,i #aac? ,,congress #b;d ,session ,h4 ,r4 #dfif ,,9 ,,! ,,h\se ,,( ,,repres5tatives ,may #ba1 #bjad ,mr4 ,g]la* 7= himself1 ,mr4 ,k9d1 ,mr4 ,kelly ( ,p5nsylvania1 & ,mr4 ,pet]s ( ,mi*igan7 introduc$ ! foll[+ bill2 :i* 0 ref]r$ to ! ,committee on ,ways & ,means ,a ,,bill ,to am5d ! ,int]nal ,rev5ue ,code ( #aihf to provide = />tup bus9esses to use a portion ( ! rese>* & developm5t cr$it to (fset payroll taxes4 #a4 ,%ort title ,?is ,act may be cit$ z ! ,/>tup ,innovation ,cr$it ,act ( #bjad4 #b4 ,treatm5t ( rese>* cr$it = c]ta9 />tup companies 7a7 ,9 g5]al ,section #da ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$ by add+ at ! end ! foll[+ new subsection3 7i7 ,treatm5t ( cr$it = qualifi$ small bus9esses 7#a7 ,9 g5]al ,at ! election ( a qualifi$ small bus9ess = any taxable ye>1 section #caaa7;f7 %all apply to ! payroll tax cr$it portion ( ! cr$it o!rwise det]m9$ "u subsection 7a7 = ! taxable ye> & su* portion %all n be treat$ 7o!r ?an = purposes ( section #bhj;,c7 z a cr$it det]m9$ "u subsection 7a74 7#b7 ,payroll tax cr$it portion ,= purposes ( ?is subsection1 ! payroll tax cr$it portion ( ! cr$it det]m9$ "u subsection 7a7 ) respect to any qualifi$ small bus9ess = any taxable ye> is ! lea/ (-- 7,a7 ! am\nt specifi$ 9 ! election made "u ?is subsection1 7,b7 ! cr$it det]m9$ "u subsection 7a7 = ! taxable ye> 7det]m9$ be=e ! application ( ?is subsection71 or 7,c7 9 ! case ( a qualifi$ small bus9ess o!r ?an a p>tn]%ip or ,s corporation1 ! am\nt ( ! bus9ess cr$it c>ry=w>d "u section #ci c>ri$ f ! taxable ye> 7det]m9$ be=e ! application ( ?is subsection to ! taxable ye>74 7#c7 ,qualifi$ small bus9ess ,= purposes ( ?is subsection-- 7,a7 ,9 g5]al ,! t]m qualifi$ small bus9ess means1 ) respect to any taxable ye>-- 7i7 a corporation or p>tn]%ip1 if-- 7,i7 ! gross receipts 7z det]m9$ "u ! rules ( section #ddh7;c77#c71 )\t reg>d to subp>agraph 7,a7 !re(7 ( su* entity = ! taxable ye> is less ?an #e1jjj1jjj1 & 7,,ii7 su* entity did n h gross receipts 7z s det]m9$7 = any taxable ye> prec$+ ! #e-taxable-ye> p]iod end+ ) su* taxable ye>1 & 7ii7 any p]son 7o!r ?an a corporation or p>tn]%ip7 :o meets ! requirem5ts ( subclauses 7,i7 & 7,,ii7 ( clause 7i71 det]m9$-- 7,i7 by sub/itut+ p]son = entity ea* place x appe>s1 & 7,,ii7 by only tak+ into acc\nt ! aggregate gross receipts receiv$ by su* p]son 9 c>ry+ on all trades or bus9esses ( su* p]son4 7,b7 ,limitation ,su* t]m %all n include an organization :i* is exempt f taxation "u section #eja4 7#d7 ,election 7,a7 ,9 g5]al ,any election "u ?is subsection = any taxable ye>-- 7i7 %all specify ! am\nt ( ! cr$it to :i* su* election applies1 7ii7 %all be made on or be=e ! due date 7includ+ ext5sions7 (-- 7,i7 9 ! case ( a qualifi$ small bus9ess :i* is a p>tn]%ip1 ! return requir$ to be fil$ "u section #fjca1 7,,ii7 9 ! case ( a qualifi$ small bus9ess :i* is an ,s corporation1 ! return requir$ to be fil$ "u section #fjcg1 & 7,,iii7 9 ! case ( any o!r qualifi$ small bus9ess1 ! return ( tax = ! taxable ye>1 & 7iii7 may be revok$ only ) ! cons5t ( ! ,secret>y4 7,b7 ,limitations 7i7 ,am\nt ,! am\nt specifi$ 9 any election made "u ?is subsection %all n exce$ #bej1jjj4 7ii7 ,numb] ( taxable ye>s ,a p]son may n make an election "u ?is subsection if su* p]son 7or any o!r p]son treat$ z a s+le taxpay] ) su* p]son "u p>agraph 7#e77;,a77 has made an election "u ?is subsection = #e or m prec$+ taxable ye>s4 7,c7 ,special rule = p>tn]%ips & ,s corporations ,9 ! case ( a qualifi$ small bus9ess :i* is a p>tn]%ip or ,s corporation1 ! election made "u ?is subsection %all be made at ! entity level4 7#e7 ,aggregation rules 7,a7 ,9 g5]al ,except z provid$ 9 subp>agraph 7,b71 all p]sons or entities treat$ z a s+le taxpay] "u subsection 7f77#a7 %all be treat$ z a s+le taxpay] = purposes ( ?is subsection4 7,b7 ,special rules ,= purposes ( ?is subsection & section #caaa7;f7-- 7i7 ea* ( ! p]sons treat$ z a s+le taxpay] "u subp>agraph 7,a7 may sep>ately make ! election "u p>agraph 7#a7 = any taxable ye>1 & 7ii7 ! #bej1jjj am\nt "u p>agraph 7#d77;,b77i7 %all be allocat$ among all p]sons treat$ z a s+le taxpay] "u subp>agraph 7,a7 9 ! same mann] z "u subp>agraph 7,a77ii7 or 7,b77ii7 ( subsection 7f77#a71 :i*ev] is applicable4 7#f7 ,regulations ,! ,secret>y %all prescribe su* regulations z may be necess>y to c>ry out ! purposes ( ?is subsection1 includ+-- 7,a7 regulations to prev5t ! avoidance ( ! purposes ( ! limitations & aggregation rules "u ?is subsection ?r\gh ! use ( successor companies or o!r means1 7,b7 regulations to m9imize compliance & recordkeep+ burd5s "u ?is subsection1 & 7,c7 regulations = recaptur+ ! b5efit ( cr$its det]m9$ "u section #caaa7;f7 9 cases :]e !re is a subsequ5t adju/m5t to ! payroll tax cr$it portion ( ! cr$it det]m9$ "u subsection 7a71 includ+ requir+ am5d$ income tax returns 9 ! cases :]e !re is su* an adju/m5t4 4 7b7 ,cr$it all[$ aga9/ ,,fica taxes ,section #caaa ( su* ,code is am5d$ by add+ at ! end ! foll[+ new subsection3 7f7 ,cr$it = rese>* exp5ditures ( qualifi$ small bus9esses 7#a7 ,9 g5]al ,9 ! case ( a taxpay] :o has made an election "u section #da7;i7 = a taxable ye>1 !re %all be all[$ z a cr$it aga9/ ! tax impos$ by subsection 7a7 = ! fir/ cal5d> qu>t] :i* beg9s aft] ! date on :i* ! taxpay] files ! return specifi$ 9 section #da7;i77#d77;,a77ii7 an am\nt equal to ! payroll tax cr$it portion det]m9$ "u section #da7;i77#b74 7#b7 ,limitation ,! cr$it all[$ by p>agraph 7#a7 %all n exce$ ! tax impos$ by subsection 7a7 = any cal5d> qu>t] on ! wages paid ) respect to ! employm5t ( all individuals 9 ! employ ( ! employ]4 7#c7 ,c>ryov] ( unus$ cr$it ,if ! am\nt ( ! cr$it "u p>agraph 7#a7 exce$s ! limitation ( p>agraph 7#b7 = any cal5d> qu>t]1 su* excess %all be c>ri$ to ! succe$+ cal5d> qu>t] & all[$ z a cr$it "u p>agraph 7#a7 = su* qu>t]4 7#d7 ,d$uction all[$ = cr$it$ am\nts ,! cr$it all[$ "u p>agraph 7#a7 %all n be tak5 into acc\nt = purposes ( det]m9+ ! am\nt ( any d$uction all[$ "u *apt] #a = taxes impos$ "u subsection 7a74 4 7c7 ,effective date ,! am5dm5ts made by ?is section %all apply to cr$its det]m9$ = taxable ye>s beg9n+ aft] ,decemb] #ca1 #bjac4