.

Enhanced research credit for domestic manufacturers

(a)

In general

Section 41, as amended by section 3, is amended by redesignating subsection (f) as subsection (g) and by inserting after subsection (e) the following new subsection:

(f)

Enhanced credit for domestic manufacturers

(1)

In general

In the case of a qualified domestic manufacturer, this section shall be applied by increasing the 20 percent amount in subsection (a)(1) by the bonus amount.

(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 gross receipts which are domestic production gross receipts is:The bonus amount is:
More than 50 percent and not more than 60 percent2 percentage points
More than 60 percent and not more than 70 percent4 percentage points
More than 70 percent and not more than 80 percent6 percentage points
More than 80 percent and not more than 90 percent8 percentage points
More than 90 percent10 percentage points.

.

(b)

Effective date

The amendment made by this section shall apply to expenditures paid or incurred in taxable years beginning after December 31, 2011.

4.

Research credit made refundable for small businesses

(a)

In general

Subsection (a) of section 41 of the Internal Revenue Code of 1986, as amended by section 3, is amended by adding at the end the following new paragraph:

(3)

Portion of credit refundable

(A)

In general

For purposes of subsections (b) and (c) of section 6401, the amount of the credit determined under this section which is attributable to a qualified small business shall be treated as a credit allowed under subpart C of part IV of subchapter A for the taxable year (and not under any other subpart). For purposes of section 6425, any amount treated as so allowed shall be treated as a payment of estimated income tax for the taxable year.

(B)

Qualified small business

For purposes of this paragraph, the term qualified small business means, with respect to any taxable year, any person if the annual average number of employees employed by such person during such taxable year is 500 or fewer.

.

(b)

Conforming amendment

Section 1324(b)(2) of title 31, United States Code, is amended by inserting 41(a)(3), after 36A,.

(c)

Effective date

The amendments made by this section shall apply to taxable years beginning after December 31, 2011.

5.

Extension of grants for specified energy property in lieu of tax credits

(a)

In general

Subsection (a) of section 1603 of division B of the American Recovery and Reinvestment Act of 2009 is amended—

(1)

in paragraph (1), by striking or 2011 and inserting 2011, or 2012, and

(2)

in paragraph (2)—

(A)

by striking after 2011 and inserting after 2012, and

(B)

by striking or 2011 and inserting 2011, or 2012.

(b)

Conforming amendment

Subsection (j) of section 1603 of division B of such Act is amended by striking 2012 and inserting 2013.

6.

Extension of the advanced energy project credit

(a)

In general

Subsection (d) of section 48C is amended by adding at the end the following new paragraph:

(6)

Additional 2011 allocations

(A)

In general

Not later than 180 days after the date of the enactment of this paragraph, the Secretary, in consultation with the Secretary of Energy, shall establish a program to consider and award certifications for qualified investments eligible for credits under this section to qualifying advanced energy project sponsors with respect to applications received on or after the date of the enactment of this paragraph.

(B)

Limitation

The total amount of credits that may be allocated under the program described in subparagraph (A) shall not exceed the 2011 allocation amount reduced by so much of the 2011 allocation amount as is taken into account as an increase in the limitation described in paragraph (1)(B).

(C)

Application of certain rules

Rules similar to the rules of paragraphs (2), (3), (4), and (5) shall apply for purposes of the program described in subparagraph (A), except that—

(i)

Certification

Applicants shall have 2 years from the date that the Secretary establishes such program to submit applications.

(ii)

Selection criteria

For purposes of paragraph (3)(B)(i), the term domestic job creation (both direct and indirect) means the creation of direct jobs in the United States producing the property manufactured at the manufacturing facility described under subsection (c)(1)(A)(i), and the creation of indirect jobs in the manufacturing supply chain for such property in the United States.

(iii)

Review and redistribution

The Secretary shall conduct a separate review and redistribution under paragraph (5) with respect to such program not later than 4 years after the date of the enactment of this paragraph.

(D)

2011 allocation amount

For purposes of this subsection, the term 2011 allocation amount means $5,000,000,000.

(E)

Direct payments

In lieu of any qualifying advanced energy project credit which would otherwise be determined under this section with respect to an allocation to a taxpayer under this paragraph, the Secretary shall, upon the election of the taxpayer, make a grant to the taxpayer in the amount of such credit as so determined. Rules similar to the rules of section 50 shall apply with respect to any grant made under this subparagraph.

.

(b)

Portion of 2011 allocation allocated toward pending applications under original program

Subparagraph (B) of section 48C(d)(1) is amended by inserting (increased by so much of the 2011 allocation amount (not in excess of $1,500,000,000) as the Secretary determines necessary to make allocations to qualified investments with respect to which qualifying applications were submitted before the date of the enactment of paragraph (6)) after $2,300,000,000.

(c)

Conforming amendment

Paragraph (2) of section 1324(b) of title 31, United States Code, is amended by inserting 48C(d)(6)(E), after 36C,.