,,ii  #aag? ,,congress  #a/ ,session    
,s4 #bebi  ,,9 ,,! ,,s5ate ,,( ,,!      
,,unit$ ,,/ates  ,july #bi1 #bjba,mr4   
,m55dez introduc$ ! foll[+ bill2 :i* 0  
read twice & ref]r$ to ! ,committee on  
,f9ance  ,a ,,bill  ,to am5d ! ,int]nal 
,rev5ue ,code ( #aihf to provide =      
advance refunds ( c]ta9 net op]at+      
losses & rese>* exp5ditures relat+ to   
,,covid-#ai1 & = o!r purposes4  #a4     
,%ort title ,?is ,act may be cit$ z !   
,innovation & ,gr[? ,n[ by ,inve/+ 9    
,tomorr['s ,ent]prises ,act or !        
,,ignite ,am]ican ,innovation ,act4  #b4
 ,advance refunds ( net op]at+ losses = 
,c corporation taxpay]s  7a7 ,9 g5]al   
7#a7 ,net op]at+ loss c>ryov]s ,section 
#agb ( ! ,int]nal ,rev5ue ,code ( #aihf 
is am5d$ by r$esignat+ subsection 7g7 z 
subsection 7h7 & by ins]t+ aft]         
subsection 7f7 ! foll[+3  7g7 ,advance  
refund = ,c corporations relat+ to c]ta9
 c>ryov]s aris+ dur+ #bjae ?r\gh #bjba  
7#a7 ,9 g5]al ,a taxpay] to :i* ?is     
subsection applies = any taxable ye>    

beg9n+ 9 #bjbj or #bjba %all be all[$ an
 advance refund 9 ! am\nt det]m9$ "u    
p>agraph 7#b7 = su* taxable ye>4  7#b7  
,am\nt ( ! advance refund  7,a7 ,9 g5]al
 ,! advance refund det]m9$ "u ?is       
p>agraph = any taxable ye> is an am\nt  
equal ! less] (-- 7i7 ! am\nt specifi$  
by ! taxpay] 9 ! election to h ?is      
subsection apply1 or  7ii7 an am\nt     
equal to #ba p]c5t ( ! sum (-- 7,i7 any 
net op]at+ loss aris+ 9 su* taxable ye> 
7r$uc$ by any portion ( su* net op]at+  
loss c>ri$ back to a prec$+ taxable ye> 
"u subsection 7b77#a77;,d771 plus       
7,,ii7 any c>ry=w>d to su* taxable ye> (
 a net op]at+ loss aris+ 9 a taxable ye>
 beg9n+ aft] ,decemb] #ca1 #bjad1 & be=e
 su* taxable ye>4  7,b7 ,aggregate doll>
 limitation ,! aggregate am\nt ( advance
 refunds ( a taxpay] "u ?is subsection =
 all taxable ye>s %all n exce$          
#ajj1jjj1jjj4  7#c7 ,net op]at+ loss    
(fset by advance refunds ,! net op]at+  
loss ( ! taxpay] = any taxable ye> to   
:i* ?is subsection applies %all be r$uc$

 by ! am\nt ( any net op]at+ loss aris+ 
9 su* taxable ye>1 or net op]at+ loss   
c>ry=w>d to su* taxable ye>1 = :i* an   
advance refund is elect$ pursuant to ?is
 subsection4  7#d7 ,taxpay] to :i*      
subsection applies ,= purposes (        
p>agraph 7#a71 ?is subsection applies to
 a taxpay] = a taxable ye> if-- 7,a7 !  
taxpay] is a ,c corporation-- 7i7 )     
respect to :i* ! av]age numb] ( full-"t 
employees 7z det]m9$ = purposes (       
det]m9+ :e!r an employ] is an applicable
 l>ge employ] = purposes ( section      
#dihj;,h7c77#b7 ( ! ,int]nal ,rev5ue    
,code ( #aihf7 employ$ by ! taxpay] dur+
 cal5d> ye> #bjai or #bjbj1 :i*ev] is   
great]1 is great] ?an five & is n great]
 ?an #a1ejj1 &  7ii7 :i* has compli$ to 
date ) fil+ ( all =ms or return         
requirem5ts "u section #cajb1 #caaa1    
#ccja1 & #cdjb ) respect to cal5d> ye>s 
#bjai & #bjbj1 &  7,b7 ! taxpay] elects 
! application ( ?is subsection = su*    
taxable ye>4  7#e7 ,special rules ,=    
purposes ( ?is subsection-- 7,a7 ,c]ta9 

contributions ( capital n tak5 into     
acc\nt 9 det]m9+ own]%ip *ange "u       
section #chb ,= purposes ( det]m9+ :e!r 
an own]%ip *ange has occurr$ ) respect  
to ! loss corporation "u section        
#chb7;g7 9 comput+ ! am\nt ( any advance
 refund "u ?is section1 a transf] ( /ock
 9 ex*ange = a capital contribution to  
su* loss corporation %all n be tak5 into
 acc\nt if-- 7i7 ! value ( ! /ock       
transf]r$ is comm5surate ) ! am\nt (    
capital be+ contribut$1 &  7ii7 su*     
ex*ange is n "p ( a plan to r$eem o!r   
%>ehold]s4  7,b7 ,aggregation rule ,all 
corporations treat$ z a s+le employ] "u 
subsection 7a7 ( section #eb or         
subsection 7m7 or 7o7 "u section #dad   
%all be treat$ z a s+le taxpay] =       
purposes ( ?is section4  7#f7           
,regulations & guidance ,! ,secret>y    
%all issue su* regulations & o!r        
guidance z may be necess>y to c>ry out !
 purposes ( ?is section1 includ+        
regulations & o!r guidance to c>ry out !
 purposes ( ?is subsection-- 7,a7 to    

all[ = ! mak+ ( an election = !         
application ( ?is subsection 9 su* mann]
 z ! ,secret>y may by regulations       
prescribe1  7,b7 to all[ ! paym5t ( !   
advance refund 9 accordance ) section   
#fdbi bas$ on su* in=mation z !         
,secret>y %all require1  7,c7 to all[   
advance refunds p]mitt$ "u ?is          
subsection to be claim$ on su* =ms z !  
,secret>y %all prescribe1 &  7,d7 to    
provide = ! application ( ?is subsection
 to taxpay]s t file consolidat$ returns4
  7#g7 ,advance refund ,= rules = claim+
 ! advance refund1 see section #fdbi4  4
  7#b7 ,con=m+ am5dm5t ,section #agb7;c7
 ( su* ,code is am5d$ by ins]t+ be=e !  
p]iod at ! end ! foll[+3 & ) ! r$uction 
requir$ by subsection 7g74  7b7 ,advance
 refund ( rese>* cr$its & orphan drug   
cr$its = ,c corporation taxpay]s        
,section #ci ( su* ,code is am5d$ by    
add+ at ! end ! foll[+3  7e7 ,advance   
refund ( rese>* & orphan drug cr$its    
7#a7 ,9 g5]al ,a taxpay] t is a ,c      
corporation may elect an advance refund 

( ! portion ( any unus$ bus9ess cr$it   
c>ry=w>d "u section #ci :i*-- 7,a7 is   
attributable to ! cr$it det]m9$ "u      
section #da or ! cr$it det]m9$ "u       
section #de;,c1 &  7,b7 is an unus$     
bus9ess cr$it c>ry=w>d c>ri$ to a       
taxable ye> beg9n+ on or aft] ,janu>y   
#a1 #bjbj1 & be=e ,janu>y #a1 #bjbb1 & t
 arose 9 taxable ye>s beg9n+ aft]       
,decemb] #ca1 #bjad4  7#b7 ,annual      
limitation ,! am\nt ( ! advance refund  
"u p>agraph 7#a7 = a taxable ye> %all n 
exce$ ! excess 7if any7 ( #be1jjj1jjj   
r$uc$ by ! am\nt ( ! advance refund =   
su* taxable ye> "u section #agb7;g74    
7#c7 ,inapplicability ( sections #ch7;c7
 & #chc7;a7 ,= purposes ( ?is           
subsection1 ! am\nt ( any advance refund
 %all be comput$ )\t respect to !       
limitations "u sections #ch7;c7 &       
#chc7;a74  7#d7 ,regulations & guidance 
,! ,secret>y %all issue su* regulations 
& o!r guidance z may be necess>y-- 7,a7 
to all[ = ! mak+ ( an election "u       
p>agraph 7#a7 9 su* mann] z ! ,secret>y 

may by regulations prescribe1  7,b7 to  
all[ ! advance refund "u ?is subsection 
& section #fdbi bas$ on su* in=mation z 
! ,secret>y %all require1 &  7,c7 to    
all[ advance refunds "u ?is section to  
be claim$ on su* =ms z ! ,secret>y %all 
prescribe4  4  7c7 ,advance refund (    
c]ta9 net op]at+ losses1 rese>* cr$it1 &
 orphan drug cr$it  7#a7 ,9 g5]al       
,sub*apt] ,b ( *apt] #fe ( su* ,code is 
am5d$ by ins]t+ aft] section #fdbh !    
foll[+ new section3  #fdbi4 ,advance    
refund ( c]ta9 net op]at+ losses1 rese>*
 cr$it1 & orphan drug cr$it  7a7        
,advance refund  7#a7 ,9 g5]al ,9 ! case
 ( a ,c corporation1 ! advance refund   
sum = any taxable ye> may be claim$ by !
 taxpay] z foll[s3 7,a7 ,payroll taxes  
,fir/1 by r$uc+ deposits or paym5ts (   
applicable employm5t taxes4  7,b7       
,advance refundability ,second1 any     
rema9+ am\nt ( ! advance refund sum to  
be refund$ to ! taxpay] aft] !          
application ( subp>agraph 7,a7 %all be  
treat$ z an ov]paym5t & %all be refund$ 

9 a mann] simil> to t prescrib$ 9       
subsection #bcja7;b77#c7 ( !            
,coronavirus1 ,aid1 ,relief1 & ,economic
 ,security ,act4  7#b7 ,applicable      
employm5t taxes ,= purposes ( p>agraph  
7#a77;,a71 ! t]m applicable employm5t   
taxes means ! foll[+3 7,a7 ,! taxes     
impos$ "u section #caaa7;b74  7,b7 ,s   
mu* ( ! taxes impos$ "u section         
#cbba7;a7 z are attributable to ! rate 9
 effect "u section #caaa7;b74  7b7      
,advance refund sum ,= purposes (       
subsection 7a71 ! t]m advance refund sum
 means1 ) respect to any taxable ye>1 ! 
sum (-- 7#a7 ! am\nt ( ! taxpay]'s      
advance refund "u section #agb7;g7 = !  
taxable ye>1 &  7#b7 ! am\nt ( ! advance
 refund = su* taxable ye> "u section    
#ci7;e7 ( any unus$ bus9ess cr$it       
c>ry=w>d :i* is attributable to ! rese>*
 cr$it det]m9$ "u section #da or !      
orphan drug cr$it det]m9$ "u section    
#de;,c4  7c7 ,recapture  7#a7 ,9 g5]al  
,! ,secret>y %all1 by regulations1      
provide = recaptur+ ! b5efit ( any      

advance refund all[able "u ?is section  
if !re is a sale or full or p>tial      
liquidation ( ! corporation dur+ !      
recapture p]iod4 ,! recapture am\nt %all
 n exce$ ! less] (-- 7,a7 ! am\nt ( any 
proce$s or di/ributions receiv$ by      
%>ehold]s ( ! corporation attributable  
to su* sale or liquidation1 or  7,b7 !  
am\nt t ! advance refund exce$s !       
aggregate am\nt sp5t by ! corporation on
 payroll1 rese>* exp5ses1 & prop]ty1    
plant & equipm5t dur+ ! recapture p]iod4
  7#b7 ,recapture p]iod ,= purposes (   
p>agraph 7#a71 ! t]m recapture p]iod    
means ! two-ye> p]iod beg9n+ on ! date (
 ! advance refund4  4  7#b7 ,cl]ical    
am5dm5t ,! table ( sections = sub*apt]  
,b ( *apt] #fe ( su* ,code is am5d$ by  
ins]t+ aft] ! item relat+ to section    
#fdbh ! foll[+ new item3  ,sec4 #fdbi4  
,advance refund ( c]ta9 net op]at+      
losses1 rese>* cr$it1 & orphan drug     
cr$it4  4  7d7 ,effective date ,!       
am5dm5ts made by ?is section %all apply 
to taxable ye>s beg9n+ aft] ,decemb]    

#ca1 #bjai4  #c4 ,enhanc$ rese>* cr$it =
 ,,covid-#ai exp5ditures  7a7 ,9 g5]al  
,section #da ( ! ,int]nal ,rev5ue ,code 
( #aihf is am5d$ by add+ at ! end !     
foll[+3  7i7 ,enhanc$ cr$it =           
,,covid-#ai rese>* exp5ditures  7#a7 ,9 
g5]al ,= purposes ( det]m9+ ! am\nt (   
qualifi$ rese>* exp5ses "u subsection   
7b7 = ! taxable ye>1 ! am\nt ( any      
qualifi$ ,,covid-#ai rese>* exp5ditures 
paid or incurr$ by a taxpay] on or aft] 
,febru>y #ae1 #bjbj1 & be=e ,janu>y #a1 
#bjbb1 %all be equal to #bjj p]c5t ( !  
am\nt paid or incurr$4  7#b7 ,qualifi$  
,,covid-#ai rese>* exp5ditures ,=       
purposes ( ?is subsection1 ! t]m        
qualifi$ ,,covid-#ai rese>* exp5ditures 
means exp5ditures paid or incurr$ 9     
connection ) ! rese>* & developm5t (    
products regulat$ by ! ,food & ,drug    
,adm9i/ration 7includ+ biologics1 drugs1
 & devices7 t are int5d$ to be us$ 9 !  
diagnosis1 prev5tion & treatm5t (       
coronavirus disease #bjai 7,,covid-#ai71
 & su* o!r simil> exp5ditures z         

prescrib$ by ! ,secret>y 9 regulations4 
4  7b7 ,effective date ,! am5dm5t made  
by ?is section %all apply to taxable    
ye>s beg9n+ aft] ,decemb] #ca1 #bjai4