The American Research and Competitiveness Act of 2014 () is a bill that would amend the Internal Revenue Code to modify the calculation method and the rate for the tax credit for qualified research expenses that expired at the end of 2013 and would make that modified credit permanent. The bill was introduced into the United States House of Representatives during the 113th United States Congress. On May 9, 2014, the bill passed the House. It was received by the Senate on May 12, 2014, but as of December 21 it had not been placed on the calendar. Background The Research & Experimentation Tax Credit or the R&D Tax Credit is a general business tax credit for companies that are incurring R&D expenses in the United States. The R&D Tax Credit was originally introduced in the Economic Recovery Tax Act of 1981 sponsored by U.S. Representative Jack Kemp and U.S. Senator William Roth. Since the credit's original expiration date of December 31, 1985, the credit has expired eight times and has been extended fourteen times. The current extension expired on December 31, 2013. Provisions of the bill This summary is based largely on the summary provided by the Congressional Research Service, a public domain source. The American Research and Competitiveness Act of 2014 would amend the Internal Revenue Code to establish a permanent research tax credit that allows for: (1) 20% of the qualified or basic research expenses that exceed 50% of the average qualified or basic research expenses for the 3 preceding taxable years, and (2) 20% of amounts paid to an energy research consortium for energy research. The bill would reduce such credit rate to 10% if a taxpayer has no qualified research expenses in any one of the 3 preceding taxable years. Congressional Budget Office report This summary is based largely on the summary provided by the Congressional Budget Office, as ordered reported by the House Committee on Ways and Means on April 29, 2014. This is a public domain source. H.R. 4438 would amend the Internal Revenue Code to modify the calculation method and the rate for the tax credit for qualified research expenses that expired at the end of 2013. The modified credit would be made permanent. The bill would not extend the traditional calculation method and its associated 20 percent credit. It would, however, make permanent the “alternative simplified method” for calculating the tax