S.2165 - High Technology Research and Scientific Education Act of 198398th Congress (1983-1984)
|Sponsor:||Sen. Danforth, John C. [R-MO] (Introduced 11/18/1983)|
|Committees:||Senate - Finance|
|Latest Action:||Senate - 02/24/1984 Subcommittee on Taxation and Debt Management. Hearings held. Hearings printed: S.Hrg. 98-843. (All Actions)|
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Summary: S.2165 — 98th Congress (1983-1984)All Information (Except Text)
Introduced in Senate (11/18/1983)
High Technology Research and Scientific Education Act of 1983 - Title I: The Credit for Increasing Research Activities; ACRS for R&D Equipment - Amends the Internal Revenue Code to make permanent the tax credit for research and development (R&D) expenditures. Modifies the definition of qualified research for purposes of the R&D credit to narrow the category of eligible activities for which the credit is allowable. Makes depreciation of research equipment eligible for the R&D credit. Eliminates the special three-year accelerated cost recovery system (ACRS) category for research equipment. Increases contract research expenses eligible for R&D credit purposes to 75 percent of the amount paid to others for research on the taxpayer's behalf.
Provides that in-house and contract research expenses paid or incurred by a regular corporation will constitute qualified research expenses for R&D credit purposes. Provides that in the case of research being conducted in partnership form, the "in carrying on" test is applied at the partnership level, and the credit is apportioned among the partners in accordance with general partnership rules.
Title II: Promotion of University Research and Scientific Education - Establishes a new income tax credit equal to 25 percent of payments to universities for basic research which exceed a fixed, maintenance-of-effort floor. Calculates the maintenance-of-effort floor as the greater of the annual average of university basic research payments over 1982-1983 or one percent of the average annual R&D budget over 1981-1983. Treats the portion of the university basic research payments which is not in excess of the maintenance-of-effort floor as contract research expenses eligible for purposes of computing the regular incremental R&D credit.
Allows corporations an income tax deduction for contributions of scientific and technical property or services to an institution of higher education. Defines scientific property to mean computer software or other equipment used in a trade or business, which is donated for the direct education of students and faculty, for research and experimentation, or for research training in the United States in mathematics, the physical or biological sciences, engineering, or computer science.
Sets forth a formula for determining the amount of the allowable deduction for contributions of scientific property or services. Limits the amount of such deduction to ten percent of taxable income computed without regard to specified deductions.
Provides for an income tax exclusion for the scholarships, fellowship grants, student loan forgiveness, or stipends of a graduate student in mathematics, engineering, computer science, or the physical or biological sciences. Specifies that such tax exclusion is not forfeited merely because the student is required, as a condition of the scholarship or fellowship, to perform future service in teaching or research.