H.R. 4779 – Small Business Jobs and Tax Relief Act of 2010

111th CONGRESS

2d Session

H. R. 4779

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.

Short title

This Act may be cited as the Small Business Jobs and Tax Relief Act of 2010.

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.

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.

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.

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.

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.

Small Business Jobs and Tax Relief Act of 2010

Legislative Activity

Floor Debate

Bill Text