The Consolidated Appropriations Act, 2016 (H.R.2029) was signed into law by the president on December 18, 2015. This law allows a qualified small business to elect for any taxable year to claim a certain amount of its research credit as a payroll tax credit against their employer’s portion of the social security tax liability rather than the federal income tax liability for the business. The Consolidated Appropriations Act, 2016 (H.R.2029) was signed into law by the president on December 18, 2015. This law allows a qualified small business to elect for any taxable year to claim a certain amount of its research credit as a payroll tax credit against their employer’s portion of the social security tax liability rather than the federal income tax liability for the business. If you are eligible for an R&D Credit, ADP Totalsource can file for a refund on your behalf. Refunds are based on the prior quarter’s withholding of Social Security taxes paid by the employer.