,i  #aaith ,,congress  #ast ,session    
,h4 ,r4 #dicc  ,,in ,,the ,,house ,,of  
,,representatives  ,august #h1 #bjbe,mr4
 ,neguse introduced the following bill2 
which was referred to the ,committee on 
,ways and ,means  ,a ,,bill  ,to amend  
the ,internal ,revenue ,code of #aihf to
 expand eligibility 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 #bjbe4  #b4  
,expansion of refundable research credit
 for new and small businesses  7a7      
,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 #bjbf1 the dollar  
amounts 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 #bjbe
 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  7b7   
,credit refundable against unemployment 
taxes  7#a7 ,in general ,section        
#caaa7;f77#a77;,b7 of the ,internal     

,revenue ,code of #aihf is amended by   
striking subsection 7b7 and inserting   
subsection 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 7b7 and inserting the sum 
of the taxes imposed by ,comprehensive  
,legislation ,ensuring ,accountability  
and ,responsiveness ,act of #bjbe1      
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 ,qualified small business      
definition expanded ,section            
#da7;h77#c77;,a7 of such ,code is       
amended-- 7#a7 in clause 7i77,i71 by    

striking #e1jjj1jjj and inserting       
#aj1jjj1jjj1  7#b7 by amending clause   
7i77,,ii7 to read as follows3  7,,ii7   
such entity did not have gross receipts 
7as so determined7 exceeding an         
aggregate of #be1jjj for any taxable    
year preceding the #aj-taxable-year     
period ending with such taxable year1   
and  1 and  7#c7 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  7d7 
,effective date ,the amendments made by 
this section shall apply to taxable     
years beginning after ,december #ca1    
#bjbe4  #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    
#bjbe4