of any unused business credit carryforward under 
section 39 that— 
‘‘(A) is attributable to the credit deter-
mined under section 41 or the credit deter-
mined under section 45C, and 
‘‘(B) 
is 
an 
unused 
business 
credit 
carryforward carried to a taxable year begin-
ning on or after January 1, 2020, and before 
January 1, 2022, and that arose in taxable 
years beginning after January 1, 2015. 
‘‘(2) LIMITATION.—The amount elected under 
paragraph (1) for a taxable year may not exceed the 
excess of $25,000,000 reduced by the amount elect-
ed for the taxable year as an advance refund of net 
operating loss carryovers under section 172(g). 
‘‘(3) INAPPLICABILITY OF SECTIONS 38(c) AND 
383(a).—For purposes of this subsection, the 
amount of any advance refund shall be computed 
without respect to the limitations under sections 
38(c) and 383(a). 
‘‘(4) REGULATIONS AND GUIDANCE.—The Sec-
retary shall issue such regulations and other guid-
ance as may be necessary— 
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‘‘(A) to allow for the making of an election 
under paragraph (1) in such manner as the 
Secretary may by regulations prescribe, 
‘‘(B) to allow the advance refund under 
this subsection and section 6429 based on such 
information as the Secretary shall require, and 
‘‘(C) to allow advance refunds under this 
section to be claimed on such forms as the Sec-
retary shall prescribe.’’. 
(c) ADVANCE REFUND OF CERTAIN NET OPERATING 
LOSSES, RESEARCH CREDIT, AND ORPHAN DRUG CRED-
IT.— 
(1) IN GENERAL.—Subchapter B of chapter 65 
of such Code is amended by inserting after section 
6428 the following new section: 
‘‘SEC. 6429. ADVANCE REFUND OF CERTAIN NET OPER-
ATING LOSSES, RESEARCH CREDIT, AND OR-
PHAN DRUG CREDIT. 
‘‘(a) IN GENERAL.—In the case of a C corporation, 
the advance refund sum may be claimed by the taxpayer 
as follows: 
‘‘(1) PAYROLL TAXES.—First, by reducing de-
posits or payments of— 
‘‘(A) the applicable employment taxes im-
posed 
under 
sections 
3101(a), 
3101(b), 
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3111(a), and 3111(b) (reduced by any credits 
allowed under subsections (e) and (f) of section 
3111, sections 7001 and 7003 of the Families 
First Coronavirus Response Act and section 
2301 of the Coronavirus, Aid, Relief, and Eco-
nomic Security Act) on the wages paid with re-
spect to the employment of all the employees of 
the taxpayer for a calendar quarter, and 
‘‘(B) the withholding taxes required to be 
paid by an employer pursuant to section 3403, 
with the balance of the advance refund payable 
to the taxpayer. 
‘‘(2) ADVANCE
REFUNDABILITY
OF
EXCESS 
LOSSES.—Second, any remaining amount to be re-
funded to the taxpayer after the application of para-
graph (1) shall be treated as an overpayment and 
shall be refunded in a manner similar to that pre-
scribed in subsection 2301(b)(3) of the Coronavirus, 
Aid, Relief, and Economic Security Act. 
‘‘(b) ADVANCE REFUND SUM.—For purposes of sub-
section (a), the term ‘advance refund sum’ means the sum 
of— 
‘‘(1) the amount elected by the taxpayer as an 
advance refund of net operating loss carryovers 
under section 172(g), and 
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‘‘(2) the amount of any unused business credit 
carryforward elected under section 39(e) that is at-
tributable to the research credit determined under 
section 41 or the orphan drug credit determined 
under section 45C. 
‘‘(c) RECAPTURE.— 
‘‘(1) IN
GENERAL.—The Secretary shall, by 
regulations, provide for recapturing the benefit of 
any advance refund allowable under this section if 
there is a sale or full or partial liquidation of the 
corporation during the recapture period. The recap-
ture amount shall not exceed the lesser of— 
‘‘(A) the amount of any proceeds or dis-
tributions received by shareholders of the cor-
poration attributable to such sale or liquidation, 
or 
‘‘(B) the amount that the advance refund 
exceeds the aggregate amount spent by the cor-
poration on payroll, research expenses, and 
property, plant and equipment during the re-
capture period. 
‘‘(2) RECAPTURE
PERIOD.—For purposes of 
paragraph (1), the term ‘recapture period’ means 
the two-year period beginning on the date of the ad-
vance refund.’’. 
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(2) TRANSFERS
TO
FEDERAL
OLD-AGE
AND 
SURVIVORS
INSURANCE
TRUST
FUND.—There are 
hereby appropriated to the Federal Old-Age and 
Survivors Insurance Trust Fund and the Federal 
Disability Insurance Trust Fund established under 
section 201 of the Social Security Act (42 U.S.C. 
401), the Federal Hospital Insurance Trust Fund 
established under section 1817(a) of the Social Se-
curity Act (42 U.S.C. 1395i(a)), and the Social Se-
curity Equivalent Benefit Account established under 
section 15A(a) of the Railroad Retirement Act of 
1974 (45 U.S.C. 14 231n–1(a)) amounts equal to 
the reduction in revenues to the Treasury by reason 
of this section (without regard to this subsection). 
Amounts appropriated by the preceding sentence 
shall be transferred from the general fund at such 
times and in such manner as to replicate to the ex-
tent possible the transfers which would have oc-
curred to such Trust Fund or Account had this sec-
tion not been enacted. 
(3) CLERICAL AMENDMENT.—The table of sec-
tions for subchapter B of chapter 65 of such Code 
is amended by inserting after the item relating to 
section 6428 the following new item: 
‘‘Sec. 6429. Advance refund of certain net operating losses, research credit, and 
orphan drug credit.’’. 
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(d) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2019. 
SEC. 3. ENHANCED RESEARCH CREDIT FOR COVID–19 EX-
PENDITURES. 
(a) IN GENERAL.—Section 41 of the Internal Rev-
enue Code of 1986 is amended by adding at the end the 
following: 
‘‘(i) ENHANCED CREDIT FOR COVID–19 RESEARCH 
EXPENDITURES.— 
‘‘(1) IN
GENERAL.—For purposes of deter-
mining the amount of qualified research expenses 
under subsection (b) for the taxable year, the 
amount of any qualified COVID–19 research ex-
penditures paid or incurred by a taxpayer on or 
after February 15, 2020, and before January 1, 
2022, shall be equal to 200 percent of the amount 
paid or incurred. 
‘‘(2) QUALIFIED COVID–19 RESEARCH EXPENDI-
TURES.—The term ‘qualified COVID–19 research 
expenditures’ has the meaning given such term by 
section 172(g)(2).’’. 
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