Code of 1986 is amended by striking subsection (a) and inserting subsections (a) and (b) and section 3301 . (2) Conforming amendments (A) Paragraph (2) of section 3111(f) of such Code is amended by striking the tax imposed by subsection (a) and inserting the sum of the taxes imposed by subsection (a), subsection (b), and section 3301 . (B) Section 3302 of such Code is amended by adding at the end the following new subsection: (i) Credit for research expenditures of qualified small businesses Any portion of the credit under section 3111(f) which is credited under such section to the tax under section 3301 shall be treated as a credit under this section. Subsection (c) shall not apply to any such credit. . (c) Doubling eligibility threshold Subclause (I) of section 41(h)(3)(A)(i) of the Internal Revenue Code of 1986 is amended by striking $5,000,000 and inserting $10,000,000 . (d) Effective date The amendments made by this section shall apply to taxable years beginning after December 31, 2019. 3. Modifications to alternative simplified credit for new and small businesses (a) In general Paragraph (4) of section 41(c) of the Internal Revenue Code of 1986 is amended by adding at the end the following new subparagraph: (D) Special rules for qualified small businesses In the case of a qualified small business (as defined in subsection (h)(3))— (i) Credit rate Subparagraph (A) shall be applied by substituting 20 percent for 14 percent . (ii) Special rule for 1st year of qualified research expenses If the taxpayer has no qualified research expenses in any taxable year preceding the taxable year for which the credit is being determined, subparagraph (B)(ii) shall be applied by substituting 20 percent for 6 percent . (iii) Special rule for other years If the taxpayer is not described in clause (ii) for the taxable year, and subparagraph (B) applies to such taxpayer for such year, at the election of the taxpayer— (I) subparagraph (B)(ii) shall be applied by substituting 10 percent for 6 percent , or (II) subparagraph (B)