Bill > S1920

This bill, titled the "Innovators Job Creation Act," aims to encourage innovation by extending and modifying the research and development (R&D) credit, a tax incentive for companies investing in new products and processes. Key provisions include making the R&D credit permanent, allowing it to be used against the Alternative Minimum Tax (AMT), and extending the carryback period for small businesses to claim unused credits. Additionally, it introduces a new option for qualified small businesses, defined as those with less than $5 million in gross receipts and in operation for five years or less, to elect to treat a portion of their R&D credit as a payroll tax credit, which can be applied against their FICA (Federal Insurance Contributions Act) taxes, effectively reducing their immediate tax burden. The bill also allows for elections related to the R&D credit to be made on amended tax returns, providing greater flexibility for businesses.