Bill > S866

This bill aims to enhance tax benefits for research and development activities in the United States. The key provisions are: 1. Restoring immediate expensing for research and development (R&D) investments, allowing businesses to deduct R&D expenses in the year they are incurred instead of having to amortize them over multiple years. 2. Expanding the refundable research credit for new and small businesses by gradually increasing the cap on the refundable credit from $250,000 to $750,000 over a 10-year period. 3. Extending the eligibility and applicability of the research credit election for startup businesses by increasing the startup period from 5 to 8 years and the credit eligibility period from 5 to 8 years or more. 4. Increasing the access to the research credit for qualified small businesses by raising the gross receipts threshold and allowing them to claim a higher credit rate of 20% (up from 14%) and, in certain cases, to disregard years with no qualified research expenses when calculating the credit. The overall goal of this bill is to encourage and support research and innovation activities by providing more favorable tax treatment for businesses, especially new and small companies, that invest in research and development.

Budget and Finance

https://www.congress.gov/bill/118th-congress/senate-bill/866/all-info