H.R. 7766 — Introduced in House

I 116th CONGRESS 2d Session H. R. 7766 IN THE HOUSE OF REPRESENTATIVES July 23, 2020Mrs. Walorski (for herself and Mr. Arrington) introduced the following bill; which was referred to the Committee on Ways and Means A BILL To amend the Internal Revenue Code of 1986 to increase the research tax credit and provide better access to the credit for business startups. 1. Increase in research credit and better access to credit for startups (a) Credit rate increase (1) In general Section 41(a) of the Internal Revenue Code of 1986 is amended by striking 20 percent and inserting 40 percent. (2) Alternative simplified credit Section 41(c)(4)(A) of such Code is amended by striking 14 percent and inserting 28 percent. (3) Credit rate in case of no research expenses in 3 preceding years Section 41(c)(4)(B)(ii) of such Code is amended by striking 6 percent and inserting 1/2 the credit percentage in effect under subparagraph (A). (b) Modification of small business portion allowed against payroll tax (1) Increase in limitation Paragraphs (4)(B)(i) and (5)(B)(ii) of section 41(h) of such Code are each amended by striking $250,000 and inserting $500,000. (2) Qualified small business gross receipts threshold Section 41(h)(3)(A)(i)(I) of such Code is amended by striking $5,000,000 and inserting the dollar amount in effect for the taxable year under section 448(c)(1). (c) Effective dates (1) Subsection (a) The amendments made by subsection (a) shall apply to taxable years beginning after December 31, 2020. (2) Subsection (b) The amendments made by subsection (b) shall apply to taxable years beginning after December 31, 2019.