Ask AI
H.R. 4855

To amend the Internal Revenue Code of 1986 to provide an exception from the passive loss rules for investments in high technology research small business pass-thru entities.

Amends the Internal Revenue Code to exempt from the definition of "passive activity," for purposes of the passive loss tax rules, any qualified research activity carried on by a high technology research small business pass-thru entity.

Defines "high technology research small business pass-thru entity" as any domestic pass-thru entity if: (1) more than 75% of the entity's expenditures are paid or incurred in connection with qualified research, or (2) more than 50% of the entity's expenditures constitute qualified research expenses. Designates a high technology research entity as a small business if such entity has 250 or fewer full-time employees and does not have aggregate gross assets in excess of $150 million.

Referred to the House Committee on Ways and Means.

Rep. Gerlach, Jim [R-PA-6](R-PA)Sponsor
5 cosponsors3 D2 R
5cosponsors1committees3actions3related bills10subjects
  1. IntroReferralH11100

    Referred to the House Committee on Ways and Means.

    Ways and Means Committee
  2. IntroReferralIntro-H

    Introduced in House

  3. IntroReferral1000

    Introduced in House

To amend the Internal Revenue Code of 1986 to provide an exception from the passive loss r… — Informed