On May 3, 2011, Democratic House Member John Carney of Delaware introduced a bill that would make the Research Tax Credit permanent. The bill entitled H.R. 1693 – Research and Development Tax Credit Extension Act of 2011, is co-sponsored by Republican Jim Renacci of Ohio.
The bill, which was referred to the House Committee on Ways and Means, contains two major changes of the Internal Revenue Code of 1986. If approved by Congress and the President, the bill would make the Research Tax Credit permanent and it would increase the credit relating to the “alternative simplified credit” (ASC) computation method from 14% to 17%.
Since its enactment as a temporary provision in 1981, the Research Tax Credit tax credit has been extended, with modifications, thirteen times. President Obama as well as many members of Congress has proposed making Research Tax Credit permanent effective January 1, 2010.