H.R. 4438House113th Congress (2013-2015)Passed House

American Research and Competitiveness Act of 2014

Introduced April 9, 2014

Legislative Activity

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23 earlier actions
SenateIntro Referral Latest Action

Received in the Senate.

May 12, 2014

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HouseIntro Referral

Introduced in House

April 9, 2014

HouseIntro Referral

Referred to the House Committee on Ways and Means.

April 9, 2014

HouseCommittee

Committee Consideration and Mark-up Session Held.

April 29, 2014

HouseCommittee

Ordered to be Reported in the Nature of a Substitute (Amended) by the Yeas and Nays: 22 - 12.

April 29, 2014

HouseCommittee

Reported (Amended) by the Committee on Ways and Means. H. Rept. 113-431.

May 2, 2014

HouseCalendars

Placed on the Union Calendar, Calendar No. 319.

May 2, 2014

HouseFloor

Rules Committee Resolution H. Res. 569 Reported to House. Rule provides for consideration of H.R. 4438 with 1 hour and 30 minutes of general debate. Previous question shall be considered as ordered without intervening motions except motion to recommit with or without instructions. Measure will be considered read. Bill is closed to amendments. All points of order against consideration of the bill are waived. The amendment in the nature of a substitute recommended by the Committee on Ways and Means now printed in the bill shall be considered as adopted.

May 6, 2014 • 10:33 PM

HouseFloor

Rule H. Res. 569 passed House.

May 7, 2014 • 4:02 PM

HouseFloor

Considered under the provisions of rule H. Res. 569. (consideration: CR H3980-3985; text of measure as reported in House: CR H3980-3981)

May 8, 2014 • 5:25 PM

HouseFloor

Rule provides for consideration of H.R. 4438 with 1 hour of general debate. Previous question shall be considered as ordered without intervening motions except motion to recommit with or without instructions. Measure will be considered read. Bill is closed to amendments. All points of order against consideration of the bill are waived. The amendment in the nature of a substitute recommended by the Committee on Ways and Means now printed in the bill shall be considered as adopted.

May 8, 2014 • 5:25 PM

HouseFloor

DEBATE - The House proceeded with one hour of debate on H.R. 4438.

May 8, 2014 • 5:26 PM

HouseFloor

POSTPONED PROCEEDINGS - The Chair announced that pursuant to clause 1(c) of rule 19, further proceedings on H.R. 4438 would be postponed.

May 8, 2014 • 6:03 PM

HouseFloor

Considered as unfinished business. (consideration: CR H3985-3988)

May 8, 2014 • 6:32 PM

HouseFloor

DEBATE - The House resumed with the remaining 28 and 3/4 minutes of debate.

May 8, 2014 • 6:32 PM

HouseFloor

The previous question was ordered pursuant to the rule. (consideration: CR H3988)

May 8, 2014 • 6:52 PM

HouseFloor

Considered as unfinished business. (consideration: CR H4021-4023)

May 9, 2014 • 9:15 AM

HouseFloor

Mrs. Kirkpatrick moved to recommit with instructions to the Committee on Ways and Means. (consideration: CR H4021-4022; text: CR H4021)

May 9, 2014 • 9:15 AM

HouseFloor

DEBATE - The House proceeded with 10 minutes of debate on the Kirkpatrick motion to recommit with instructions. The instructions contained in the motion seek to ensure that businesses can only claim the Research and Development credit for expenses attributable to wages if they: (1) guarantee female employees receive equal pay for equal work; (2) give priority to hiring unemployed Americans, especially veterans; and (3) do not outsource American jobs. Additionally, the motion ensures that the underlying legislation cannot take effect if it increases the deficit.

May 9, 2014 • 9:15 AM

HouseFloor

The previous question on the motion to recommit with instructions was ordered without objection. (consideration: CR H4022)

May 9, 2014 • 9:22 AM

HouseFloor

On motion to recommit with instructions Failed by the Yeas and Nays: 191 - 209 (Roll no. 210).

May 9, 2014 • 9:50 AM

HouseFloor

Passed/agreed to in House: On passage Passed by the Yeas and Nays: 274 - 131 (Roll no. 211).(text: CR 5/8/2014 H3980-3981)

May 9, 2014 • 9:59 AM

HouseFloor

On passage Passed by the Yeas and Nays: 274 - 131 (Roll no. 211). (text: CR 5/8/2014 H3980-3981)

May 9, 2014 • 9:59 AM

HouseFloor

Motion to reconsider laid on the table Agreed to without objection.

May 9, 2014 • 9:59 AM

SenateIntro Referral

Received in the Senate.

May 12, 2014

Floor Debate

20 members

What members said about H.R. 4438 on the floor

6 Republicans14 Democrats
Tom Cole
Rep. Tom ColeR-OK-4 · May 7, 2014

Mr. Speaker, by direction of the Committee on Rules, I call up House Resolution 569 and ask for its immediate consideration. Mr. Speaker, I claim the time in opposition to the point of order in favor…

Jared Polis
Rep. Jared PolisD-CO-2 · May 8, 2014

I thank the gentlelady from North Carolina for yielding me the customary 30 minutes, and I yield myself such time as I may consume. Mr. Speaker, we had the opportunity to have a clean rule around a…

Virginia Foxx
Rep. Virginia FoxxR-NC-5 · May 8, 2014

Mr. Speaker, by direction of the Committee on Rules, I call up House Resolution 576 and ask for its immediate consideration. Mr. Speaker, for the purpose of debate only, I yield the customary 30…

Steny H. Hoyer
Rep. Steny H. HoyerD-MD-5 · May 1, 2014

Mr. Speaker, I rise for the purpose of inquiring about next week's schedule, and I yield to my friend, the majority leader, Mr. Cantor, from Virginia. I thank the gentleman for that information with…

Sheila Jackson Lee
Rep. Sheila Jackson LeeD-TX-18 · May 8, 2014

Mr. Speaker, I am very pleased to come and join in an aspect of our bipartisan work that is working for children, and I thank the Education Committee and Mr. Polis for their leadership in focusing on…

Show 8 more
Ron Kind
Rep. Ron KindD-WI-3 · May 8, 2014

I thank my friend for yielding me this time. Mr. Speaker, I rise in strong support of the goal to permanently extend the research and development tax credit. Our businesses, large and small, need…

Alcee L. Hastings
Rep. Alcee L. HastingsD-FL-20 · May 7, 2014

Mr. Speaker, I yield myself such time as I may consume. I thank the gentleman from Oklahoma for yielding me the customary 30 minutes. While I support research and development incentives and consider…

Eric Cantor
Rep. Eric CantorR-VA-7 · May 1, 2014

Mr. Speaker, I thank the gentleman from Maryland, the Democratic whip, for yielding. Mr. Speaker, on Monday, the House is not in session. On Tuesday, the House will meet at noon for morning hour and…

Chris Van Hollen
Rep. Chris Van HollenD-MD-8 · May 8, 2014

Mr. Speaker, I want to thank my friend and colleague, the ranking member of the Ways and Means Committee, for all the work he has done on tax policy to make sure we have a tax policy that is both…

Dave Camp
Rep. Dave CampR-MI-4 · May 8, 2014

Mr. Speaker, pursuant to House Resolution 569, I call up the bill (H.R. 4438) to amend the Internal Revenue Code of 1986 to simplify and make permanent the research credit, and ask for its immediate…

Chris Van Hollen
Rep. Chris Van HollenD-MD-8 · May 8, 2014

Mr. Speaker, I thank my colleague. I want to start by congratulating the bipartisan effort on the charter school bills. I thank Mr. Polis for his leadership on that. And I wish that was all there was…

Lloyd Doggett
Rep. Lloyd DoggettD-TX-35 · May 7, 2014

Madam Speaker, I support a permanent research and development credit to incentivize research for new products. For decades, there has never really been any question about whether we should…

Dave Camp
Rep. Dave CampR-MI-4 · May 8, 2014

I reserve the balance of my time. Mr. Speaker, I yield myself such time as I may consume. Well, I would just say that the gentleman from Maryland is correct. He has voted six times to extend the…

Show 11 more
Suzanne Bonamici
Rep. Suzanne BonamiciD-OR-1 · May 9, 2014

Mr. Chairman, I have an amendment at the desk. Mr. Chairman, I rise in support of an amendment to H.R. 10, but I want to start by thanking Chairman Kline and Ranking Member Miller for collaborating…

Danny K. Davis
Rep. Danny K. DavisD-IL-7 · May 7, 2014

Mr. Speaker, I raise a point of order against H. Res. 569 because the resolution violates section 426(a) of the Congressional Budget Act. The resolution contains a waiver of all points of order…

Loretta Sanchez
Rep. Loretta SanchezD-CA-46 · May 9, 2014

Mr. Chairman, I have an amendment at the desk. Mr. Chairman, I yield myself as much time as I may consume. Mr. Chairman, innovation is important to our country and to our communities. Innovation and…

Kevin Brady
Rep. Kevin BradyR-TX-8 · May 8, 2014

I thank the chairman for yielding. Mr. Speaker, I was touring a hospital in the Rio Grande Valley the other day, and we were going through the critical care unit, with young babies 25, 26 weeks old…

Sander M. Levin
Rep. Sander M. LevinD-MI-9 · May 7, 2014

Mr. Speaker, this is really not about the R&D tax credit. I have favored it. I continue to favor it. Democrats, indeed, are in favor of tax incentives. Sometimes, we are criticized for that, but that…

James R. Langevin
Rep. James R. LangevinD-RI-2 · May 9, 2014

Mr. Chairman, I have an amendment at the desk. Mr. Chairman, I yield myself such time as I may consume. Mr. Chairman, I would like to, first of all, thank Chairman Kline and Ranking Member Miller for…

Ann Kirkpatrick
Rep. Ann KirkpatrickD-AZ-1 · May 9, 2014

Mr. Speaker, I have a motion to recommit at the desk. I am opposed to it in its current form. Mr. Speaker, this is the final amendment to the bill, which will not kill the bill nor send it back to…

Sheila Jackson Lee
Rep. Sheila Jackson LeeD-TX-18 · May 9, 2014

Mr. Speaker, I rise in strong opposition to H.R. 4438. This bill is the exact opposite of the fiscal conservatism which has been preached by the G.O.P. H.R. 4438, the American Research and…

Suzanne Bonamici
Rep. Suzanne BonamiciD-OR-1 · May 20, 2014

Mr. Speaker, I rise in reluctant opposition to H.R. 4438, a bill to extend permanently the research and development tax credit. This is not an issue that I take lightly because this tax provision…

Nancy Pelosi
Rep. Nancy PelosiD-CA-12 · May 9, 2014

Thank you, Mr. Leader, for yielding. Thank you, Mr. Speaker, for giving the House this opportunity to speak this afternoon about this despicable crime. I thank the distinguished majority leader for…

Glenn Thompson
Rep. Glenn ThompsonR-PA-5 · May 9, 2014

Mr. Chairman, I claim the time in opposition, although I am certainly not opposed to this amendment. Mr. Chairman, I want to thank Chairman Kline and Ranking Member Miller for their work on the…

Bill Text

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Received in SenateIssued May 12, 2014

II

113th CONGRESS

2d Session

H. R. 4438

IN THE SENATE OF THE UNITED STATES

May 12, 2014

Received

AN ACT

To amend the Internal Revenue Code of 1986 to simplify and make permanent the research credit.

1.

Short title

This Act may be cited as the American Research and Competitiveness Act of 2014.

2.

Research credit simplified and made permanent

(a)

In general

Subsection (a) of section 41 of the Internal Revenue Code of 1986 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 of such Code is amended by striking subsection (h).

(c)

Conforming amendments

(1)

Subsection (c) of section 41 of such Code 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 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) of such Code 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) of such Code 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.

3.

PAYGO Scorecard

(a)

Paygo Scorecard

The budgetary effects of this Act shall not be entered on either PAYGO scorecard maintained pursuant to section 4(d) of the Statutory Pay-As-You-Go Act of 2010.

(b)

Senate Paygo Scorecard

The budgetary effects of this Act shall not be entered on any PAYGO scorecard maintained for purposes of section 201 of S. Con. Res. 21 (110th Congress).

Passed the House of Representatives May 9, 2014.

Karen L. Haas,

Clerk