The cap rises to $500,000, or $600,000 for a small business
What the document says“The credit allowable under subsection (a) for any taxable year shall not exceed $500,000 ($600,000 in the case of an eligible small business).”
The section rewrites subsection (b) of section 45F of the Internal Revenue Code of 1986 to cap the credit at $500,000 a year, or $600,000 for an eligible small business, with both figures rising from a taxable year beginning after 2026 by a cost of living adjustment measured from calendar year 2025.
What the document actually says“The credit allowable under subsection (a) for any taxable year shall not exceed $500,000 ($600,000 in the case of an eligible small business).”
The credit may not top $500,000 in a tax year. For a small business the cap is $600,000.
Both figures grow with prices after 2026. The growth follows a measure in the tax code. That code is not indexed here.
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