,,ii  #aac? ,,congress  #a/ ,session    
,s4 #aic  ,,9 ,,! ,,s5ate ,,( ,,!       
,,unit$ ,,/ates  ,janu>y #ca1 #bjac ,mr4
 ,coons 7= himself1 ,mr4 ,enzi1 ,mr4    
,s*um]1 ,mr4 ,rubio1 ,mr4 ,blunt1 ,ms4  
,/ab5[1 & ,mr4 ,moran7 introduc$ !      
foll[+ bill2 :i* 0 read twice & ref]r$  
to ! ,committee on ,f9ance  ,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$it ,act ( #bjac4  #b4   
,treatm5t ( rese>* cr$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$--  7,i7 by sub/itut+ 
p]son = entity ea* place x appe>s1 &    
7,,ii7 9 ! case ( an individual1 by only
 tak+ into acc\nt ! aggregate gross     
receipts receiv$ 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 &     
recordkeep+ 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 #bjab4