H.R. 660 – Jumpstarting Our Business Sector Act of 2011

112th CONGRESS

1st Session

H. R. 660

IN THE HOUSE OF REPRESENTATIVES

February 11, 2011

Mr. Broun of Georgia (for himself, Mrs. Schmidt, Mr. Franks of Arizona, Mr. Fleming, Mr. Lamborn, Mr. Gohmert, and Mr. Marchant) 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 provide individual and corporate income tax relief and to extend 100 percent bonus depreciation, and for other purposes.

Short title

This Act may be cited as the Jumpstarting Our Business Sector Act of 2011.

Reduction in corporate income tax rates

(a)

In general

Subsection (b) of section 11 of the Internal Revenue Code of 1986 is amended to read as follows:

(b)

Amount of tax

The amount of the tax imposed by subsection (a) shall be 0 percent of taxable income.

(b)

Conforming amendments

(1)

Section 55(b)(1)(B)(i) of such Code is amended by striking 20 percent and inserting 0 percent.

(2)

Section 280C(c)(3)(B)(ii)(II) of such Code is amended by striking maximum rate of tax under section 11(b)(1) and inserting rate of tax under section 11(b).

(3)

Sections 860E(e)(2)(B), 860E(e)(6)(A)(ii), 860K(d)(2)(A)(ii), 860K(e)(1)(B)(ii), 1446(b)(2)(B), and 7874(e)(1)(B) of such Code are each amended by striking highest rate of tax specified in section 11(b)(1) and inserting rate of tax specified in section 11(b).

(4)

Section 904(b)(3)(D)(ii) of such Code is amended by striking (determined without regard to the last sentence of section 11(b)(1)).

(5)

Section 962 of such Code is amended by striking subsection (c) and by redesignating subsection (d) as subsection (c).

(6)

Section 1201(a) of such Code is amended—

(A)

by striking 35 percent (determined without regard to the last 2 sentences of section 11(b)(1)) and inserting 0 percent, and

(B)

by striking 35 percent in paragraph (2) and inserting 0 percent.

(7)

Section 1561(a) of such Code is amended—

(A)

by striking paragraph (1) and by redesignating paragraphs (2), (3), and (4) as paragraphs (1), (2), and (3), respectively,

(B)

by striking The amounts specified in paragraph (1), the and inserting The,

(C)

by striking paragraph (2) and inserting paragraph (1),

(D)

by striking paragraph (3) both places it appears and inserting paragraph (2),

(E)

by striking paragraph (4) and inserting paragraph (3), and

(F)

by striking the fourth sentence.

(8)

Subsection (b) of section 1561 of such Code is amended to read as follows:

(b)

Certain short taxable years

If a corporation has a short taxable year which does not include a December 31 and is a component member of a controlled group of corporations with respect to such taxable year, then for purposes of this subtitle, the amount to be used in computing the accumulated earnings credit under section 535(c) (2) and (3) of such corporation for such taxable year shall be the amount specified in subsection (a)(1) divided by the number of corporations which are component members of such group on the last day of such taxable year. For purposes of the preceding sentence, section 1563(b) shall be applied as if such last day were substituted for December 31.

(c)

Effective date

The amendments made by this section shall apply to taxable years beginning after December 31, 2011.

Zero percent capital gains rate for individuals and corporations

(a)

Zero percent capital gains rate for individuals

(1)

In general

Paragraph (1) of section 1(h) of the Internal Revenue Code of 1986 is amended by striking subparagraph (C), by redesignating subparagraphs (D) and (E) and subparagraphs (C) and (D), respectively, and by amending subparagraph (B) to read as follows:

(B)

0 percent of the adjusted net capital gain (or, if less, taxable income);

(2)

Alternative minimum tax

Paragraph (3) of section 55(b) is amended by striking subparagraph (C), by redesignating subparagraph (D) as subparagraph (C), and by amending subparagraph (B) to read as follows:

(B)

0 percent of the adjusted net capital gain (or, if less, taxable excess), plus

(3)

Repeal of sunset of reduction in capital gains rates for individuals

Section 303 of the Jobs and Growth Tax Relief Reconciliation Act of 2003 shall not apply to section 301 of such Act.

(b)

Zero percent capital gains rate for corporations

(1)

In general

Section 1201 of the Internal Revenue Code of 1986 is amended by redesignating subsection (b) as subsection (c), and by striking subsection (a) and inserting the following new subsections:

(a)

General rule

If for any taxable year a corporation has a net capital gain, then, in lieu of the tax imposed by sections 11, 511, 821(a) or (c), and 831(a), there is hereby imposed a tax (if such tax is less than the tax imposed by such sections) which shall consist of the sum of—

(1)

a tax computed on the taxable income reduced by the amount of the net capital gain, at the rates and in the manner as if this subsection had not been enacted,

(2)

0 percent of the adjusted net capital gain (or, if less, taxable income),

(3)

25 percent of the excess (if any) of—

(A)

the unrecaptured section 1250 gain (or, if less, the net capital gain (determined without regard to subsection (b)(2)), over

(B)

the excess (if any) of—

(i)

the sum of the amount on which tax is determined under paragraph (1) plus the net capital gain, over

(ii)

taxable income, plus

(4)

28 percent of the amount of taxable income in excess of the sum of the amounts on which tax is determined under the preceding paragraphs of this subsection.

(b)

Definitions and special rules

For purposes of this section—

(1)

In general

The terms adjusted net capital gain and unrecaptured section 1250 gain shall have the respective meanings given such terms in section 1(h).

(2)

Dividends taxed at net capital gain

Except as otherwise provided in this section, the term net capital gain has the meaning given such term in section 1(h)(11).

(2)

Alternative minimum tax

Section 55(b) of such Code is amended by adding at the end the following new paragraph:

(4)

Maximum rate of tax on net capital gain of corporations

The amount determined under paragraph (1)(B)(i) shall not exceed the sum of—

(A)

the amount determined under such paragraph computed at the rates and in the same manner as if this paragraph had not been enacted on the taxable excess reduced by the net capital gain, plus

(B)

the amount determined under section 1201.

(3)

Technical amendments

(A)

Section 1445(e)(1) of such Code is amended by striking 35 percent (or, to the extent provided in regulations, 15 percent) and inserting 0 percent.

(B)

Section 1445(e)(2) of such Code is amended by striking 35 percent and inserting 0 percent.

(C)

Section 7518(g)(6)(A) of such Code is amended by striking 15 percent (34 percent in the case of a corporation) and inserting 0 percent .

(D)

Section 607(h)(6)(A) of the Merchant Marine Act, 1936 is amended by striking 15 percent (34 percent in the case of a corporation) and inserting 0 percent.

(c)

Effective date

(1)

In general

Except as provided in paragraph (2), the amendments made by this section shall apply to taxable years ending after the date of the enactment of this Act.

(2)

Withholding

The amendments made by subparagraphs (A) and (B) of subsection (b)(3) shall apply to dispositions and distributions after the date of the enactment of this Act.

One-year extension of bonus depreciation and 100 percent expensing for certain business assets

(a)

In general

(1)

Bonus depreciation

Paragraph (2) of section 168(k) of the Internal Revenue Code of 1986 is amended—

(A)

by striking January 1, 2014 in subparagraph (A)(iv) and inserting January 1, 2015, and

(B)

by striking January 1, 2013 each place it appears and inserting January 1, 2014.

(2)

100 percent expensing

Paragraph (5) of section 168(k) is amended to read as follows:

(5)

Temporary 100 percent bonus depreciation

Paragraph (1)(A) shall be applied by substituting 100 percent for 50 percent in the case of property placed in service by the taxpayer after September 8, 2010, which would be qualified property if—

(A)

January 1, 2013 were substituted for January 1, 2014 each place it appears in paragraph (2),

(B)

January 1, 2014 were substituted for January 1, 2015 in clause (iv) of paragraph (2)(A), and

(C)

September 8, 2010 were substituted for December 31, 2007 each place it appears in paragraph (2).

(3)

Special rules relating to election to accelerate AMT credit in lieu of bonus depreciation

(A)

Subclause (II) of section 168(k)(4)(D)(iii) of such Code is amended by striking January 1, 2013 and inserting January 1, 2014.

(B)

Clause (iv) of section 168(k)(4)(I) of such Code is amended—

(i)

by inserting after Act of 2010, and

(ii)

by striking of such Act and inserting or section 2(a)(3)(A) of either such Act, respectively.

(4)

Conforming amendments

(A)

The heading for subsection (k) of section 168 of such Code is amended by striking January 1, 2013 and inserting January 1, 2014.

(B)

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, 2014.

(C)

Subparagraph (C) of section 168(n)(2) of such Code is amended by striking January 1, 2013 and inserting January 1, 2014.

(D)

Subparagraph (D) of section 1400L(b)(2) of such Code is amended by striking January 1, 2013 and inserting January 1, 2014.

(E)

Subparagraph (B) of section 1400N(d)(3) of such Code is amended by striking January 1, 2013 and inserting January 1, 2014.

(b)

Effective date

The amendments made by this section shall apply to property placed in service after December 31, 2011.

Jumpstarting Our Business Sector Act of 2011

Legislative Activity

Floor Debate

Bill Text