Fostering Innovation and Research to Strengthen Tomorrow Act
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.
To amend the Internal Revenue Code of 1986 to increase the research tax 
 credit and provide better access to the credit for business startups.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Fostering Innovation and Research to 
Strengthen Tomorrow Act''.

SEC. 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) Modification of Small Business Portion Allowed Against Payroll 
Tax.--
            (1) Increase in limitation.--Paragraphs (4)(B)(i) and 
        (5)(B)(ii) of section 41(h) of such Code are each amended by 
        striking ``$250,000'' and inserting ``$500,000''.
            (2) Qualified small business gross receipts threshold.--
        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, 2022.
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Fostering Innovation and Research to Strengthen Tomorrow Act
To amend the Internal Revenue Code of 1986 to increase the research tax credit and provide better access to the credit for business startups.
Fostering Innovation and Research to Strengthen Tomorrow Act
Rep. Walorski, Jackie