I
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
Credit rate increase
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
.
Alternative simplified credit
Section 41(c)(4)(A) of such Code is amended by striking 14 percent
and inserting 28 percent
.
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)
.
Modification of small business portion allowed against payroll tax
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
.
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)
.
Effective dates
The amendments made by this section shall apply to taxable years beginning after December 31, 2022.