Fostering Innovation and Research to Strengthen Tomorrow Act

Bill: 118-hr-5056
Sponsor: full_name: Rep. Tenney, Claudia [R-NY-24]
Introduced: 2023-07-27
Policy area: Taxation
Latest action: action_date: 2023-07-27
text: Referred to the House Committee on Ways and Means.

Summaries:
action_date: 2023-07-27
action_desc: Introduced in House
text: <p><strong>Fostering Innovation and Research to Strengthen Tomorrow Act</strong></p> <p>This bill doubles the rate of the tax credit for increasing research expenses and the alternative simplified research tax credit. It also increases the credit rate for taxpayers with no research expenses during a specified three-year period and the amount of the credit that certain small businesses may apply against payroll tax liabilities.</p>

tv_txt: I 118th CONGRESS 1st Session H. R. 5056 IN THE HOUSE OF REPRESENTATIVES July 27, 2023 Ms. Tenney (for herself, Mr. Buchanan , and Mr. Feenstra ) 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.

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.