1695 AMH MCIN MITC 072

HB 1695 - H AMD 308

By Representative McIntire

   On page 1, line 12, after "amount of" insert "incremental"

   On page 1, line 14, strike "amounts" and insert "((amounts)) incremental qualified research and development expenditures"

   On page 2, beginning on line 2, after "by" strike all material through "1.50" on line 16 and insert the following:

   "((the following:

   (i) For the period June 10, 2004, through December 31, 2006, the person's average tax rate for the calendar year for which the credit is claimed;

   (ii) For the calendar year ending December 31, 2007, the greater of the person's average tax rate for that calendar year or 0.75 percent;

   (iii) For the calendar year ending December 31, 2008, the greater of the person's average tax rate for that calendar year or 1.0 percent;

   (iv) For the calendar year ending December 31, 2009, the greater of the person's average tax rate for that calendar year or 1.25 percent;

   (v) For the calendar year ending December 31, 2010, and thereafter, 1.50)) 15.0"

   On page 5, line 11, after "(b)" insert ""Incremental qualified research and development expenditures" means the amount of qualified research and development expenditures, or the amount received in compensation for the same, for the current reporting period, less the average amount expended, or received in compensation, in reporting periods for the three prior calendar years.

   (c)"

   On page 5, line 21, strike "(c)" and insert "(((c))) (d)"

   On page 5, line 23, strike "(d)" and insert "(((d))) (e)"

   On page 5, line 27, strike "(e)" and insert "(((e))) (f)"

   Correct internal references accordingly.

   EFFECT: Provides R&D tax credit equal to 15 percent of the increase in R&D expenditures.