SUPPLEMENTARY INFORMATION:

I. Abstract

In an effort to improve the measurement of business dynamics in the United States, the Census Bureau is conducting the Annual Business Survey (ABS). The ABS combines Census Bureau firm-level collections to reduce respondent burden, increase data quality, reduce operational costs, and operate more efficiently. The ABS measures research and development (R&D), innovation, business owner characteristics, and other topics of interest. The ABS is a joint statistical project between the Census Bureau and the National Center for Science and Engineering Statistics (NCSES) within the U.S. National Science Foundation (NSF).

The 2026 ABS (collected during 2027) will remove the following business owner demographic questions:

• Race
• Ethnicity
• Sex
• Place of Birth
• U.S. Citizenship, and
• Age

Estimates for this data will be produced through use of various administrative data. The Census Bureau, in collaboration with NCSES, plans to research additional administrative and survey data sources to replace the other owner characteristics questions on the survey in future survey cycles. While this research continues, select business owner characteristics questions ( e.g., disability, education level) will remain ( printed page 66670) on the survey. The Business Enterprise Research and Development survey (BERD), which merged with the ABS beginning with reference year 2025, will continue to be included within the ABS.

The ABS will sample 230,000 businesses and nonprofit organizations (222,000 employer business; 8,000 nonprofit organizations). The ABS includes all nonfarm employer businesses filing Internal Revenue Service (IRS) tax forms as individual proprietorships, partnerships, or any other type of corporation, with non-zero receipts or payroll. Also included are nonprofit organizations to measure their research activities. The ABS samples approximately 8,000 nonprofit organizations who are required to complete IRS form 990. The nonprofit sample will yield national estimates of R&D performance within the nonprofit sector. Of note, nonprofit organizations will only see questions relating to research activities and will not be asked any questions relating to owner demographics.

The ABS is designed to incorporate new content, on a rotating basis, each survey year based on topics of relevance. Each year new questions are submitted to the OMB for approval.

The 2026-2028 ABS will collect the following information from employer businesses:

• Company information including sales, employees, and business ownership from all employer businesses.
• Select business owner characteristics questions (e.g., disability, education level) from the principal owner(s) of the business.
• Business characteristics from all employer businesses.
• Research, development, and related topics from select businesses and nonprofits.
• Innovation data and data on critical and emerging technologies from all employer businesses.
• Management practices and employee training data from all employer businesses.
• Intellectual property protection and technology transfer data from all employer businesses.
• Other potential module topics such as cybersecurity and financing.

II. Method of Collection

The ABS utilizes an online survey instrument. Respondents are mailed and emailed letters directing them to create a Census account and access the survey through their account. The online survey automatically skips questions that do not apply and checks for common errors. Detailed question instructions will be embedded in the electronic instrument where appropriate. Responses will be due approximately 30 days from initial mailing.

III. Data

OMB Control Number: 0607-1004.

Form Number(s): ABS-1.

Type of Review: Regular submission, Request for a Revision of a Currently Approved Collection.

Affected Public: Businesses or other for-profit organizations (large and small employer businesses), nonprofit organizations.

Estimated Number of Respondents: 174,500 Employer Businesses without BERD Content; 47,500 Employer Businesses with BERD Content, and 8,000 Nonprofit Organizations

Estimated Time per Response: Respondents with Employer Businesses Without BERD Content—45 minutes; Respondents with BERD Content—3 hours and 22 minutes to respond; Nonprofit organizations—38 minutes.

Estimated Total Annual Burden Hours: 295,858.

Estimated Total Annual Cost to Public: $0. (This is not the cost of respondents' time, but the indirect costs respondents may incur for such things as purchases of specialized software or hardware needed to report, or expenditures for accounting or records maintenance services required specifically by the collection.)

Respondent's Obligation: Mandatory.

Legal Authority: Title 13, United States Code, Sections 8(b), 131, and 182; Title 42, United States Code, Section 1861-76 (National Science Foundation Act of 1950, as amended); and Section 505 within the America COMPETES Reauthorization Act of 2010 authorize this collection. Sections 224 and 225 of Title 13, United States Code, require response from sampled firms.

IV. Request for Comments

We are soliciting public comments to permit the Department/Bureau to: (a) Evaluate whether the proposed information collection is necessary for the proper functions of the Department, including whether the information will have practical utility; (b) Evaluate the accuracy of our estimate of the time and cost burden for this proposed collection, including the validity of the methodology and assumptions used; (c) Evaluate ways to enhance the quality, utility, and clarity of the information to be collected; and (d) Minimize the reporting burden on those who are to respond, including the use of automated collection techniques or other forms of information technology.

Comments that you submit in response to this notice are a matter of public record. We will include, or summarize, each comment in our request to OMB to approve this ICR. Before including your address, phone number, email address, or other personal identifying information in your comment, you should be aware that your entire comment—including your personal identifying information—may be made publicly available at any time. While you may ask us in your comment to withhold your personal identifying information from public review, we cannot guarantee that we will be able to do so.

91 FR 66669