H.R. 3571 (112th): Entrepreneur Startup Growth Act of 2011

HR 3571 IH

To direct the Commissioner of Internal Revenue to establish a self-employment tax initiative grant program, and for other purposes.

December 6, 2011

Ms. CHU introduced the following bill; which was referred to the Committee on Ways and Means, and in addition to the Committee on 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

To direct the Commissioner of Internal Revenue to establish a self-employment tax initiative grant program, and for other purposes.

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 ‘Entrepreneur Startup Growth Act of 2011’.

SEC. 2. SELF-EMPLOYMENT TAX INITIATIVE GRANT PROGRAM.

(a) Establishment- Not later than 90 days after the date of enactment of this Act, the Commissioner of Internal Revenue, in consultation with the Administrator of the Small Business Administration, shall establish a self-employment tax initiative grant program (in this section referred to as the ‘program’) to provide to covered individuals affordable tax preparation and business development assistance.

(b) Grant Authority and Eligible Entities- Under the program, the Commissioner may make a grant to the following:

(1) A community-based organization.

(2) A microlender.

(3) A nonprofit organization.

(4) An institution of higher education.

(5) A local government.

(6) A consortium of entities described in any of paragraphs (1) through (5).

(c) Grant Uses- A grant made under the program shall be used for the following:

(1) Providing affordable tax preparation assistance to a covered individual.

(2) Providing business development assistance to a covered individual, including individual counseling, classroom training, or other activities designed to assist a covered individual to improve the profitability, efficiency, or readiness for financing of the individual’s business.

(3) Conducting culturally and linguistically appropriate outreach to underserved communities in the area in which assistance described in paragraph (1) or (2) is provided.

(d) Applications for Grants- To be eligible for a grant under the program an entity specified in subsection (b) shall submit to the Commissioner an application at such time, in such form, and containing such information as the Commissioner may require, but which, at a minimum, shall--

(1) include the plan of the entity to provide assistance and outreach described in subsection (c) throughout each year; and

(2) demonstrate that the entity has experience providing the assistance described in paragraph (1) and the assistance described in paragraph (2) of subsection (c).

(e) Grant Amount- A grant made under the program may not be in an amount that exceeds $75,000.

(f) GAO Study and Report-

(1) STUDY- The Comptroller General of the United States shall conduct a study on the program, including program outcomes.

(2) REPORT- Not later than 3 years after the date on which the program is established, the Comptroller General shall submit to Congress a report on the results of the study conducted under paragraph (1), which shall include the following:

(A) An analysis of the impact of the program on covered individuals and the businesses of such individuals.

(B) An identification of the best practices of grant recipients with respect to activities carried out with grant funds.

(C) Recommendations for improving the program.

(g) Authorization of Appropriations-

(1) IN GENERAL- There is authorized to be appropriated to carry out the program $1,500,000 for each of fiscal years 2012 through 2016.

(2) ADMINISTRATIVE COSTS- Of the funds made available to carry out the program each fiscal year, the Commissioner may use not more than 10 percent for the administrative costs of the program.

(h) Definitions- In this section, the following definitions apply:

(1) COVERED INDIVIDUAL- The term ‘covered individual’ means, with respect to any taxable year, an individual who--

(A) is engaged in an active trade or business as a sole proprietor during such taxable year;

(B) is required to report income or loss on Schedule C to Form 1040 for such taxable year; and

(C) has modified adjusted gross income of $50,000 or less for the preceding taxable year.

(2) INSTITUTION OF HIGHER EDUCATION- The term ‘institution of higher education’ has the meaning given that term in section 102 of the Higher Education Act of 1965 (20 U.S.C. 1002).

(3) MICROLENDER- The term ‘microlender’ means a private organization that provides--

(A) loans of $50,000 or less to entrepreneurs, small business owners, and nonprofit child care providers; and

(B) marketing, management, and technical assistance to loan recipients and potential loan recipients.

(4) MODIFIED ADJUSTED GROSS INCOME- The term ‘modified adjusted gross income’ means the adjusted gross income (as defined in section 62 of the Internal Revenue Code of 1986) of the taxpayer for a taxable year increased by any amount excluded from gross income under section 911, 931, or 933 of such Code.

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