To amend the Internal Revenue Code of 1986 to provide an exception from the passive loss rules for investments in high technology research small business pass-thru entities.

[AI summary unavailable — showing source text] Amends the Internal Revenue Code to exempt from passive loss rules any activity of a taxpayer carried on by a high technology research small business pass-thru entity. Defines "high technology research small business pass-thru entity" as any domestic pass-thru entity that: (1) spends a specified percentage of its income on research, (2) is a small business with 250 or fewer employees, and (3) does not have aggregate gross receipts in excess of $150 million.…