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S.193 - Startup Innovation Credit Act of 2013
A bill to amend the Internal Revenue Code of 1986 to provide for startup businesses to use a portion of the research and development credit to offset payroll taxes.
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Mr. COONS (for himself, Mr. ENZI, Mr. SCHUMER, Mr. RUBIO, Mr. BLUNT, Ms. STABENOW, and Mr. MORAN) introduced the following bill; which was read twice and referred to the Committee on FinanceCommentsClose CommentsPermalink
SECTION 1. SHORT TITLE.
SEC. 2. TREATMENT OF RESEARCH CREDIT FOR CERTAIN STARTUP COMPANIES.
‘(1) IN GENERAL- At the election of a qualified small business, the payroll tax credit portion of the credit determined under subsection (a) shall be treated as a credit allowed under section 3111(f) (and not under this section).CommentsClose CommentsPermalink
‘(2) PAYROLL TAX CREDIT PORTION- For purposes of this subsection, the payroll tax credit portion of the credit determined under subsection (a) for any taxable year is so much of such credit as does not exceed $250,000.CommentsClose CommentsPermalink
‘(II) in the case of an individual, by only taking into account the aggregate gross receipts received by such individual in carrying on trades or businesses of such individual.CommentsClose CommentsPermalink
‘(C) LIMITATION- A taxpayer may not make an election under this subsection if such taxpayer has made an election under this subsection for 5 or more preceding taxable years.CommentsClose CommentsPermalink
‘(5) AGGREGATION RULES- For purposes of determining the $250,000 limitation under paragraph (2) and determining gross receipts under paragraph (3), all members of the same controlled group of corporations (within the meaning of section 267(f)) and all persons under common control (within the meaning of section 52(b) but determined by treating an interest of more than 50 percent as a controlling interest) shall be treated as 1 person.CommentsClose CommentsPermalink
‘(C) regulations for recapturing the benefit of credits determined under section 3111(f) in cases where there is a subsequent adjustment to the payroll tax credit portion of the credit determined under subsection (a), including requiring amended returns in the cases where there is such an adjustment.’.CommentsClose CommentsPermalink
‘(5) TREATMENT OF QUALIFIED SMALL BUSINESS CREDIT- For purposes of determining the amount of any credit under section 41(a) under this subsection, any election under section 41(i) shall be disregarded.’.CommentsClose CommentsPermalink
‘(1) IN GENERAL- In the case of a qualified small business which has made an election under section 41(i), there shall be allowed as a credit against the tax imposed by subsection (a) on wages paid with respect to the employment of all employees of the qualified small business for days in an applicable calendar quarter an amount equal to the payroll tax credit portion of the research credit determined under section 41(a).CommentsClose CommentsPermalink
‘(2) CARRYOVER OF UNUSED CREDIT- In any case in which the payroll tax credit portion of the research credit determined under section 41(a) exceeds the tax imposed under subsection (a) for an applicable calendar quarter--CommentsClose CommentsPermalink
‘(B) the amount of credit allowed under paragraph (1) shall be reduced by the amount of credit allowed under such paragraph for all preceding applicable calendar quarters.CommentsClose CommentsPermalink
‘(B) the credit (if any) allowable by this section to each such member shall be its proportionate share of the qualified research expenses, basic research payments, and amounts paid or incurred to energy research consortiums, giving rise to the credit allowable under section 41.CommentsClose CommentsPermalink
‘(i) the first calendar quarter following the date on which the qualified small business files a return under section 6012 for the taxable year for which the payroll tax credit portion of the research credit under section 41(a) is determined, andCommentsClose CommentsPermalink
(2) TRANSFERS TO FEDERAL OLD-AGE AND SURVIVORS INSURANCE TRUST FUND- There are hereby appropriated to the Federal Old-Age and Survivors Trust Fund and the Federal Disability Insurance Trust Fund established under section 201 of the Social Security Act (
42 U.S.C. 401) amounts equal to the reduction in revenues to the Treasury by reason of the amendments made by paragraph (1). 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 extent possible the transfers which would have occurred to such Trust Fund had such amendments not been enacted.CommentsClose CommentsPermalink