,,ii  #aac? ,,congress  #b;d ,session   
,s4 #aibj  ,,9 ,,! ,,s5ate ,,( ,,!      
,,unit$ ,,/ates  ,janu>y #ad1 #bjad,mr4 
,rob]ts 7= himself & ,mr4 ,coons7       
introduc$ ! foll[+ bill2 :i* 0 read     
twice & ref]r$ to ! ,committee on       
,f9ance  ,a ,,bill  ,to am5d ! ,int]nal 
,rev5ue ,code ( #aihf to ext5d & modify 
! rese>* & developm5t cr$it to enc\rage 
innovation4  #a4 ,%ort title ,?is ,act  
may be cit$ z ! ,innovators ,job        
,creation ,act4  #b4 ,p]man5t ext5sion  
7a7 ,9 g5]al ,section #da ( ! ,int]nal  
,rev5ue ,code ( #aihf is am5d$ by /rik+ 
subsection 7h7 & ins]t+ ! foll[+3  7h7  
,t]m9ation ( alt]native increm5tal cr$it
 ,no election "u subsection 7c77#d7 %all
 apply to taxable ye>s beg9n+ aft]      
,decemb] #ca1 #bjjh4  4  7b7 ,effective 
date ,! am5dm5t made by ?is section %all
 apply to am\nts paid or incurr$ aft]   
,decemb] #ca1 #bjac4  #c4 ,cr$it all[$  
aga9/ alt]native m9imum tax ,subp>agraph
 7,b7 ( section #ch7;c77#d7 ( ! ,int]nal
 ,rev5ue ,code ( #aihf is am5d$-- 7#a7  

by r$esignat+ clauses 7ii71 7iii71 7iv71
 7v71 7vi71 7vii71 7viii71 & 7ix7 z     
clauses 7iii71 7iv71 7v71 7vi71 7vii71  
7viii71 7ix71 & 7x71 respectively1 &    
7#b7 by ins]t+ aft] clause 7i7 ! foll[+ 
new clause3  7ii7 ! cr$it det]m9$ "u    
section #da to ! ext5t attributable to  
am\nts paid or incurr$ aft] ,decemb]    
#ca1 #bjac1  4  #d4 ,p]man5t #e-ye>     
c>ryback = rese>* cr$its ( small        
bus9esses  7a7 ,9 g5]al ,p>agraph 7#d7 (
 section #ci7;a7 ( ! ,int]nal ,rev5ue   
,code ( #aihf is am5d$ to read z foll[s3
  7#d7 #e-ye> c>ryback = rese>* cr$its (
 small bus9esses ,not)/&+ subsection    
7d71 9 ! case ( cr$its det]m9$ "u       
section #da ) respect to an eligible    
small bus9ess 7z def9$ 9 section        
#ch7;c77#e77;,c77 9 taxable ye>s beg9n+ 
aft] ,decemb] #ca1 #bjac-- 7,a7 p>agraph
 7#a7 %all be appli$ by sub/itut+ ea* ( 
! #e taxable ye>s = ! taxable ye> 9     
subp>agraph 7,a7 !re(1 &  7,b7 p>agraph 
7#b7 %all be appli$-- 7i7 by sub/itut+  
#be taxable ye>s = #ba taxable ye>s 9   

subp>agraph 7,a7 !re(1 &  7ii7 by       
sub/itut+ #bd taxable ye>s = #bj taxable
 ye>s 9 subp>agraph 7,b7 !re(4  4  7b7  
,effective date ,! am5dm5t made by ?is  
section %all apply to taxable ye>s      
beg9n+ aft] ,decemb] #ca1 #bjac4  #e4   
,election p]mitt$ on am5d$ return  7a7  
,9 g5]al ,p>agraph 7#e7 ( section       
#da7;c7 ( ! ,int]nal ,rev5ue ,code (    
#aihf is am5d$ by add+ at ! end ! foll[+
 new subp>agraph3  7,d7 ,special rule   
reg>d+ tim+ ( election ,an election "u  
?is p>agraph may be made by means ( an  
am5dm5t to ! return ( tax = ! taxable   
ye> = :i* made4  4  7b7 ,effective date 
,! am5dm5t made by ?is section %all     
apply to taxable ye>s beg9n+ aft]       
,decemb] #ca1 #bjac4  #f4 ,treatm5t (   
rese>* cr$it = c]ta9 />tup companies    
7a7 ,9 g5]al  7#a7 ,9 g5]al ,section #da
 ( ! ,int]nal ,rev5ue ,code ( #aihf is  
am5d$ by add+ at ! end ! foll[+ new     
subsection3  7i7 ,treatm5t ( cr$it to   
qualifi$ small bus9esses  7#a7 ,9 g5]al 
,at ! election ( a qualifi$ small       

bus9ess1 ! payroll tax cr$it portion ( !
 cr$it det]m9$ "u subsection 7a7 %all be
 treat$ z a cr$it all[$ "u section      
#caaa7;f7 7& n "u ?is section74  7#b7   
,payroll tax cr$it portion ,= purposes (
 ?is subsection1 ! payroll tax cr$it    
portion ( ! cr$it det]m9$ "u subsection 
7a7 = any taxable ye> is s mu* ( su*    
cr$it z does n exce$ #bej1jjj4  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 corporation1 
p>tn]%ip1 or ,s corporation if-- 7,i7 ! 
gross receipts 7z det]m9$ "u subsection 
7c77#g77 ( su* entity = ! taxable ye> is
 less ?an #e1jjj1jjj1 &  7,,ii7 su*     
entity did n h gross receipts 7z s      
det]m9$7 = any p]iod prec$+ !           
#e-taxable-ye> p]iod end+ ) su* taxable 
ye>1 &  7ii7 any p]son n describ$ 9     
subp>agraph 7,a7 if clauses 7i7 & 7ii7 (
 subp>agraph 7,a7 appli$ to su* p]son1  
det]m9$-- 7,i7 by sub/itut+ p]son =     
entity ea* place x appe>s71 &  7,,ii7 9 

! case ( an individual1 by only tak+    
into acc\nt ! aggregate gross receipts  
receiv$ by su* individual 9 c>ry+ on    
trades or bus9esses ( su* individual4   
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 ,9 ! case ( a  
p>tn]%ip or ,s corporation1 an election 
"u ?is subsection %all be made at !     
entity level4  7,b7 ,revocation ,an     
election "u ?is subsection may n be     
revok$ )\t ! cons5t ( ! ,secret>y4  7,c7
 ,limitation ,a taxpay] may n make an   
election "u ?is subsection if su*       
taxpay] has made an election "u ?is     
subsection = #e or m prec$+ taxable     
ye>s4  7#e7 ,aggregation rules ,=       
purposes ( det]m9+ ! #bej1jjj limitation
 "u p>agraph 7#b7 & det]m9+ gross       
receipts "u p>agraph 7#c71 all memb]s ( 
! same controll$ gr\p ( corporations 7)9
 ! mean+ ( section #bfg7;f77 & all      
p]sons "u common control 7)9 ! mean+ (  
section #eb7;b7 b det]m9$ by treat+ an  

int]e/ ( m ?an #ej p]c5t z a controll+  
int]e/7 %all be treat$ z #a p]son4  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 (    
p>agraph 7#c7 ?r\gh ! use ( successor   
companies or o!r means1  7,b7           
regulations to m9imize compliance &     
record-keep+ burd5s "u ?is subsection = 
/>t-up companies1 &  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$   
returns 9 ! cases :]e !re is su* an     
adju/m5t4  4  7#b7 ,con=m+ am5dm5t      
,section #bhj;,c7c7 ( ! ,int]nal ,rev5ue
 ,code ( #aihf is am5d$ by add+ at ! end
 ! foll[+ new p>agraph3  7#e7 ,treatm5t 
( qualifi$ small bus9ess cr$it ,=       
purposes ( det]m9+ ! am\nt ( any cr$it  
"u section #da7;a7 "u ?is subsection1   

any election "u section #da7;i7 %all be 
disreg>d$4  4  7b7 ,cr$it all[$ aga9/   
,,fica taxes  7#a7 ,9 g5]al ,section    
#caaa ( ! ,int]nal ,rev5ue ,code ( #aihf
 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 qualifi$    
small bus9ess :i* has made an election  
"u section #da7;i71 !re %all be all[$ z 
a cr$it aga9/ ! tax impos$ by subsection
 7a7 on wages paid ) respect to !       
employm5t ( all employees ( ! qualifi$  
small bus9ess = days 9 an applicable    
cal5d> qu>t] an am\nt equal to ! payroll
 tax cr$it portion ( ! rese>* cr$it     
det]m9$ "u section #da7;a74  7#b7       
,c>ryov] ( unus$ cr$it ,9 any case 9 :i*
 ! payroll tax cr$it portion ( ! rese>* 
cr$it det]m9$ "u section #da7;a7 exce$s 
! tax impos$ "u subsection 7a7 = an     
applicable cal5d> qu>t]-- 7,a7 ! succe$+
 cal5d> qu>t] %all be treat$ z an       
applicable cal5d> qu>t]1 &  7,b7 ! am\nt
 ( cr$it all[$ "u p>agraph 7#a7 %all be 

r$uc$ by ! am\nt ( cr$it all[$ "u su*   
p>agraph = all prec$+ applicable cal5d> 
qu>t]s4  7#c7 ,allocation ( cr$it =     
controll$ gr\ps1 etc ,9 det]m9+ ! am\nt 
( ! cr$it "u ?is subsection-- 7,a7 all  
p]sons treat$ z a s+le taxpay] "u       
section #da %all be treat$ z a s+le     
taxpay] "u ?is section1 &  7,b7 ! cr$it 
7if any7 all[able by ?is section to ea* 
su* memb] %all be its proportionate %>e 
( ! qualifi$ rese>* exp5ses1 basic      
rese>* paym5ts1 & am\nts paid or incurr$
 to en]gy rese>* consortiums1 giv+ rise 
to ! cr$it all[able "u section #da4     
7#d7 ,def9itions ,= purposes ( ?is      
subsection-- 7,a7 ,applicable cal5d>    
qu>t] ,! t]m applicable cal5d> qu>t]    
means-- 7i7 ! fir/ cal5d> qu>t] foll[+ !
 date on :i* ! qualifi$ small bus9ess   
files a return "u section #fjab = !     
taxable ye> = :i* ! payroll tax cr$it   
portion ( ! rese>* cr$it "u section     
#da7;a7 is det]m9$1 &  7ii7 any succe$+ 
cal5d> qu>t] treat$ z an applicable     
cal5d> qu>t] "u p>agraph 7#b77;,a74  ,= 

purposes ( det]m9+ ! date on :i* a      
return is fil$1 rules simil> to ! rules 
( section #feac %all apply4  7,b7 ,o!r  
t]ms ,any t]m us$ 9 ?is subsection :i*  
is also us$ 9 section #da %all h ! mean+
 giv5 su* t]m "u section #da4  4  7#b7  
,transf]s to f$]al old-age & survivors  
insurance tru/ fund ,!re are h]eby      
appropriat$ to ! ,f$]al ,old-,age &     
,survivors ,tru/ ,fund & ! ,f$]al       
,disability ,insurance ,tru/ ,fund      
e/abli%$ "u section #bja ( ! ,social    
,security ,act 7#db ,u4,s4,c4 #dja7     
am\nts equal to ! r$uction 9 rev5ues to 
! ,treasury by reason ( ! am5dm5ts made 
by p>agraph 7#a74 ,am\nts appropriat$ by
 ! prec$+ s5t5ce %all be transf]r$ f !  
g5]al fund at su* times & 9 su* mann] z 
to replicate to ! ext5t possible !      
transf]s :i* w\ld h occurr$ to su* ,tru/
 ,fund _h su* am5dm5ts n be5 enact$4    
7c7 ,effective date ,! am5dm5ts made by 
?is section %all apply to taxable ye>s  
beg9n+ aft] ,decemb] #ca1 #bjac4