Kevin Brady, a Republican member of the House of Representatives from Texas, introduced a bill on March 8, 2011 that would extend the Research Tax Credit through December 31, 2012. The bill entitled H.R. 942 – American Research and Competitiveness Act of 2011, has 45 co-sponsors comprised of both Republicans and Democrats, including Richard Neal [D-MA] and Tom Price [R-GA].
The bill, which was referred to the House Committee on Ways and Means, includes a major change to the Internal Revenue Code of 1986. If approved by Congress and the President, the bill would increase the credit relating to the “alternative simplified credit” (ASC) computation method from 14% to 20%. The amendment of the regulations regarding the ASC credit calculation would apply to taxable years after December 31, 2010.