1. Short title This Act may be cited as the Research and Development Tax Credit Expansion Act of 2023 . 2. Expansion of refundable research credit for new and small businesses (a) Adjustment for inflation Paragraph (4) of section 41(h) of such Code is amended— (1) by redesignating subparagraph (C) as subparagraph (D), (2) by redesignating clause (ii) of subparagraph (B) as subparagraph (C), and by moving such subparagraph 2 ems to the left, (3) by striking Limitations in the heading of subparagraph (B) and inserting Limitation on amount of election , (4) by striking Amount in the heading of clause (i) of subparagraph (B) and inserting In general , and (5) by adding at the end of subparagraph (B), as amended by the preceding subparagraphs of this paragraph, the following new clause: (ii) Adjustment for inflation In the case of a taxable year beginning after 2024, the dollar amounts in clause (i) shall be increased by an amount equal to— (I) such dollar amount, multiplied by (II) the cost-of-living adjustment determined under section 1(f)(3) for the calendar year in which the taxable year begins, determined by substituting 2023 for 2016 in subparagraph (A)(ii) thereof. If any increase under the preceding sentence is not a multiple of $100, such increase shall be rounded to the nearest multiple of $100. . (b) Credit refundable against unemployment taxes (1) In general Section 3111(f)(1)(B) of the Internal Revenue Code of 1986 is amended by striking subsection (b) and inserting subsection (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 (b) and inserting the sum of the taxes imposed by Comprehensive Legislation Ensuring Accountability and Responsiveness Act of 2023 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