To amend the Internal Revenue Code of 1986 to make a portion of research credit refundable for certain small businesses engaging in specified medical research.
Impact
The bill, if enacted, would modify existing tax structures to extend support directly to small medical research firms, thereby impacting how these businesses manage their finances and seek funding for research initiatives. A refundable credit would assist them in offsetting research costs, which can be significant, and provide an essential cash flow during early-stage or innovative projects. Furthermore, such amendment intends to stimulate growth within the small business community focusing on medical advancements, which is crucial for public health and economic development.
Summary
House Bill 5206 aims to amend the Internal Revenue Code of 1986 by making a portion of the research credit refundable specifically for small businesses engaged in specified medical research. This legislative act is designed to provide financial relief and encouragement for domestic C corporations that conduct significant medical research and have gross receipts not exceeding $1,000,000. By allowing these small businesses to elect a refundable credit, the bill seeks to promote innovation and development within the medical research sector.
Contention
While the bill poses potential benefits, discussions surrounding HB 5206 may center on the implications of extending specific tax advantages to small businesses. Supporters argue that this can enhance medical research outcomes and public health efforts, while critics may express concerns about the fiscal responsibility of such incentives. Questions about equitable treatment of larger corporations versus smaller ones, as well as the effectiveness of targeted tax credits in promoting innovation, are likely to arise in legislative discussions.
To amend the Internal Revenue Code of 1986 to provide a credit to small businesses for research activities related to the mitigation of certain drug threats.
To amend the Internal Revenue Code of 1986 to allow certain credits and deductions to be taken as a refundable tax credit by Puerto Rico businesses or residents, and to extend such credits and deductions to possessions of the United States.
To amend the Internal Revenue Code of 1986 to provide a tax credit for expenses for household and elder care services necessary for gainful employment.