Bill > S193

This bill, titled the Startup Innovation Credit Act of 2013, allows qualified small businesses to use a portion of their research and development (R&D) credit to offset payroll taxes. Specifically, a qualified small business, defined as an entity with less than $5 million in gross receipts for the current tax year and no gross receipts in the five preceding tax years (with some exceptions for individuals and excluding tax-exempt organizations), can elect to treat up to $250,000 of its R&D credit as a credit against its FICA (Federal Insurance Contributions Act) payroll taxes. This provision aims to provide financial relief to startups by allowing them to redirect funds that would otherwise be paid as payroll taxes towards their business operations, and it applies to taxable years beginning after December 31, 2012.