Bill · H.R. 4933· House(119-HR-4933)
Research and Development Tax Credit Expansion Act of 2025
- Introduced
- 8/8/2025
- Last activity
- 8/8/2025 — Referred to the House Committee on Ways and Means.
- Sponsored by
- Joe Neguse
- Cosponsors
- None
- Introduced
- In Committee
What this bill would do
This bill, titled the ``Research and Development Tax Credit Expansion Act of 2025'', aims to change the Internal Revenue Code of 1986. It seeks to expand eligibility and simplify the research credit for certain small businesses. The legislation includes adjustments for inflation regarding specific dollar amounts. It also modifies how the credit is applied against unemployment taxes. Additionally, it expands the definition of a qualified small business and modifies the alternative simplified credit. These changes are intended to take effect for taxable years beginning after December 31, 2025.
Yes· 3 of 6
Does this make it easier to run a small business?+7
The bill directly supports small businesses by increasing their eligibility for and the amount of the research credit.
Would business owners be better off under this?+7
Small business owners benefit from increased R&D credit rates and expanded eligibility thresholds.
Does this cut taxes for small businesses?+6
The bill expands the definition of a qualified small business and increases the research credit rate from 14 to 20 percent.
The opposite
No question was scored the opposite.
Who it would affect, and how
Potential Positive Impacts for People
-
Inflation Protection: The bill implements an adjustment for inflation for certain dollar amounts in taxable years beginning after 2026, which helps maintain the value of the credit (Section 2(a)).
-
Expanded Business Eligibility: The definition of a qualified small business is expanded by increasing a specific threshold from $5,000,000 to $10,000,000 (Section 2(c)).
-
Increased Credit Rates for Small Businesses: Qualified small businesses may benefit from a higher credit rate of 20 percent instead of 14 percent (Section 3(a)(i)).
-
First-Year Research Incentives: For taxpayers with no prior qualified research expenses, the credit rate for those expenses can be increased from 6 percent to 20 percent (Section 3(a)(ii)).
-
Flexibility in Subsequent Years: In years following the first year, taxpayers can elect to have a 10 percent rate applied or choose to disregard years where no research expenses occurred when determining their average (Section 3(a)(iii)).
Potential Negative Impacts for People
- No specific negative impacts are explicitly stated in the provided text.
Groups and Interests Ranking
Every group the model scored this bill for, from -10 to +10. Hover a score for the reason it gave.
- Economy And Finance
- Improves Small Business Support+7Reduces Small Business Taxes+6Improves Economic Growth+4Increases Job Creation+3
- Demographic And Interest Groups
- Good For Business Owners+7
- Education And Technology
- Increases Scientific Research Funding+5
- 8/8/2025
- Referred to the House Committee on Ways and Means.
- Introduced in House