I
112th CONGRESS
1st Session
H. R. 3476
IN THE HOUSE OF REPRESENTATIVES
November 18, 2011
Mr. Hanna (for himself and Mr. Keating) introduced the following bill; which was referred to the Committee on Ways and Means, and in addition to the Committees on the Judiciary and Financial Services, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned
A BILL
To provide incentives for economic growth, and for other purposes.
Short title; table of contents
Short title
This Act may be cited
as the American Growth, Recovery,
Empowerment, and Entrepreneurship Act
or the
AGREE
Act
.
Table of contents
The table of contents for this Act is as follows:
Sec. 1. Short title; table of contents.
TITLE I—Extending tax relief for small businesses
Sec. 101. Extension of bonus depreciation; temporary 100 percent expensing for certain business assets.
Sec. 102. Extension of increased expensing limitations and treatment of certain real property as section 179 property.
Sec. 103. Temporary exclusion of 100 percent of gain on certain small business stock.
TITLE II—Encouraging cutting-edge research and innovation
Sec. 201. Extension of research credit; alternative simplified research credit increased and made permanent.
Sec. 202. Enhanced research credit for domestic manufacturers.
TITLE III—Providing common-sense tax incentives for veterans
Sec. 301. Veterans franchise fee credit.
Sec. 302. Publication of information by Department of Veterans Affairs and Small Business Administration.
TITLE IV—Regulatory relief for small companies
Sec. 401. Exemption from the internal control reporting and assessment requirements.
TITLE V—Reducing barriers to high-skilled legal immigration
Sec. 501. Numerical limitation to any single foreign state.
TITLE VI—Protecting American business against illegal counterfeiting
Sec. 601. Preventing the importation of counterfeit products and infringing devices.
Extending tax relief for small businesses
Extension of bonus depreciation; temporary 100 percent expensing for certain business assets
In general
Paragraph (2) of section 168(k) of the Internal Revenue Code of 1986 is amended—
by striking
January 1, 2014
in subparagraph (A)(iv) and inserting
January 1, 2016
, and
by striking
January 1, 2013
each place it appears and inserting
January 1, 2015
.
Temporary 100 percent expensing
Paragraph (5) of section 168(k) of the Internal Revenue Code of 1986 is amended—
by striking
2013
and inserting 2016
, and
by striking
2012
each place it appears in the text and heading and inserting
2015
.
Extension of election To accelerate the AMT credit in lieu of bonus depreciation
In general
Subclause (II) of section 168(k)(4)(D)(iii) of the
Internal Revenue Code of 1986 is amended by striking 2013
and
inserting 2015
.
Round 3 extension property
Paragraph (4) of section 168(k) of such Code is amended by adding at the end the following new subparagraph:
Special rules for round 3 extension property
In general
In the case of round 3 extension property, this paragraph shall be applied without regard to—
the limitation described in subparagraph (B)(i) thereof, and
the business credit increase amount under subparagraph (E)(iii) thereof.
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, a taxpayer who made the election under subparagraph (H)(ii) for its first taxable year ending after December 31, 2008, or a taxpayer who made the election under subparagraph (I)(iii) for its first taxable year ending after December 31, 2010—
the taxpayer may elect not to have this paragraph apply to round 3 extension property, but
if the taxpayer does not make the election under subclause (I), in applying this paragraph to the taxpayer the bonus depreciation amount, maximum amount, and maximum increase amount shall be computed and applied to eligible qualified property which is round 3 extension property.
Taxpayers not previously electing acceleration
In the case of a taxpayer who neither made the election under subparagraph (A) for its first taxable year ending after March 31, 2008, nor made the election under subparagraph (H)(ii) for its first taxable year ending after December 31, 2008, nor made the election under subparagraph (I)(iii) for its first taxable year ending after December 31, 2010—
the taxpayer may elect to have this paragraph apply to its first taxable year ending after December 31, 2011, and each subsequent taxable year, and
if the taxpayer makes the election under subclause (I), this paragraph shall only apply to eligible qualified property which is round 3 extension property.
Round 3 extension property
For purposes of this subparagraph, the term round 3 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 101(a) of the American Growth, Recovery, Empowerment, and Entrepreneurship Act (and the application of such extension to this paragraph pursuant to the amendment made by section 101(c)(1) of such Act).
.
Conforming amendments
The heading for
subsection (k) of section 168 of the Internal Revenue Code of 1986 is amended
by striking January 1,
2013
and inserting January 1, 2016
.
The heading for
clause (ii) of section 168(k)(2)(B) of such Code is amended by striking
pre-January 1,
2013
and inserting pre-January 1, 2016
.
Paragraph (5) of section 168(l) of such Code is amended—
by striking
and
at the end of subparagraph (A),
by redesignating subparagraph (C) as subparagraph (B), and
by inserting after subparagraph (A) the following new subparagraph:
by substituting
January 1, 2013
for January 1, 2016
in clause (i)
thereof,
and
.
Subparagraph (C)
of section 168(n)(2) of such Code is amended by striking January 1,
2013
and inserting January 1, 2016
.
Subparagraph (D)
of section 1400L(b)(2) of such Code is amended by striking January 1,
2013
and inserting January 1, 2016
.
Subparagraph (B)
of section 1400N(d)(3) of such Code is amended by striking January 1,
2013
and inserting January 1, 2016
.
Effective date
The amendments made by this section shall apply to property placed in service after December 31, 2011, in taxable years ending after such date.
Extension of increased expensing limitations and treatment of certain real property as section 179 property
In general
Section 179(b) of the Internal Revenue Code of 1986 is amended—
by striking
2010 or 2011
each place it appears in paragraph (1)(B) and
(2)(B) and inserting 2010, 2011, 2012, 2013, or 2014
,
by striking
2012
each place it appears in paragraph (1)(C) and (2)(C) and
inserting 2015
, and
by striking
2012
each place it appears in paragraph (1)(D) and (2)(D) and
inserting 2015
.
Inflation adjustment
Subparagraph (A) of section 179(b)(6) of the Internal
Revenue Code of 1986 is amended by striking 2012
and inserting
2015
.
Computer software
Section 179(d)(1)(A)(ii) of the Internal Revenue Code of
1986 is amended by striking 2013
and inserting
2016
.
Election
Section
179(c)(2) of the Internal Revenue Code of 1986 is amended by striking
2013
and inserting 2016
.
Special rules for treatment of qualified real property
Section 179(f)(1) of the
Internal Revenue Code of 1986 is amended by striking 2010 or
2011
and inserting 2010, 2011, 2012, 2013, or
2014
.
Effective date
The amendments made by this section shall apply to taxable years beginning after December 31, 2011.
Temporary exclusion of 100 percent of gain on certain small business stock
In general
Paragraph (4) of section 1202(a) of the Internal Revenue Code of 1986 is amended—
by striking January 1, 2012
and inserting January 1, 2015
, and
by striking
and
2011
in the heading thereof and inserting
, 2011, 2012, 2013, and
2014
.
Effective date
The amendments made by this section shall apply to stock acquired after December 31, 2011.
Encouraging cutting-edge research and innovation
Extension of research credit; alternative simplified research credit increased and made permanent
Extension of credit
In general
Subparagraph (B) of
section 41(h)(1) of the Internal Revenue Code of 1986 is amended by striking
December 31, 2011
and inserting December 31,
2012
.
Conforming amendment
Subparagraph (D) of
section 45C(b)(1) of such Code is amended by striking December 31,
2011
and inserting December 31, 2012
.
Effective date
The amendments made by this subsection shall apply to amounts paid or incurred after December 31, 2011.
Alternative simplified research credit increased and made permanent
Increased credit
Subparagraph (A) of section 41(c)(5) of the Internal
Revenue Code of 1986 is amended by striking 14 percent (12 percent in
the case of taxable years ending before January 1, 2009)
and inserting
20 percent
.
Credit made permanent
In general
Subsection (h) of section 41 of such Code is amended by redesignating the paragraph (2) relating to computation of taxable year in which credit terminates as paragraph (4) and by inserting before such paragraph the following new paragraph:
Termination not to apply to alternative simplified credit
Paragraph (1) shall not apply to the credit determined under subsection (c)(5).
.
Conforming amendment
Paragraph (4) of section 41(h) of such Code, as redesignated by subparagraph (A), is amended to read as follows:
Computation for taxable year in which credit terminates
In the case of any taxable year with respect to which this section applies to a number of days which is less than the total number of days in such taxable year, the amount determined under subsection (c)(1)(B) with respect to such taxable year shall be the amount which bears the same ratio to such amount (determined without regard to this paragraph) as the number of days in such taxable year to which this section applies bears to the total number of days in such taxable year.
.
Effective date
The amendments made by this subsection shall apply to taxable years ending after December 31, 2010.
Enhanced research credit for domestic manufacturers
In general
Section 41, as amended by section 201, of the Internal Revenue Code of 1986 is amended by redesignating subsection (h) as subsection (i) and by inserting after subsection (f) the following new subsection:
Enhanced credit for domestic manufacturers
In general
In the case of a qualified domestic manufacturer, this section shall be applied by increasing the 20 percent amount in subsection (a)(1) by the bonus amount.
Qualified domestic manufacturer
For purposes of this subsection—
In general
The term qualified domestic manufacturer means a taxpayer who has domestic production gross receipts which are more than 50 percent of total production gross receipts.
Domestic production gross receipts
The term domestic production gross receipts has the meaning given to such term under section 199(c)(4).
Total production gross receipts
The term total production gross receipts means the gross receipts of the taxpayer which are described in section 199(c)(4), determined—
without regard to whether property described in subparagraph (A)(i)(I) or (A)(i)(III) thereof was manufactured, produced, grown, or extracted in the United States,
by substituting
any property described in section 168(f)(3)
for any
qualified film
in subparagraph (A)(i)(II) thereof, and
without regard to whether any construction described in subparagraph (A)(ii) thereof or services described in subparagraph (A)(iii) thereof were performed in the United States.
Bonus amount
For purposes of paragraph (1), the bonus amount shall be determined as follows:
| If the percentage of total production gross receipts which are domestic production gross receipts is: | The bonus amount is: |
| More than 50 percent and not more than 60 percent | 2 percentage points |
| More than 60 percent and not more than 70 percent | 4 percentage points |
| More than 70 percent and not more than 80 percent | 6 percentage points |
| More than 80 percent and not more than 90 percent | 8 percentage points |
| More than 90 percent | 10 percentage points. |
.
Effective date
The amendment made by this section shall apply to expenditures paid or incurred in taxable years beginning after December 31, 2011.
Providing common-sense tax incentives for veterans
Veterans franchise fee credit
In general
Subpart D of part IV of subchapter A of chapter 1 of the Internal Revenue Code of 1986 is amended by adding at the end the following new section:
Veterans franchise fee credit
Veterans franchise fee credit
In general
For purposes of section 38, the veterans franchise fee credit determined under this section for the taxable year is an amount equal to 25 percent of the qualified franchise fees paid or incurred by a veteran during the taxable year.
Limitation
The amount allowed as a credit under paragraph (1) with respect to the purchase of any franchise shall not exceed $100,000.
Reduction where franchise not 100 percent veteran-Owned
In the case of any franchise in which veterans do not own 100 percent of the stock or of the capital or profits interests of the franchise, the credit under subsection (a) shall be the credit amount determined under such subsection, multiplied by the same ratio as—
the stock or capital or profits interests of the franchise held by veterans, bears
to the total stock or capital or profits interests of the franchise.
Qualified franchise fee
For purposes of this section, the term qualified franchise fee means any one-time fee required by the franchisor when entering into a franchise agreement with a veteran as the franchisee.
Other definitions
For purposes of this section, the terms franchise, franchisee, franchisor, and franchise fee have the meanings given such terms in part 436 of title 16, Code of Federal Regulations (as in effect on January 1, 2009).
Veteran
The term veteran has the meaning given such term by section 101 of title 38, United States Code.
Election
This section shall not apply to a taxpayer for any taxable year if such taxpayer elects to have this section not apply for such taxable year.
.
Credit To be part of general business credit
Section 38(b) of the Internal
Revenue Code of 1986 is amended by striking plus
at the end of
paragraph (35), by striking the period at the end of paragraph (36) and
inserting , plus
, and by adding at the end the following new
paragraph:
the veterans franchise fee credit determined under section 45S(a).
.
Clerical amendment
The table of sections for subpart D of part IV of subchapter A of chapter 1 of the Internal Revenue Code of 1986 is amended by adding at the end the following new item:
.
Effective date
The amendments made by this section shall apply to taxable years ending after December 31, 2010.
Publication of information by Department of Veterans Affairs and Small Business Administration
The Administrator of the Small Business Administration and the Secretary of Veterans Affairs shall publicize in mailings and brochures sent to veterans service organizations and veteran advocacy groups information regarding discounted franchise fees under section 45S of the Internal Revenue Code of 1986 and other information about the program established under amendments made by this Act.
Regulatory relief for small companies
Exemption from the internal control reporting and assessment requirements
In general
Section 404 of the Sarbanes-Oxley Act of 2002 (15 U.S.C. 7262) is amended by adding at the end the following:
Exemption
Subsection (b) shall not apply to any issuer until the earlier of—
such time as the issuer has total revenues of $250,000,000; and
the expiration of the 5-year period beginning on the date of the initial public offering of that issuer.
.
Study and report
Study
The Securities and Exchange Commission shall conduct a study—
to determine how the Commission could reduce the burden of complying with section 404(b) of the Sarbanes-Oxley Act of 2002 for companies, the market capitalization of which is between $250,000,000 and $1,000,000,000 for the relevant reporting period while maintaining investor protections for such companies; and
to assess the annual cost of compliance with that section 404(b) for all companies whose market capitalization is less than or equal to $1,000,000,000.
Report
The Securities and Exchange Commission shall submit a report to Congress on the results of the study conducted under paragraph (1) not later than 9 months after the date of enactment of this Act.
Reducing barriers to high-skilled legal immigration
Numerical limitation to any single foreign state
In general
Section 202(a)(2) of the Immigration and Nationality Act (8 U.S.C. 1152(a)(2)) is amended—
in the paragraph
heading, by striking and
employment-based
;
by striking
(3), (4), and (5),
and inserting (3) and
(4),
;
by striking
subsections (a) and (b) of section 203
and inserting
section 203(a)
;
by striking
7
and inserting 15
; and
by striking
such subsections
and inserting such
section
.
Conforming amendments
Section 202 of the Immigration and Nationality Act (8 U.S.C. 1152) is amended—
in subsection
(a)(3), by striking both subsections (a) and (b) of section 203
and inserting section 203(a)
;
by striking subsection (a)(5); and
by amending subsection (e) to read as follows:
Special rules for countries at ceiling
If it is determined that the total number of immigrant visas made available under section 203(a) to natives of any single foreign state or dependent area will exceed the numerical limitation specified in subsection (a)(2) in any fiscal year, in determining the allotment of immigrant visa numbers to natives under section 203(a), visa numbers with respect to natives of that state or area shall be allocated (to the extent practicable and otherwise consistent with this section and section 203) in a manner so that, except as provided in subsection (a)(4), the proportion of the visa numbers made available under each of paragraphs (1) through (4) of section 203(a) is equal to the ratio of the total number of visas made available under the respective paragraph to the total number of visas made available under section 203(a).
.
Country-Specific offset
Section 2 of the Chinese Student Protection Act of 1992 (8 U.S.C. 1255 note) is amended—
in subsection (a),
by striking subsection (e))
and inserting subsection
(d))
; and
by striking subsection (d) and redesignating subsection (e) as subsection (d).
Effective date
The amendments made by this section shall take effect as if enacted on September 30, 2011, and shall apply to fiscal years beginning with fiscal year 2012.
Transition rules for employment-Based immigrants
In general
Subject to the succeeding paragraphs of this subsection and notwithstanding title II of the Immigration and Nationality Act (8 U.S.C. 1151 et seq.), the following rules shall apply:
For fiscal year 2012, 15 percent of the immigrant visas made available under each of paragraphs (2) and (3) of section 203(b) of such Act (8 U.S.C. 1153(b)) shall be allotted to immigrants who are natives of a foreign state or dependent area that was not one of the two states with the largest aggregate numbers of natives obtaining immigrant visas during fiscal year 2010 under such paragraphs.
For fiscal year 2013, 10 percent of the immigrant visas made available under each of such paragraphs shall be allotted to immigrants who are natives of a foreign state or dependent area that was not one of the two states with the largest aggregate numbers of natives obtaining immigrant visas during fiscal year 2011 under such paragraphs.
For fiscal year 2014, 10 percent of the immigrant visas made available under each of such paragraphs shall be allotted to immigrants who are natives of a foreign state or dependent area that was not one of the two states with the largest aggregate numbers of natives obtaining immigrant visas during fiscal year 2012 under such paragraphs.
Per-country levels
Reserved visas
With respect to the visas reserved under each of subparagraphs (A) through (C) of paragraph (1), the number of such visas made available to natives of any single foreign state or dependent area in the appropriate fiscal year may not exceed 25 percent (in the case of a single foreign state) or 2 percent (in the case of a dependent area) of the total number of such visas.
Unreserved visas
With respect to the immigrant visas made available under each of paragraphs (2) and (3) of section 203(b) of such Act (8 U.S.C. 1153(b)) and not reserved under paragraph (1), for each of fiscal years 2012, 2013, and 2014, not more than 85 percent shall be allotted to immigrants who are natives of any single foreign state.
Special rule to prevent unused visas
If, with respect to fiscal year 2012, 2013, or 2014, the operation of paragraphs (1) and (2) of this subsection would prevent the total number of immigrant visas made available under paragraph (2) or (3) of section 203(b) of such Act (8 U.S.C. 1153(b)) from being issued, such visas may be issued during the remainder of such fiscal year without regard to paragraphs (1) and (2) of this subsection.
Rules for chargeability
Section 202(b) of such Act (8 U.S.C. 1152(b)) shall apply in determining the foreign state to which an alien is chargeable for purposes of this subsection.
Protecting American business against illegal counterfeiting
Preventing the importation of counterfeit products and infringing devices
Notwithstanding section 1905 of title 18, United States Code—
if United States Customs and Border
Protection suspects a product of being imported or exported in violation of
section 42 of the Act entitled An Act to provide for the registration
and protection of trademarks used in commerce, to carry out the provisions of
certain international conventions, and for other purposes
, approved
July 5, 1946 (commonly referred to as the Trademark Act of 1946
)
(15 U.S.C. 1124), and subject to any applicable bonding requirements, the
Secretary of Homeland Security is authorized to share information on, and
unredacted samples of, products and their packaging and labels, or photos of
such products, packaging and labels, with the rightholders of the trademark
suspected of being copied or simulated, for purposes of determining whether the
products are prohibited from importation under that section; and
upon seizure of material by United States Customs and Border Protection imported in violation of subsection (a)(2) or subsection (b) of section 1201 of title 17, United States Code, the Secretary of Homeland Security is authorized to share information about, and provide samples to affected parties, subject to any applicable bonding requirements, as to the seizure of material designed to circumvent technological measures or protection afforded by a technological measure that controls access to or protects the owner's work protected by copyright under such title.