I
111th CONGRESS
2d Session
H. R. 5277
IN THE HOUSE OF REPRESENTATIVES
May 11, 2010
Mr. Wilson of Ohio 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 allow a business credit for small business loans.
Short title
This Act may be cited as the
Small Business Lending Incentive
Program Act of 2010
.
Credit for small business loans
In general
Subpart D of part IV of subchapter A of chapter 1 of the Internal Revenue Code of 1986 (relating to business related credits) is amended by adding at the end the following new section:
Small business loans
General rule
For purposes of section 38, the small business loan credit for any taxable year is an amount equal to 1 percent of aggregate qualified loans made during the taxable year.
Limitation
The number of qualified loans taken into account under subsection (a) for a taxable year may not exceed 20.
Definitions
For purposes of this section—
Qualified loan
The term qualified loan means a loan made by an eligible bank to a small business concern, the principal amount of which does not exceed $500,000.
Small business concern
The term small business concern has the same meaning as such term has under section 3 of the Small Business Act (15 U.S.C. 632).
Eligible bank
The term eligible bank means a bank the total assets of which at the close of the preceding taxable year do not exceed $10,000,000,000.
Bank
The term bank means—
a bank (as defined in section 581),
a bank holding company (as defined in section 2(a) of the Bank Holding Company Act of 1956 (12 U.S.C. 1841(a))),
a savings association (as defined in section 3(b) of the Federal Deposit Insurance Act (12 U.S.C. 1813)), and
a savings and loan holding company (as defined in section 10(a)(1)(D) of the Home Owners Loan Act).
Termination
This section shall not apply to loans made after the first 2 taxable years beginning on the date of the enactment of this section.
.
Credit allowed as part of general business credit
Section 38(b) of such Code
(defining current year business credit) is amended by striking
plus
at the end of paragraph (34), by striking the period at the
end of paragraph (35) and inserting , plus
, and by adding at the
end the following new paragraph:
the small business loan credit determined under section 45S.
.
Conforming amendment
The table of sections for subpart D of part IV of subchapter A of chapter 1 of such Code is amended by adding at the end the following new item:
.
Effective date
The amendments made by this section shall apply to taxable years beginning after the date of enactment of this Act.