To strike the extension of the limitation on State and local taxes and extend the limitation on excess business losses of noncorporate taxpayers, and for other purposes.

SA 5488. Mr. WARNER proposed an amendment to amendment SA 5194
proposed by Mr. Schumer to the bill H.R. 5376, to provide for
reconciliation pursuant to title II of S. Con. Res. 14; as follows:

On page 545, strike line 1 and all that follows through
page 547, line 17, and insert the following:
(b) Effective Date.--The amendment made by this section
shall apply to sales in calendar quarters beginning after the
date which is 1 day after the date of enactment of this Act.

SEC. 13902. INCREASE IN RESEARCH CREDIT AGAINST PAYROLL TAX
FOR SMALL BUSINESSES.

(a) In General.--Clause (i) of section 41(h)(4)(B) is
amended--
(1) by striking ``Amount.--The amount'' and inserting
``Amount.--

``(I) In general.--The amount'', and

(2) by adding at the end the following new subclause:

``(II) Increase.--In the case of taxable years beginning
after December 31, 2022, the amount in subclause (I) shall be
increased by $250,000.''.

(b) Allowance of Credit.--
(1) In general.--Paragraph (1) of section 3111(f) is
amended--
(A) by striking ``for a taxable year, there shall be
allowed'' and inserting ``for a taxable year--
``(A) there shall be allowed'',
(B) by striking ``equal to the'' and inserting ``equal to
so much of the'',
(C) by striking the period at the end and inserting ``as
does not exceed the limitation of subclause (I) of section
41(h)(4)(B)(i) (applied without regard to subclause (II)
thereof), and'', and
(D) by adding at the end the following new subparagraph:
``(B) there shall be allowed as a credit against the tax
imposed by subsection (b) for the first calendar quarter
which begins after the date on which the taxpayer files the
return specified in section 41(h)(4)(A)(ii) an amount equal
to so much of the payroll tax credit portion determined under
section 41(h)(2) as is not allowed as a credit under
subparagraph (A).''.
(2) Limitation.--Paragraph (2) of section 3111(f) is
amended--
(A) by striking ``paragraph (1)'' and inserting ``paragraph
(1)(A)'', and
(B) by inserting ``, and the credit allowed by paragraph
(1)(B) shall not exceed the tax imposed by subsection (b) for
any calendar quarter,'' after ``calendar quarter''.
(3) Carryover.--Paragraph (3) of section 3111(f) is amended
by striking ``the credit'' and inserting ``any credit''.
(4) Deduction allowed.--Paragraph (4) of section 3111(f) is
amended--
(A) by striking ``credit'' and inserting ``credits'', and
(B) by striking ``subsection (a)'' and inserting
``subsection (a) or (b)''.
(c) Aggregation Rules.--Clause (ii) of section 41(h)(5)(B)
is amended by striking ``the $250,000 amount'' and inserting
``each of the $250,000 amounts''.
(d) Effective Date.--The amendments made by this section
shall apply to taxable years beginning after December 31,
2022.

SEC. 13903. REINSTATEMENT OF LIMITATION RULES FOR DEDUCTION
FOR STATE AND LOCAL, ETC., TAXES; EXTENSION OF
LIMITATION ON EXCESS BUSINESS LOSSES OF
NONCORPORATE TAXPAYERS.

(a) Reinstatement of Limitation Rules for Deduction for
State and Local, etc., Taxes.--
(1) In general.--Section 164(b)(6), as amended by section
13904, is further amended--
(A) in the heading, by striking ``2026'' and inserting
``2025'', and
(B) by striking ``2027'' and inserting ``2026''.
(2) Effective date.--The amendments made by this subsection
shall apply to taxable years beginning after December 31,
2022.
(b) Extension of Limitation on Excess Business Losses of
Noncorporate Taxpayers.--
(1) In general.--Section 461(l)(1) is amended by striking
``January 1, 2027'' each place it appears and inserting
``January 1, 2029''.
(2) Effective date.--The amendments made by this subsection
shall apply to taxable years beginning after December 31,
2026.

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