,,ii #aacth ,,congress #b;d ,session ,s4 #aibj ,,in ,,the ,,senate ,,of ,,the ,,united ,,states ,january #ad1 #bjad,mr4 ,roberts 7for himself and ,mr4 ,coons7 introduced the following bill2 which was read twice and referred to the ,committee on ,finance ,a ,,bill ,to amend the ,internal ,revenue ,code of #aihf to extend and modify the research and development credit to encourage innovation4 #a4 ,short title ,this ,act may be cited as the ,innovators ,job ,creation ,act4 #b4 ,permanent extension 7a7 ,in general ,section #da of the ,internal ,revenue ,code of #aihf is amended by striking subsection 7h7 and inserting the following3 7h7 ,termination of alternative incremental credit ,no election under subsection 7c77#d7 shall apply to taxable years beginning after ,december #ca1 #bjjh4 4 7b7 ,effective date ,the amendment made by this section shall apply to amounts paid or incurred after ,december #ca1 #bjac4 #c4 ,credit allowed against alternative minimum tax ,subparagraph 7,b7 of section #ch7;c77#d7 of the ,internal ,revenue ,code of #aihf is amended-- 7#a7 by redesignating clauses 7ii71 7iii71 7iv71 7v71 7vi71 7vii71 7viii71 and 7ix7 as clauses 7iii71 7iv71 7v71 7vi71 7vii71 7viii71 7ix71 and 7x71 respectively1 and 7#b7 by inserting after clause 7i7 the following new clause3 7ii7 the credit determined under section #da to the extent attributable to amounts paid or incurred after ,december #ca1 #bjac1 4 #d4 ,permanent #e-year carryback for research credits of small businesses 7a7 ,in general ,paragraph 7#d7 of section #ci7;a7 of the ,internal ,revenue ,code of #aihf is amended to read as follows3 7#d7 #e-year carryback for research credits of small businesses ,notwithstanding subsection 7d71 in the case of credits determined under section #da with respect to an eligible small business 7as defined in section #ch7;c77#e77;,c77 in taxable years beginning after ,december #ca1 #bjac-- 7,a7 paragraph 7#a7 shall be applied by substituting each of the #e taxable years for the taxable year in subparagraph 7,a7 thereof1 and 7,b7 paragraph 7#b7 shall be applied-- 7i7 by substituting #be taxable years for #ba taxable years in subparagraph 7,a7 thereof1 and 7ii7 by substituting #bd taxable years for #bj taxable years in subparagraph 7,b7 thereof4 4 7b7 ,effective date ,the amendment made by this section shall apply to taxable years beginning after ,december #ca1 #bjac4 #e4 ,election permitted on amended return 7a7 ,in general ,paragraph 7#e7 of section #da7;c7 of the ,internal ,revenue ,code of #aihf is amended by adding at the end the following new subparagraph3 7,d7 ,special rule regarding timing of election ,an election under this paragraph may be made by means of an amendment to the return of tax for the taxable year for which made4 4 7b7 ,effective date ,the amendment made by this section shall apply to taxable years beginning after ,december #ca1 #bjac4 #f4 ,treatment of research credit for certain startup companies 7a7 ,in general 7#a7 ,in general ,section #da of the ,internal ,revenue ,code of #aihf is amended by adding at the end the following new subsection3 7i7 ,treatment of credit to qualified small businesses 7#a7 ,in general ,at the election of a qualified small business1 the payroll tax credit portion of the credit determined under subsection 7a7 shall be treated as a credit allowed under section #caaa7;f7 7and not under this section74 7#b7 ,payroll tax credit portion ,for purposes of this subsection1 the payroll tax credit portion of the credit determined under subsection 7a7 for any taxable year is so much of such credit as does not exceed #bej1jjj4 7#c7 ,qualified small business ,for purposes of this subsection-- 7,a7 ,in general ,the term qualified small business means1 with respect to any taxable year-- 7i7 a corporation1 partnership1 or ,s corporation if-- 7,i7 the gross receipts 7as determined under subsection 7c77#g77 of such entity for the taxable year is less than #e1jjj1jjj1 and 7,,ii7 such entity did not have gross receipts 7as so determined7 for any period preceding the #e-taxable-year period ending with such taxable year1 and 7ii7 any person not described in subparagraph 7,a7 if clauses 7i7 and 7ii7 of subparagraph 7,a7 applied to such person1 determined-- 7,i7 by substituting person for entity each place it appears71 and 7,,ii7 in the case of an individual1 by only taking into account the aggregate gross receipts received by such individual in carrying on trades or businesses of such individual4 7,b7 ,limitation ,such term shall not include an organization which is exempt from taxation under section #eja4 7#d7 ,election 7,a7 ,in general ,in the case of a partnership or ,s corporation1 an election under this subsection shall be made at the entity level4 7,b7 ,revocation ,an election under this subsection may not be revoked without the consent of the ,secretary4 7,c7 ,limitation ,a taxpayer may not make an election under this subsection if such taxpayer has made an election under this subsection for #e or more preceding taxable years4 7#e7 ,aggregation rules ,for purposes of determining the #bej1jjj limitation under paragraph 7#b7 and determining gross receipts under paragraph 7#c71 all members of the same controlled group of corporations 7within the meaning of section #bfg7;f77 and all persons under common control 7within the meaning of section #eb7;b7 but determined by treating an interest of more than #ej percent as a controlling interest7 shall be treated as #a person4 7#f7 ,regulations ,the ,secretary shall prescribe such regulations as may be necessary to carry out the purposes of this subsection1 including-- 7,a7 regulations to prevent the avoidance of the purposes of paragraph 7#c7 through the use of successor companies or other means1 7,b7 regulations to minimize compliance and record-keeping burdens under this subsection for start-up companies1 and 7,c7 regulations for recapturing the benefit of credits determined under section #caaa7;f7 in cases where there is a subsequent adjustment to the payroll tax credit portion of the credit determined under subsection 7a71 including requiring amended returns in the cases where there is such an adjustment4 4 7#b7 ,conforming amendment ,section #bhj;,c7c7 of the ,internal ,revenue ,code of #aihf is amended by adding at the end the following new paragraph3 7#e7 ,treatment of qualified small business credit ,for purposes of determining the amount of any credit under section #da7;a7 under this subsection1 any election under section #da7;i7 shall be disregarded4 4 7b7 ,credit allowed against ,,fica taxes 7#a7 ,in general ,section #caaa of the ,internal ,revenue ,code of #aihf is amended by adding at the end the following new subsection3 7f7 ,credit for research expenditures of qualified small businesses 7#a7 ,in general ,in the case of a qualified small business which has made an election under section #da7;i71 there shall be allowed as a credit against the tax imposed by subsection 7a7 on wages paid with respect to the employment of all employees of the qualified small business for days in an applicable calendar quarter an amount equal to the payroll tax credit portion of the research credit determined under section #da7;a74 7#b7 ,carryover of unused credit ,in any case in which the payroll tax credit portion of the research credit determined under section #da7;a7 exceeds the tax imposed under subsection 7a7 for an applicable calendar quarter-- 7,a7 the succeeding calendar quarter shall be treated as an applicable calendar quarter1 and 7,b7 the amount of credit allowed under paragraph 7#a7 shall be reduced by the amount of credit allowed under such paragraph for all preceding applicable calendar quarters4 7#c7 ,allocation of credit for controlled groups1 etc ,in determining the amount of the credit under this subsection-- 7,a7 all persons treated as a single taxpayer under section #da shall be treated as a single taxpayer under this section1 and 7,b7 the credit 7if any7 allowable by this section to each such member shall be its proportionate share of the qualified research expenses1 basic research payments1 and amounts paid or incurred to energy research consortiums1 giving rise to the credit allowable under section #da4 7#d7 ,definitions ,for purposes of this subsection-- 7,a7 ,applicable calendar quarter ,the term applicable calendar quarter means-- 7i7 the first calendar quarter following the date on which the qualified small business files a return under section #fjab for the taxable year for which the payroll tax credit portion of the research credit under section #da7;a7 is determined1 and 7ii7 any succeeding calendar quarter treated as an applicable calendar quarter under paragraph 7#b77;,a74 ,for purposes of determining the date on which a return is filed1 rules similar to the rules of section #feac shall apply4 7,b7 ,other terms ,any term used in this subsection which is also used in section #da shall have the meaning given such term under section #da4 4 7#b7 ,transfers to federal old-age and survivors insurance trust fund ,there are hereby appropriated to the ,federal ,old-,age and ,survivors ,trust ,fund and the ,federal ,disability ,insurance ,trust ,fund established under section #bja of the ,social ,security ,act 7#db ,u4,s4,c4 #dja7 amounts equal to the reduction in revenues to the ,treasury by reason of the amendments made by paragraph 7#a74 ,amounts appropriated by the preceding sentence shall be transferred from the general fund at such times and in such manner as to replicate to the extent possible the transfers which would have occurred to such ,trust ,fund had such amendments not been enacted4 7c7 ,effective date ,the amendments made by this section shall apply to taxable years beginning after ,december #ca1 #bjac4