H.R. 8253House117th Congress (2021-2023)In Committee

Fostering Innovation and Research to Strengthen Tomorrow Act

AI-Generated Summary

Updated February 8, 2026 at 4:25 PM UTC

The Fostering Innovation and Research to Strengthen Tomorrow Act amends the Internal Revenue Code to make the federal research tax credit more generous and easier for startups to use. It doubles the main credit rates and raises the payroll‑tax credit limits for small businesses, while updating the size threshold for qualifying firms. The changes take effect for tax years starting after the end of 2022 and aim to encourage more research and development activity, especially among new and small companies.

Key Provisions

Raises the regular research tax credit rate from 20% to 40%.
Doubles the alternative simplified research credit from 14% to 28%.
Sets the credit rate for companies with no research expenses in the prior three years to half of the new 40% rate.
Increases the small‑business payroll‑tax credit limit from $250,000 to $500,000.
Changes the small‑business gross‑receipts threshold to match the amount defined in section 448(c)(1) (the current threshold for qualified small businesses).
Applies these changes to taxable years beginning after December 31, 2022.

Legislative Activity

Stay on top of the latest movement without scrolling through every action

1 earlier action

HouseIntro Referral Latest Action

Referred to the House Committee on Ways and Means.

Ways and Means Committee

June 28, 2022

View full timeline

HouseIntro Referral

Introduced in House

June 28, 2022

HouseIntro Referral

Referred to the House Committee on Ways and Means.

Ways and Means Committee

June 28, 2022

Bill Text

Latest available legislative text

Reading Mode

Raw Text PDF XML

Introduced in HouseIssued June 28, 2022

117th CONGRESS

2d Session

H. R. 8253

IN THE HOUSE OF REPRESENTATIVES

June 28, 2022

Mrs. Walorski (for herself and Mr. Arrington) introduced the following bill; which was referred to the Committee on Ways and Means

A BILL

To amend the Internal Revenue Code of 1986 to increase the research tax credit and provide better access to the credit for business startups.

Short title

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

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)

Modification of small business portion allowed against payroll tax

(1)

Increase in limitation

Paragraphs (4)(B)(i) and (5)(B)(ii) of section 41(h) of such Code are each amended by striking $250,000 and inserting $500,000.

(2)

Qualified small business gross receipts threshold

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, 2022.