[Congressional Bills 112th Congress]
[From the U.S. Government Publishing Office]
[H.R. 6109 Introduced in House (IH)]
112th CONGRESS
2d Session
H. R. 6109
To amend the Internal Revenue Code of 1986 to extend the research and
development tax credit, to limit treaty benefits with respect to
certain deductible related-party payments, and to treat general
aviation aircraft as 7-year property.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
July 12, 2012
Mr. Levin (for himself, Mr. Rangel, Mr. McDermott, Mr. Lewis of
Georgia, Mr. Neal, Mr. Becerra, Mr. Blumenauer, Mr. Kind, Mr. Pascrell,
Mr. Crowley, and Ms. Berkley) introduced the following bill; which was
referred to the Committee on Ways and Means
_______________________________________________________________________
A BILL
To amend the Internal Revenue Code of 1986 to extend the research and
development tax credit, to limit treaty benefits with respect to
certain deductible related-party payments, and to treat general
aviation aircraft as 7-year property.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Investing in American Innovation Act
of 2012''.
SEC. 2. EXTENSION OF RESEARCH AND DEVELOPMENT TAX CREDIT.
(a) In General.--Subparagraph (B) of section 41(h)(1) of the
Internal Revenue Code of 1986 is amended by striking ``December 31,
2011'' and inserting ``December 31, 2012''.
(b) Conforming Amendment.--Subparagraph (D) of section 45C(b)(1) of
such Code is amended by striking ``December 31, 2011'' and inserting
``December 31, 2012''.
(c) Effective Date.--The amendments made by this section shall
apply to amounts paid or incurred after December 31, 2011.
SEC. 3. LIMITATION ON TREATY BENEFITS FOR CERTAIN DEDUCTIBLE PAYMENTS.
(a) In General.--Section 894 of the Internal Revenue Code of 1986
is amended by adding at the end the following new subsection:
``(d) Limitation on Treaty Benefits for Certain Deductible
Payments.--
``(1) In general.--In the case of any deductible related-
party payment, any withholding tax imposed under chapter 3 (and
any tax imposed under subpart A or B of this part) with respect
to such payment may not be reduced under any treaty of the
United States unless any such withholding tax would be reduced
under a treaty of the United States if such payment were made
directly to the foreign parent corporation.
``(2) Deductible related-party payment.--For purposes of
this subsection, the term `deductible related-party payment'
means any payment made, directly or indirectly, by any person
to any other person if the payment is allowable as a deduction
under this chapter and both persons are members of the same
foreign controlled group of entities.
``(3) Foreign controlled group of entities.--For purposes
of this subsection--
``(A) In general.--The term `foreign controlled
group of entities' means a controlled group of entities
the common parent of which is a foreign corporation.
``(B) Controlled group of entities.--The term
`controlled group of entities' means a controlled group
of corporations as defined in section 1563(a)(1),
except that--
``(i) `more than 50 percent' shall be
substituted for `at least 80 percent' each
place it appears therein, and
``(ii) the determination shall be made
without regard to subsections (a)(4) and (b)(2)
of section 1563.
A partnership or any other entity (other than a
corporation) shall be treated as a member of a
controlled group of entities if such entity is
controlled (within the meaning of section 954(d)(3)) by
members of such group (including any entity treated as
a member of such group by reason of this sentence).
``(4) Foreign parent corporation.--For purposes of this
subsection, the term `foreign parent corporation' means, with
respect to any deductible related-party payment, the common
parent of the foreign controlled group of entities referred to
in paragraph (3)(A).
``(5) Regulations.--The Secretary may prescribe such
regulations or other guidance as are necessary or appropriate
to carry out the purposes of this subsection, including
regulations or other guidance which provide for--
``(A) the treatment of two or more persons as
members of a foreign controlled group of entities if
such persons would be the common parent of such group
if treated as one corporation, and
``(B) the treatment of any member of a foreign
controlled group of entities as the common parent of
such group if such treatment is appropriate taking into
account the economic relationships among such
entities.''.
(b) Effective Date.--The amendment made by this section shall apply
to payments made after the date of the enactment of this Act.
SEC. 4. GENERAL AVIATION AIRCRAFT TREATED AS 7-YEAR PROPERTY.
(a) In General.--Subparagraph (C) of section 168(e)(3) of the
Internal Revenue Code of 1986 is amended by striking ``and'' at the end
of clause (iv), by redesignating clause (v) as clause (vi), and by
inserting after clause (iv) the following new clause:
``(v) any general aviation aircraft, and''.
(b) Class Life.--Paragraph (3) of section 168(g) of such Code is
amended by inserting after subparagraph (E) the following new
subparagraph:
``(F) General aviation aircraft.--In the case of
any general aviation aircraft, the recovery period used
for purposes of paragraph (2) shall be 12 years.''.
(c) General Aviation Aircraft.--Subsection (i) of section 168 such
Code is amended by inserting after paragraph (19) the following new
paragraph:
``(20) General aviation aircraft.--The term `general
aviation aircraft' means any airplane or helicopter (including
airframes and engines) not used in commercial or contract
carrying of passengers or freight, but which primarily engages
in the carrying of passengers.''.
(d) Effective Date.--This section shall be effective for property
placed in service after December 31, 2012.
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