[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4779 Introduced in House (IH)]
111th CONGRESS
2d Session
H. R. 4779
To amend the Internal Revenue Code of 1986 to encourage the creation
and growth of small business and reduce the cost of complying with the
tax requirements.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
March 4, 2010
Mr. Pomeroy (for himself and Mr. Moran of Kansas) introduced the
following bill; which was referred to the Committee on Ways and Means
_______________________________________________________________________
A BILL
To amend the Internal Revenue Code of 1986 to encourage the creation
and growth of small business and reduce the cost of complying with the
tax requirements.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Small Business Jobs and Tax Relief
Act of 2010''.
SEC. 2. EXTEND TEMPORARY BONUS DEPRECIATION FOR CERTAIN PROPERTY.
(a) Extension of Special Allowance.--
(1) In general.--Paragraph (2) of section 168(k) of the
Internal Revenue Code of 1986 is amended--
(A) by striking ``January 1, 2011'' and inserting
``January 1, 2012'', and
(B) by striking ``January 1, 2010'' each place it
appears and inserting ``January 1, 2011''.
(2) Conforming amendments.--
(A) The heading for subsection (k) of section 168
of such Code is amended by striking ``January 1, 2010''
and inserting ``January 1, 2011''.
(B) The heading for clause (ii) of section
168(k)(2)(B) of such Code is amended by striking ``pre-
january 1, 2010'' and inserting ``pre-january 1,
2011''.
(C) Subparagraph (B) of section 168(l)(5) of such
Code is amended by striking ``January 1, 2010'' and
inserting ``January 1, 2011''.
(D) Subparagraph (C) of section 168(n)(2) of such
Code is amended by striking ``January 1, 2010'' and
inserting ``January 1, 2011''.
(E) Subparagraph (B) of section 1400N(d)(3) of such
Code is amended by striking ``January 1, 2010'' and
inserting ``January 1, 2011''.
(b) Extension of Election To Accelerate the AMT and Research
Credits in Lieu of Bonus Depreciation.--Section 168(k)(4) of such Code
(relating to election to accelerate the AMT and research credits in
lieu of bonus depreciation) is amended--
(1) by striking ``2009'' and inserting ``2010'' in
subparagraph (D)(iii) (as redesignated by subsection (a)(3)),
and
(2) by adding at the end the following new subparagraph:
``(I) Special rules for extension property.--
``(i) Taxpayers previously electing
acceleration.--In the case of a taxpayer who
made the election under subparagraph (A) for
its first taxable year ending after March 31,
2008--
``(I) the taxpayer may elect not to
have this paragraph apply to extension
property, but
``(II) if the taxpayer does not
make the election under subclause (I),
in applying this paragraph to the
taxpayer a separate bonus depreciation
amount, maximum amount, and maximum
increase amount shall be computed and
applied to eligible qualified property
which is extension property and to
eligible qualified property which is
not extension property.
``(ii) Taxpayers not previously electing
acceleration.--In the case of a taxpayer who
did not make the election under subparagraph
(A) for its first taxable year ending after
March 31, 2008--
``(I) the taxpayer may elect to
have this paragraph apply to its first
taxable year ending after December 31,
2009, and each subsequent taxable year,
and
``(II) if the taxpayer makes the
election under subclause (I), this
paragraph shall only apply to eligible
qualified property which is extension
property.
``(iii) Extension property.--For purposes
of this subparagraph, the term `extension
property' means property which is eligible
qualified property solely by reason of the
extension of the application of the special
allowance under paragraph (1) pursuant to the
amendments made by section 3(a) of the Small
Business Jobs and Tax Relief Act of 2010 (and
the application of such extension to this
paragraph pursuant to the amendment made by
section 3(b)(1) of such Act).
``(b) Limitation.--The amount taken into account under subsection
(a) shall not exceed $1,500 for each vehicle on which an idling
reduction device is affixed.''.
(c) Effective Dates.--The amendments made by this section shall
apply to property placed in service after December 31, 2009, in taxable
years ending after such date.
SEC. 3. INCREASE IN AMOUNT ALLOWED AS DEDUCTION FOR START-UP
EXPENDITURES.
(a) In General.--Subsection (b) of section 195 of the Internal
Revenue Code of 1986 is amended by adding at the end the following:
``(3) Special rule for taxable years beginning in 2009,
2010, or 2011.--In the case of a taxable year beginning in
2010, 2011, or 2012, paragraph (1)(A)(ii) shall be applied--
``(A) by substituting `$20,000' for `$5,000', and
``(B) by substituting `$75,000' for `$50,000'.''.
(b) Effective Date.--The amendments made by this section shall
apply to amounts paid or incurred in taxable years beginning after the
date of the enactment of this Act.
SEC. 4. REMOVAL OF CELLULAR TELEPHONES (OR SIMILAR TELECOMMUNICATIONS
EQUIPMENT) FROM LISTED PROPERTY.
(a) In General.--Subparagraph (A) of section 280F(d)(4) of the
Internal Revenue Code (defining listed property) is amended by
inserting ``and'' at the end of clause (iv), by striking clause (v),
and by redesignating clause (vi) as clause (v).
(b) Effective Date.--The amendment made by subsection (a) shall
apply to taxable years beginning after January 1, 2009.
SEC. 5. NONRECOURSE SMALL BUSINESS INVESTMENT COMPANY LOANS FROM THE
SMALL BUSINESS ADMINISTRATION TREATED AS AMOUNTS AT RISK.
(a) In General.--Subparagraph (B) of section 465(b)(6) of the
Internal Revenue Code of 1986 is amended to read as follows:
``(B) Qualified nonrecourse financing.--For
purposes of this paragraph--
``(i) In general.--The term `qualified
nonrecourse financing' means any financing--
``(I) which is qualified real
property financing or qualified SBIC
financing,
``(II) except to the extent
provided in regulations, with respect
to which no person is personally liable
for repayment, and
``(III) which is not convertible
debt.
``(ii) Qualified real property financing.--
The term `qualified real property financing'
means any financing which--
``(I) is borrowed by the taxpayer
with respect to the activity of holding
real property,
``(II) is secured by real property
used in such activity, and
``(III) is borrowed by the taxpayer
from a qualified person or represents a
loan from any Federal, State, or local
government or instrumentality thereof,
or is guaranteed by any Federal, State,
or local government.
``(iii) Qualified sbic financing.--The term
`qualified SBIC financing' means any financing
which--
``(I) is borrowed by a small
business investment company (within the
meaning of section 301 of the Small
Business Investment Act of 1958),
``(II) is secured by property used
or held, directly or indirectly, by
such small business investment company,
and
``(III) is borrowed from, or
guaranteed by, the Small Business
Administration under the authority of
section 303(b) of such Act.''.
(b) Conforming Amendments.--Subparagraph (A) of section 465(b)(6)
of such Code is amended--
(1) by striking ``in the case of an activity of holding
real property,'', and
(2) by striking ``which is secured by real property used in
such activity''.
(c) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after the date of the enactment of
this Act.
SEC. 6. TEMPORARY EXCLUSION OF 100 PERCENT OF GAIN ON CERTAIN SMALL
BUSINESS STOCK.
(a) In General.--Subsection (a) of section 1202 of the Internal
Revenue Code of 1986 (relating partial exclusion for gain from certain
small business stock) is amended by adding at the end the following new
paragraph:
``(4) 100 exclusion for stock acquired during 2010.--In the
case of qualified small business stock acquired during 2010--
``(A) paragraph (1) shall be applied by
substituting `100 percent' for `50 percent',
``(B) paragraph (2) shall not apply, and
``(C) paragraph (7) of section 57(a) shall not
apply.''.
(b) Conforming Amendment.--Paragraph (3) of section 1202 (a) of
such Code is amended--
(1) by striking ``and 2010'' in the heading, and
(2) by striking ``January 1, 2011'' and inserting ``January
1, 2010''.
(c) Effective Date.--The amendments made by this section shall
apply to stock acquired after December 31, 2009.
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