,,ii  #aafth ,,congress  #ast ,session  
,s4 #bbjg  ,,in ,,the ,,senate ,,of     
,,the ,,united ,,states  ,july #bc1     
#bjai ,ms4 ,hassan 7for herself and ,mr4
 ,tillis7 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 expand refundability and    
increase simplification of the research 
credit for certain small businesses4    
#a4 ,short title ,this ,act may be cited
 as the ,research and ,development ,tax 
,credit ,expansion ,act of #bjai4  #b4  
,expansion of refundable research credit
 for new and small businesses  7a7      
,doubling cap on refundable credit  7#a7
 ,in general ,clause 7i7 of section     
#da7;h77#d77;,b7 of the ,internal       
,revenue ,code of #aihf is amended by   
striking #bej1jjj and inserting         
#ejj1jjj4  7#b7 ,adjustment for         
inflation ,paragraph 7#d7 of section    
#da7;h7 of such ,code is amended-- 7,a7 
by redesignating subparagraph 7,c7 as   

subparagraph 7,d71  7,b7 by             
redesignating clause 7ii7 of            
subparagraph 7,b7 as subparagraph 7,c71 
and by moving such subparagraph #b ems  
to the left1  7,c7 by striking          
,limitations in the heading of          
subparagraph 7,b7 and inserting         
,limitation on amount of election1  7,d7
 by striking ,amount in the heading of  
clause 7i7 of subparagraph 7,b7 and     
inserting ,in general1 and  7,e7 by     
adding at the end of subparagraph 7,b71 
as amended by the preceding             
subparagraphs of this paragraph1 the    
following new clause3  7ii7 ,adjustment 
for inflation ,in the case of a taxable 
year beginning after #bjbj1 the #ejj1jjj
 amount in clause 7i7 shall be increased
 by an amount equal to--  7,i7 such     
dollar amount1 multiplied by  7,,ii7 the
 cost-of-living adjustment determined   
under section #a7;f77#c7 for the        
calendar year in which the taxable year 
begins1 determined by substituting #bjai
 for #bjaf in subparagraph 7,a77ii7     

thereof4  ,if any increase under the    
preceding sentence is not a multiple of 
#ajj1 such increase shall be rounded to 
the nearest multiple of #ajj4  4  7#c7  
,conforming amendment ,clause 7ii7 of   
section #da7;h77#e77;,b7 of such ,code  
is amended by striking the #bej1jjj     
amount and inserting the amount in      
effect4  7b7 ,credit refundable against 
,medicare and unemployment taxes  7#a7  
,in general ,paragraph 7#a7 of section  
#caaa7;f7 of the ,internal ,revenue     
,code of #aihf is amended by striking   
subsection 7a7 and inserting subsections
 7a7 and 7b7 and section #ccja4  7#b7   
,conforming amendments  7,a7 ,paragraph 
7#b7 of section #caaa7;f7 of such ,code 
is amended by striking the tax imposed  
by subsection 7a7 and inserting the sum 
of the taxes imposed by subsection 7a71 
subsection 7b71 and section #ccja4  7,b7
 ,section #ccjb of such ,code is amended
 by adding at the end the following new 
subsection3  7i7 ,credit for research   
expenditures of qualified small         

businesses ,any portion of the credit   
under section #caaa7;f7 which is        
credited under such section to the tax  
under section #ccja shall be treated as 
a credit under this section4 ,subsection
 7c7 shall not apply to any such credit4
  4  7c7 ,doubling eligibility threshold
 ,subclause 7,i7 of section             
#da7;h77#c77;,a77i7 of the ,internal    
,revenue ,code of #aihf is amended by   
striking #e1jjj1jjj and inserting       
#aj1jjj1jjj4  7d7 ,effective date ,the  
amendments made by this section shall   
apply to taxable years beginning after  
,december #ca1 #bjai4  #c4              
,modifications to alternative simplified
 credit for new and small businesses    
7a7 ,in general ,paragraph 7#d7 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 rules for  
qualified small businesses ,in the case 
of a qualified small business 7as       
defined in subsection 7h77#c77-- 7i7    

,credit rate ,subparagraph 7,a7 shall be
 applied by substituting #bj percent for
 #ad percent4  7ii7 ,special rule for   
#ast year of qualified research expenses
 ,if the taxpayer has no qualified      
research expenses in any taxable year   
preceding the taxable year for which the
 credit is being determined1            
subparagraph 7,b77ii7 shall be applied  
by substituting #bj percent for #f      
percent4  7iii7 ,special rule for other 
years ,if the taxpayer is not described 
in clause 7ii7 for the taxable year1 and
 subparagraph 7,b7 applies to such      
taxpayer for such year1 at the election 
of the taxpayer--  7,i7 subparagraph    
7,b77ii7 shall be applied by            
substituting #aj percent for #f percent1
 or  7,,ii7 subparagraph 7,b7 shall not 
apply1 and the average under            
subparagraph 7,a7 shall be determined by
 disregarding any taxable year in the   
#c-year period described in such        
subparagraph in which there were no     
qualified research expenses4  4  7b7    

,effective date ,the amendment made by  
this section shall apply to taxable     
years beginning after ,december #ca1    
#bjai4