S. 78Senate111th Congress (2009-2011)In Committee

Invest in Small Business Act of 2009

Introduced January 6, 2009

Legislative Activity

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2 earlier actions
SenateIntro Referral Latest Action

Read twice and referred to the Committee on Finance.

January 6, 2009

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SenateIntro Referral

Introduced in Senate

January 6, 2009

SenateIntro Referral

Sponsor introductory remarks on measure. (CR S83-84)

January 6, 2009

SenateIntro Referral

Read twice and referred to the Committee on Finance.

January 6, 2009

Floor Debate

16 members

What members said about S. 78 on the floor

5 Republicans11 Democrats
Dianne Feinstein
Sen. Dianne FeinsteinD-CA · Jan 6, 2009

Mr. President, I am pleased to join Senators Schumer, Snowe, and Boxer in introducing legislation to prohibit the selling and counterfeiting of tickets to the Presidential inaugural ceremony. The…

Daniel K. Inouye
Sen. Daniel K. InouyeD-HI · Jan 6, 2009

Mr. President, today I introduce the Clinical Social Workers' Recognition Act to correct a continuing problem in the Federal Employees Compensation Act. This bill will also provide clinical social…

John McCain
Sen. John McCainR-AZ · Jan 6, 2009

Mr. President, I am pleased to be joined by Senator Ensign in introducing the Abolishing Aviation Barriers Act of 2009. This bill would remove the arbitrary restrictions that prevent Americans from…

Herb Kohl
Sen. Herb KohlD-WI · Jan 6, 2009

Mr. President, I rise today to introduce the Generics First Act. This legislation requires the Federal Government's Medicare Part D prescription drug program to use generic drugs whenever available,…

Patrick J. Leahy
Sen. Patrick J. LeahyD-VT · Jan 6, 2009

Mr. Presdient, as we begin the 111th Congress, we will try, once again, to enact comprehensive immigration reforms that have eluded us in the past several years. With an administration that…

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John F. Kerry
Sen. John F. KerryD-MA · Jan 6, 2009

Mr. President, it is my great hope that Congress will move this year to see that the successful, bipartisan State Children's Health Insurance Program, SCHIP, is allowed the opportunity to fulfill its…

Olympia J. Snowe
Sen. Olympia J. SnoweR-ME · Jan 6, 2009

Mr. President, I rise today to reintroduce a bill I offered last December that will provide much-needed relief to struggling families across America. The Unemployment Benefit Tax Suspension Act of…

Joseph I. Lieberman
Sen. Joseph I. LiebermanD-CT · Jan 6, 2009

Mr. President, I am honored to have the opportunity today, obviously early on this first day of this new session of Congress, together with my colleague from Utah, Senator Hatch, to introduce…

Richard J. Durbin
Sen. Richard J. DurbinD-IL · Jan 6, 2009

Mr. President, as the 111th Congress begins, the most important item on our agenda is to help end the worst economic crisis America has faced since the Great Depression. I look forward to working…

Russell D. Feingold
Sen. Russell D. FeingoldD-WI · Jan 6, 2009

Mr. President, I would like to thank the senior Senator from Wisconsin for his hard work to address antitrust issues in the rail industry along with other industries as Chairman of the Antitrust,…

Orrin G. Hatch
Sen. Orrin G. HatchR-UT · Jan 6, 2009

Mr. President, as I did in the last Congress, I am cosponsoring the legislation introduced today by the Senator from Connecticut to provide a House seat for the District of Columbia and an additional…

Kay Bailey Hutchison
Sen. Kay Bailey HutchisonR-TX · Jan 6, 2009

Mr. President, I am pleased to introduce a bill to permanently correct an injustice in the tax code that has harmed citizens in many States of this great Nation. State and local governments have…

Eleanor Holmes Norton
Rep. Eleanor Holmes NortonD-DC · Jul 20, 2010

Madam Speaker, I move to suspend the rules and pass the bill (H.R. 5545) to deauthorize a portion of the project for navigation, Potomac River, Washington Channel, District of Columbia, under the…

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James L. Oberstar
Rep. James L. OberstarD-MN-8 · Jul 20, 2010

Madam Speaker, I rise in support of H.R. 5545, a bill to deauthorize a portion of the project for navigation, Potomac River, Washington Channel, District of Columbia, under the jurisdiction of the…

Frank A. LoBiondo
Rep. Frank A. LoBiondoR-NJ-2 · Jul 20, 2010

Madam Speaker, I yield myself such time as I may consume. Today we're considering the deauthorization of a portion of a navigation channel in Washington, DC. The Washington Channel was authorized in…

Harry Reid
Sen. Harry ReidD-NV · Jan 6, 2009

Mr. President, I ask unanimous consent that the text of the bill be printed in the Record. Mr. President, I ask unanimous consent that the text of the joint resolution be printed in the Record.

Bill Text

Latest available legislative text

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Latest
Introduced in SenateIssued January 6, 2009
        [Congressional Bills 111th Congress]
[From the U.S. Government Printing Office]
[S. 78 Introduced in Senate (IS)]

111th CONGRESS
1st Session
S. 78

To amend the Internal Revenue Code of 1986 to provide a full exclusion
for gain from certain small business stocks.

_______________________________________________________________________

IN THE SENATE OF THE UNITED STATES

January 6, 2009

Mr. Kerry (for himself and Ms. Snowe) introduced the following bill;
which was read twice and referred to the Committee on Finance

_______________________________________________________________________

A BILL

To amend the Internal Revenue Code of 1986 to provide a full exclusion
for gain from certain small business stocks.

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 ``Invest in Small Business Act of
2009''.

SEC. 2. INCREASED EXCLUSION AND OTHER MODIFICATIONS APPLICABLE TO
QUALIFIED SMALL BUSINESS STOCK.

(a) Increased Exclusion.--
(1) 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 to read as
follows:
``(a) Exclusion.--Gross income shall not include 100 percent of any
gain from the sale or exchange of qualified small business stock held
for more than 4 years.''.
(2) Rule relating to stock held among members of controlled
group.--Subsection (c) of section 1202 of such Code is amended
by adding at the end the following new paragraph:
``(4) Stock held among members of 25-percent controlled
group not eligible.--
``(A) In general.--Stock of a member of a 25-
percent controlled group shall not be treated as
qualified small business stock while held by another
member of such group.
``(B) 25-percent controlled group.--For purposes of
subparagraph (A), the term `25-percent controlled
group' means any controlled group of corporations as
defined in section 1563(a)(1), except that--
``(i) `more than 25 percent' shall be
substituted for `at least 80 percent' each
place it appears in section 1563(a)(1), and
``(ii) section 1563(a)(4) shall not
apply.''.
(3) Conforming amendments.--
(A) Subsections (b)(2), (g)(2)(A), and (j)(1)(A) of
section 1202 of such Code are each amended by striking
``5 years'' and inserting ``4 years''.
(B) The heading for section 1202 of such Code is
amended by striking ``partial''.
(C) The item relating to section 1202 in the table
of sections for part I of subchapter P of chapter 1 of
such Code is amended by striking ``Partial exclusion''
and inserting ``Exclusion''.
(D) Section 1223(13) of such Code is amended by
striking ``1202(a)(2),''.
(b) Repeal of Minimum Tax Preference.--
(1) In general.--Subsection (a) of section 57 of the
Internal Revenue Code of 1986 (relating to items of tax
preference) is amended by striking paragraph (7).
(2) Technical amendment.--Subclause (II) of section
53(d)(1)(B)(ii) of such Code is amended by striking ``, (5),
and (7)'' and inserting ``and (5)''.
(c) Repeal of 28 Percent Capital Gains Rate on Qualified Small
Business Stock.--
(1) In general.--Subparagraph (A) of section 1(h)(4) of the
Internal Revenue Code of 1986 is amended to read as follows:
``(A) collectibles gain, over''.
(2) Conforming amendments.--
(A) Section 1(h) of such Code is amended by
striking paragraph (7).
(B)(i) Section 1(h) of such Code is amended by
redesignating paragraphs (8), (9), (10), (11), (12),
and (13) as paragraphs (7), (8), (9), (10), (11), and
(12), respectively.
(ii) Sections 163(d)(4)(B), 854(b)(5), 857(c)(2)(D)
of such Code are each amended by striking ``section
1(h)(11)(B)'' and inserting ``section 1(h)(10)(B)''.
(iii) The following sections of such Code are each
amended by striking ``section 1(h)(11)'' and inserting
``section 1(h)(10)'':
(I) Section 301(f)(4).
(II) Section 306(a)(1)(D).
(III) Section 584(c).
(IV) Section702(a)(5).
(V) Section 854(a).
(VI) Section 854(b)(2).
(iv) The heading of section 857(c)(2) is amended by
striking ``1(h)(11)'' and inserting ``1(h)(10)''.
(d) Increase Aggregate Asset Limitation for Qualified Small
Businesses.--
(1) In general.--Paragraph (1) of section 1202(d) of the
Internal Revenue Code of 1986 (relating to qualified small
business) is amended by striking ``$50,000,000'' each place it
appears and inserting ``$100,000,000''.
(2) Inflation adjustment.--Section 1202(d) of such Code is
amended by adding at the end the following new paragraph:
``(4) Inflation adjustment.--
``(A) In general.--In the case of any taxable year
beginning in a calendar year after 2009, each of the
$100,000,000 dollar amounts in paragraph (1) shall be
increased by an amount equal to--
``(i) such dollar amount, multiplied by
``(ii) the cost-of-living adjustment
determined under section 1(f)(3) for the
calendar year in which the taxable year begins,
determined by substituting `calendar year 2008'
for `calendar year 1992' in subparagraph (B)
thereof.
``(B) Rounding.--If any amount as adjusted under
subparagraph (A) is not a multiple of $1,000, such
amount shall be rounded to the next lowest multiple of
$100.''.
(e) Effective Date.--
(1) In general.--The amendments made by this section apply
to stock issued after December 31, 2009.
(2) Special rule for stock issued before january 1, 2010.--
The amendments made by subsections (a), (b), and (c) shall
apply to sales or exchanges--
(A) made after December 31, 2009,
(B) of stock issued before such date,
(C) by a taxpayer other than a corporation.
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