,i #aafth ,,congress #b;d ,session ,h4 ,r4 #fgac ,,in ,,the ,,house ,,of ,,representatives ,may #e1 #bjbj,ms4 ,del,bene 7for herself and ,mrs4 ,walorski7 introduced the following bill2 which was referred to the ,committee on ,ways and ,means1 and in addition to the ,committee on ,small ,business1 for a period to be subsequently determined by the ,speaker1 in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned ,a ,,bill ,to amend the ,internal ,revenue ,code of #aihf to expand and modify the credit for increasing research activities1 and for other purposes4 #a4 ,short title ,this ,act may be cited as the ,furthering ,our ,recovery ,with ,american ,research ,development ,act or the ,,forward ,act4 #b4 ,treatment of credit for qualified small businesses 7a7 ,gross receipts test 7#a7 ,in general ,clause 7i7 of section #da7;h77#c77;,a7 of the ,internal ,revenue ,code of #aihf is amended-- 7,a7 by striking #e1jjj1jjj in subclause 7,i7 and inserting #bj1jjj1jjj2 and 7,b7 by striking gross receipts in subclause 7,,ii7 and inserting gross receipts in excess of #be1jjj4 7#b7 ,definition of gross receipts 7,a7 ,in general ,clause 7i7 of section #da7;h77#c77;,a77i7 of such ,code1 as amended by paragraph 7#a71 is further amended-- 7i7 by striking 7as determined under the rules of section #ddh7;c77#c71 without regard to subparagraph 7,a7 thereof7 in subclause 7,i72 and 7ii7 by striking 7as so determined7 in subclause 7,,ii74 7,b7 ,definition ,subparagraph 7,a7 of section #da7;h77#c7 of such ,code1 as so amended1 is further amended by adding at the end the following flush sentence3 ,for purposes of the preceding sentence1 gross receipts shall be determined under the rules of section #ddh7;c77#c7 without regard to subparagraph 7,a7 thereof1 except that such term shall not include any contributions to the capital of a corporation 7other than contributions by a shareholder7 or any amount described in section #aah7;b7 7other than receipts from customers in exchange for goods or services74 4 7b7 ,startup date ,subclause 7,,ii7 of section #da7;h77#c77;,a77i7 of the ,internal ,revenue ,code of #aihf is amended by striking #e-taxable-year period and inserting #h-taxable-year period4 7c7 ,limitation on election amount ,clause 7i7 of section #da7;h77#d77;,b7 of the ,internal ,revenue ,code of #aihf is amended by striking #bej1jjj and inserting #a1jjj1jjj4 7d7 ,limitation on election ,clause 7ii7 of section #da7;h77#d77;,b7 of the ,internal ,revenue ,code of #aihf is amended by striking #e or more and inserting #h or more4 7e7 ,payroll tax credit portion ,paragraph 7#b7 of section #da7;h7 of the ,internal ,revenue ,code of #aihf is amended-- 7#a7 by striking subparagraph 7,c72 7#b7 by adding or at the end of subparagraph 7,a72 and 7#c7 by striking 1 or at the end of subparagraph 7,b7 and inserting a period4 7f7 ,effective date ,the amendments made by this section shall apply to taxable years beginning after ,december #ca1 #bjai4 #c4 ,inclusion of employee training expenses 7a7 ,in general ,paragraph 7#a7 of section #da7;b7 of the ,internal ,revenue ,code of #aihf is amended-- 7#a7 by striking and at the end of subparagraph 7,a72 7#b7 by striking the period at the end of subparagraph 7,b7 and inserting 1 and2 and 7#c7 by adding at the end the following new subparagraph3 7,c7 employee training expenses4 4 7b7 ,employee training expenses ,subsection 7b7 of section #da of the ,internal ,revenue ,code of #aihf is amended-- 7#a7 by redesignating paragraph 7#d7 as paragraph 7#e72 and 7#b7 by inserting after paragraph 7#c7 the following new paragraph3 7#d7 ,employee training expenses 7,a7 ,in general ,the term employee training expenses means any wages paid or incurred to an employee in connection with training for the employee to perform qualified services described in clause 7i7 or 7ii7 of paragraph 7#b77;,b74 ,such term does not include wages paid or incurred in connection with general employer training which does not specifically pertain to such qualified services4 7,b7 ,wages1 etc ,for purposes of this paragraph-- 7i7 ,in general ,the term wages shall not include any amount taken into account under paragraph 7#b77;,a77i74 7ii7 ,rules ,the rules of paragraph 7#b77;,d7 shall apply4 4 7c7 ,effective date ,the amendments made by this section shall apply to expenses paid or incurred in taxable years beginning after ,december #ca1 #bjai4 #d4 ,increased credit rate for certain research activities 7a7 ,in general ,section #da of the ,internal ,revenue ,code of #aihf is amended by adding at the end the following new subsection3 7i7 ,special rules for certain high-,benefit research activities 7#a7 ,certain collaborative research 7,a7 ,in general ,in the case of any qualified research expenses described in subparagraph 7,b71 as applicable-- 7i7 subsection 7a77#a7 shall be applied by substituting #be percent for #bj percent1 7ii7 subsection 7c77#d77;,a7 shall be applied by substituting #ag4e percent for #ad percent1 and 7iii7 subsection 7c77#d77;,b77ii7 shall be applied by substituting #g4e percent for #f percent4 7,b7 ,expenses described 7i7 ,in general ,qualified research expenses described in this subparagraph are qualified research expenses incurred by the taxpayer with respect to qualified research in collaboration with one or more other entities1 which may include a qualified organization described in subparagraph 7,a71 7,b71 or 7,c7 of subsection 7e77#f71 an organization which is a ,federal laboratory 7within the meaning of subsection 7b77#c77;,d77i77,,iii771 or a qualified research consortium 7as defined in subsection 7b77#c77;,c77ii774 7ii7 ,contribution requirement ,a collaboration shall be taken into account under clause 7i7 only if each entity involved in the collaboration provides or performs more than of its pro rata share of the work hours for the research4 7#b7 ,research by ,united ,states manufacturers 7,a7 ,in general ,in the case of a qualified domestic manufacturer1 this section shall be applied-- 7i7 by increasing the #bj percent amount in subsection 7a77#a7 by the bonus amount1 7ii7 by increasing the #ad percent amount under subsection 7c77#d77;,a7 by the alternative simplified bonus amount1 and 7iii7 by increasing the #f percent amount under subsection 7c77#d77;,b77ii7 by the subsection 7c77#d77;,b7 bonus amount4 7,b7 ,qualified domestic manufacturer ,for purposes of this subsection-- 7i7 ,in general ,the term qualified domestic manufacturer means a taxpayer who has domestic production gross receipts which are more than #ej percent of total gross receipts4 7ii7 ,domestic production gross receipts ,the term domestic production gross receipts has the meaning given to such term under section #aii7;c77#d7 7as in effect on ,december #ca1 #bjag74 7,c7 ,bonus amount2 alternative simplified bonus amount2 subsection 7c77#d77;,b7 amount ,for purposes of subparagraph 7,a73 ,if the percentage of total gross receipts which are domestic production gross receipts is3,the bonus amount is the following number of percentage points3,the alternative simplified bonus amount is the following number of percentage points3,the subsection 7c77#d77;,b7 bonus amount is the following number of percentage points3,more than #ej but not more than #fjaj4gj4c ,more than #fj but not more than #gjba4dj4f ,more than #gj but not more than #hjcb4aj4i ,more than #hj but not more than #ijdb4ha4b ,more than #ijec4ea4e4 4 7b7 ,effective date ,the amendments made by this section shall apply to taxable years beginning after ,december #ca1 #bjbj4 #e4 ,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 from the taxes under section #caaa7;a7 of the ,internal ,revenue ,code of #aihf by reason of the amendments made by sections #b1 #c1 and #d4 ,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 #f4 ,support for small business research and development 7a7 ,definitions ,in this section-- 7#a7 the term ,administrator means the ,administrator of the ,small ,business ,administration2 7#b7 the term ,commissioner means the ,commissioner of ,internal ,revenue2 7#c7 the term small business concern has the meaning given the term in section #c7;a7 of the ,small ,business ,act 7#ae ,u4,s4,c4 #fcb7;a772 and 7#d7 the term small business development center means a small business development center described in section #ba of the ,small ,business ,act 7#ae ,u4,s4,c4 #fdh74 7b7 ,,irs and ,,sba partnerships ,beginning not later than #ahj days after the date of enactment of this ,act1 the ,commissioner1 in consultation with the ,administrator1 shall develop partnership agreements that-- 7#a7 provide for the development of-- 7,a7 basic training1 including in-person or modular training sessions1 relating to ,federal income tax credits that benefit small business concerns and startups1 especially credits for research and experimentation2 and 7,b7 informational materials relating to such credits1 including ,internal ,revenue ,service guidance documents2 7#b7 provide the basic training and informational materials developed under paragraph 7#a7-- 7,a7 through electronic resources1 including internet-based webinars2 and 7,b7 at physical locations1 including small business development centers2 and 7#c7 make such materials available to-- 7,a7 business development programs administered by the ,small ,business ,administration1 including women's business centers1 ,veteran ,business ,outreach ,centers1 and ,u4,s4 ,export ,assistance ,centers1 and nonprofit research partners such as the ,service ,corps of ,retired ,executives authorized under section #h7;b77#a77;,b7 of the ,small ,business ,act 7#ae ,u4,s4,c4 #fcg7;b77#a77;,b772 and 7,b7 business development entities that partner with ,small ,business ,administration programs1 including universities1 nonprofits1 business incubators1 and business accelerators4 7c7 ,reporting ,requirement ,not later than #ahj days after the date of enactment of this ,act1 the ,commissioner1 in consultation with the ,administrator1 shall submit to ,congress a report describing how the ,internal ,revenue ,service in partnership with the ,small ,business ,administration will provide outreach and educational materials to small business concerns1 businesses of medium size1 and startups regarding section #da7;h7 of the ,internal ,revenue ,code of #aihf4 7d7 ,small ,business ,development ,centers ,section #ba7;c77#c7 of the ,small ,business ,act 7#ae ,u4,s4,c4 #fdh7;c77#c77 is amended-- 7#a7 in subparagraph 7,t71 by striking and at the end2 7#b7 in the first subparagraph 7,u7 7relating to encouraging and assisting the provision of succession planning71 by striking the period at the end of clause 7v7 and inserting a semicolon2 7#c7 in the second subparagraph 7,u7 7relating to providing training in conjunction with the ,united ,states ,patent and ,trademark ,office7-- 7,a7 by redesignating that subparagraph as subparagraph 7,v72 and 7,b7 in clause 7ii77,,ii71 by striking the period at the end and inserting 2 and2 and 7#d7 by adding at the end the following3 7,w7 in conjunction with the ,internal ,revenue ,service1 providing informational materials1 education1 and basic training-- 7i7 to small business concerns relating to ,federal income tax credits available under the ,internal ,revenue ,code of #aihf1 including-- 7,i7 credits available to businesses generally2 and 7,,ii7 credits available to small business concerns and startups specifically1 especially credits for research and experimentation2 and 7ii7 that may be delivered-- 7,i7 in person2 or 7,,ii7 through a website4 4 7e7 ,authorization of appropriations ,there are authorized to be appropriated #b1jjj1jjj per year to carry out the requirements of this section4