118 HR 5056 IH: Fostering Innovation and Research to Strengthen Tomorrow Act U.S. House of Representatives 2023-07-27 text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain.

I118th CONGRESS1st SessionH. R. 5056IN THE HOUSE OF REPRESENTATIVESJuly 27, 2023Ms. Tenney (for herself, Mr. Buchanan, and Mr. Feenstra) introduced the following bill; which was referred to the Committee on Ways and MeansA BILLTo amend the Internal Revenue Code of 1986 to increase the research tax credit and provide better access to the credit for business startups.

1.

Short title

This Act may be cited as the Fostering Innovation and Research to Strengthen Tomorrow Act.

2.

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 each place it appears 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)

Qualified small business gross receipts threshold under small business portion allowed against payroll tax

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

The amendments made by this section shall apply to taxable years beginning after December 31, 2023.