1. Short title This Act may be cited as the Furthering Our Recovery With American Research & Development Act or the FORWARD Act . 2. Treatment of credit for qualified small businesses (a) Gross receipts test (1) In general Clause (i) of section 41(h)(3)(A) of the Internal Revenue Code of 1986 is amended— (A) by striking $5,000,000 in subclause (I) and inserting $20,000,000 ; and (B) by striking gross receipts in subclause (II) and inserting gross receipts in excess of $25,000 . (2) Definition of gross receipts (A) In general Clause (i) of section 41(h)(3)(A)(i) of such Code, as amended by paragraph (1), is further amended— (i) by striking (as determined under the rules of section 448(c)(3), without regard to subparagraph (A) thereof) in subclause (I); and (ii) by striking (as so determined) in subclause (II). (B) Definition Subparagraph (A) of section 41(h)(3) of such Code, as so amended, is further amended by adding at the end the following flush sentence: For purposes of the preceding sentence, gross receipts shall be determined under the rules of section 448(c)(3) without regard to subparagraph (A) thereof, except that such term shall not include any contributions to the capital of a corporation (other than contributions by a shareholder) or any amount described in section 118(b) (other than receipts from customers in exchange for goods or services). . (b) Startup date Subclause (II) of section 41(h)(3)(A)(i) of the Internal Revenue Code of 1986 is amended by striking 5-taxable-year period and inserting 8-taxable-year period . (c) Limitation on election amount Clause (i) of section 41(h)(4)(B) of the Internal Revenue Code of 1986 is amended by striking $250,000 and inserting $1,000,000 . (d) Limitation on election Clause (ii) of section 41(h)(4)(B) of the Internal Revenue Code of 1986 is amended by striking 5 or more and inserting 8 or more . (e) Payroll tax credit portion Paragraph (2) of section 41(h) of the Internal Revenue Code of 1986 is amended— (1) by striking subparagraph (C)