1. Short title
This Act may be cited as the “Support Small Business R & D Act of 2020”.
Support Small Business R & D Act of 2020
A BILL
To amend the Small Business Act to expand tax credit education and training for small businesses that engage in research and development, and for other purposes.
2. Definitions
In this Act—
the terms Administration and Administrator mean the Small Business Administration and the Administrator thereof, respectively;
the term Commissioner means the Commissioner of Internal Revenue;
the term Export Assistance Center has the meaning given the term in section 22 of the Small Business Act (15 U.S.C. 649);
the term small business concern has the meaning given the term in section 3 of the Small Business Act (15 U.S.C. 632);
the term small business development center means a small business development center described in section 21 of the Small Business Act (15 U.S.C. 648);
the term veterans' business outreach center means a veterans' business outreach center described in section 32 of the Small Business Act (15 U.S.C. 657b); and
the term women's business center means a women's business center described in section 29 of the Small Business Act (15 U.S.C. 656).
3. SBA and IRS partnerships
Beginning not later than 180 days after the date of enactment of this Act, the Administrator, in consultation with the Commissioner, shall develop partnership agreements that—
provide for the development of—
basic training, including in-person or modular training sessions, relating to Federal income tax credits that benefit small business concerns and startups, especially credits for research and experimentation; and
informational materials relating to those credits, including Internal Revenue Service guidance documents;
provide the basic training and informational materials developed under paragraph (1)—
through electronic resources, including internet-based webinars; and
at physical locations, including small business development centers; and
make those materials available to—
business development programs administered by the Administration, including women’s business centers, veterans' business outreach centers, and Export Assistance Centers, and nonprofit research partners such as the Service Corps of Retired Executives authorized under section 8(b)(1)(B) of the Small Business Act (15 U.S.C. 637(b)(1)(B)); and
business development entities that partner with programs administered by the Administration, including universities, nonprofit organizations, business incubators, and business accelerators.
4. Reporting Requirement
Not later than 180 days after the date of enactment of this Act, the Administrator, in consultation with the Commissioner, shall submit to Congress a report describing how the Administration and the Internal Revenue Service will—
provide outreach and educational materials to small business concerns, businesses of medium size, and startups regarding section 41(h) of the Internal Revenue Code of 1986, as amended by section 121 of the Protecting Americans from Tax Hikes Act of 2015; and
help and encourage tax advisors to educate those businesses about the important amendments made by such Act to section 41 of such Code.
5. Small Business Development Centers
Section 21(c)(3) of the Small Business Act (15 U.S.C. 648(c)(3)) is amended—
in subparagraph (T), by striking “and” at the end;
in the first subparagraph designated as subparagraph (U), by striking the period at the end and inserting a semicolon;
by redesignating the second subparagraph designated as subparagraph (U) as subparagraph (V);
in subparagraph (V), as so redesignated, by striking the period at the end and inserting “; and”; and
by adding at the end the following:
“(W) in conjunction with the Internal Revenue Service, providing informational materials, education, and basic training—
“(i) to small business concerns relating to Federal income tax credits available under the Internal Revenue Code of 1986, including—
“(I) credits available to businesses generally; and
“(II) credits available to small business concerns and startups specifically, especially credits for research and experimentation; and
“(ii) which may be delivered—
“(I) in person; or
“(II) through an internet website.”