S. 1801 (112th): Small Business Jobs Tax Extenders Act of 2011

S 1801 IS

To amend the Internal Revenue Code of 1986 to extend certain provisions of the Creating Small Business Jobs Act of 2010, and for other purposes.

November 3, 2011

Ms. SNOWE introduced the following bill; which was read twice and referred to the Committee on Finance

To amend the Internal Revenue Code of 1986 to extend certain provisions of the Creating Small Business Jobs Act of 2010, 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; ETC.

(a) Short Title- This Act may be cited as the ‘Small Business Jobs Tax Extenders Act of 2011’.

(b) Amendment of 1986 Code- Except as otherwise expressly provided, whenever in this Act an amendment or repeal is expressed in terms of an amendment to, or repeal of, a section or other provision, the reference shall be considered to be made to a section or other provision of the Internal Revenue Code of 1986.

(c) Table of Contents- The table of contents of this Act is as follows:

Sec. 1. Short title; etc.

Sec. 2. Findings.

TITLE I--EXTENSION OF SMALL BUSINESS TAX RELIEF

Sec. 101. Extension of temporary exclusion of 100 percent of gain on certain small business stock.

Sec. 102. Extension of 5-year carryback of general business credits of eligible small businesses.

Sec. 103. Extension of alternative minimum tax rules for general business credits of eligible small businesses.

Sec. 104. Extension of temporary reduction in recognition period for built-in gains tax.

Sec. 105. Extension of increased expensing limitations and treatment of certain real property as section 179 property.

Sec. 106. Extension of bonus depreciation.

Sec. 107. Extension of special rule for long-term contract accounting.

Sec. 108. Extension of increased amount allowed as a deduction for start-up expenditures.

Sec. 109. Extension of allowance of deduction for health insurance in computing self-employment taxes.

TITLE II--OFFSETTING PROVISIONS

Sec. 201. Expansion of affordability exception to individual mandate.

SEC. 2. FINDINGS.

Congress makes the following findings:

(1) A vibrant and growing small business sector is critical to the recovery of the economy of the United States.

(2) Small businesses represent 99.7 percent of all employer firms and generate approximately two-thirds of net new jobs.

(3) Broadening the tax base and lowering statutory rates through comprehensive tax reform is preferable to short term tax rate extensions.

(4) There is no consensus on Congressional passage and implementation of such reform at this time; it is therefore critical that tax relief for small businesses promulgated in the Small Business Jobs Act of 2010 be extended.

TITLE I--EXTENSION OF SMALL BUSINESS TAX RELIEF

SEC. 101. EXTENSION OF TEMPORARY EXCLUSION OF 100 PERCENT OF GAIN ON CERTAIN SMALL BUSINESS STOCK.

(a) In General- Paragraph (4) of section 1202(a) is amended--

(1) by striking ‘January 1, 2012’ and inserting ‘January 1, 2013’, and

(2) by striking ‘AND 2011’ and inserting ‘2011, AND 2012’ in the heading thereof.

(b) Effective Date- The amendments made by this section shall apply to stock acquired after December 31, 2011.

SEC. 102. EXTENSION OF 5-YEAR CARRYBACK OF GENERAL BUSINESS CREDITS OF ELIGIBLE SMALL BUSINESSES.

(a) In General- Subparagraph (A) of section 39(a)(4) is amended by ‘or 2011’ after ‘2010’.

(b) Effective Date- The amendment made by this section shall apply to credits determined in taxable years beginning after December 31, 2010.

SEC. 103. EXTENSION OF ALTERNATIVE MINIMUM TAX RULES FOR GENERAL BUSINESS CREDITS OF ELIGIBLE SMALL BUSINESSES.

(a) In General- Subparagraph (A) of section 38(c)(5) is amended by ‘or 2011’ after ‘2010’.

(b) Effective Date- The amendments made by this section shall apply to credits determined in taxable years beginning after December 31, 2010, and to carrybacks of such credits.

SEC. 104. EXTENSION OF TEMPORARY REDUCTION IN RECOGNITION PERIOD FOR BUILT-IN GAINS TAX.

(a) In General- Clause (ii) of section 1374(d)(7)(B) is amended by inserting ‘or 2012,’ after ‘2011’.

(b) Conforming Amendment- The heading for section 1372(d)(7)(B) is amended by striking ‘AND 2011’ and inserting ‘2011, AND 2012’.

(c) Effective Date- The amendments made by this section shall apply to taxable years beginning after December 31, 2011.

SEC. 105. EXTENSION OF INCREASED EXPENSING LIMITATIONS AND TREATMENT OF CERTAIN REAL PROPERTY AS SECTION 179 PROPERTY.

(a) In General- Section 179(b) is amended--

(1) by striking ‘2010 or 2011’ each place it appears in paragraph (1)(B) and (2)(B) and inserting ‘2010, 2011, or 2012’,

(2) by striking ‘2012’ each place it appears in paragraph (1)(C) and (2)(C) and inserting ‘2013’, and

(3) by striking ‘2012’ each place it appears in paragraph (1)(D) and (2)(D) and inserting ‘2013’.

(b) Inflation Adjustment- Subparagraph (A) of section 179(b)(6) is amended by striking ‘2012’ and inserting ‘2013’.

(c) Computer Software- Section 179(d)(2)(A)(ii) is amended by striking ‘2013’ and inserting ‘2014’.

(d) Election- Section 179(c)(2) is amended by striking ‘2013’ and inserting ‘2014’.

(e) Special Rules for Treatment of Qualified Real Property- Section 179(f)(1) is amended by striking ‘2010 or 2011’ and inserting ‘2010, 2011, or 2012’.

(f) Effective Date- The amendments made by this section shall apply to taxable years beginning after December 31, 2011.

SEC. 106. EXTENSION OF BONUS DEPRECIATION.

(a) In General- Paragraph (2) of section 168(k) is amended--

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

(2) by striking ‘January 1, 2013’ each place it appears and inserting ‘January 1, 2014’.

(b) 100 Percent Expensing- Paragraph (5) of section 168(k) is amended--

(1) by striking ‘January 1, 2013’ and inserting ‘January 1, 2014’, and

(2) by striking ‘January 1, 2012’ each place it appears and inserting ‘January 1, 2013’.

(c) Extension of Election To Accelerate the AMT Credit in Lieu of Bonus Depreciation-

(1) IN GENERAL- Subclause (II) of section 168(k)(4)(D)(iii) is amended by striking ‘2013’ and inserting ‘2014’.

(2) ROUND 3 EXTENSION PROPERTY- Paragraph (4) of section 168(k) is amended by adding at the end the following new subparagraph:

‘(J) SPECIAL RULES FOR ROUND 3 EXTENSION PROPERTY-

‘(i) IN GENERAL- In the case of round 3 extension property, this paragraph shall be applied without regard to--

‘(I) the limitation described in subparagraph (B)(i) thereof, and

‘(II) the business credit increase amount under subparagraph (E)(iii) thereof.

‘(ii) 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--

‘(I) the taxpayer may elect not to have this paragraph apply to round 3 extension property, but

‘(II) 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.

The amounts described in subclause (II) shall be computed separately from any amounts computed with respect to eligible qualified property which is not round 2 extension property.

‘(iii) 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--

‘(I) 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

‘(II) if the taxpayer makes the election under subclause (I), this paragraph shall only apply to eligible qualified property which is round 3 extension property.

‘(iv) 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 7(a) of the Small Business Jobs Tax Extenders Act of 2011 (and the application of such extension to this paragraph pursuant to the amendment made by section 7(c)(1) of such Act).’.

(d) Conforming Amendments-

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

(2) The heading for clause (ii) of section 168(k)(2)(B) is amended by striking ‘PRE-JANUARY 1, 2013’ and inserting ‘PRE-JANUARY 1, 2014’.

(3) Paragraph (5) of section 168(l) is amended--

(A) by striking ‘and’ at the end of subparagraph (A),

(B) by redesignating subparagraph (C) as subparagraph (B), and

(C) by inserting after subparagraph (A) the following new subparagraph:

‘(B) by substituting ‘January 1, 2013’ for ‘January 1, 2014’ in clause (i) thereof, and’.

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

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

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

(e) Effective Dates- The amendments made by this section shall apply to property placed in service after December 31, 2011, in taxable years ending after such date.

SEC. 107. EXTENSION OF SPECIAL RULE FOR LONG-TERM CONTRACT ACCOUNTING.

(a) In General- Clause (ii) of section 460(c)(6)(B) is amended by striking ‘January 1, 2011 (January 1, 2012’ and inserting ‘January 1, 2012 (January 1, 2013’.

(b) Effective Date- The amendment made by this section shall apply to property placed in service after December 31, 2010.

SEC. 108. EXTENSION OF INCREASED AMOUNT ALLOWED AS A DEDUCTION FOR START-UP EXPENDITURES.

(a) In General- Paragraph (3) of section 195(b) is amended--

(1) by inserting ‘or 2011’ after ‘2010’, and

(2) by inserting ‘AND 2011’ in the heading thereof.

(b) Effective Date- The amendments made by this section shall apply to amounts paid or incurred in taxable years beginning after December 31, 2010.

SEC. 109. EXTENSION OF ALLOWANCE OF DEDUCTION FOR HEALTH INSURANCE IN COMPUTING SELF-EMPLOYMENT TAXES.

(a) In General- Paragraph (4) of section 162(l) is amended by striking ‘December 31, 2010’ and inserting ‘December 31, 2011’.

(b) Effective Date- The amendment made by this section shall apply to taxable years beginning after December 31, 2010.

TITLE II--OFFSETTING PROVISIONS

SEC. 201. EXPANSION OF AFFORDABILITY EXCEPTION TO INDIVIDUAL MANDATE.

Section 5000A(e)(1) is amended by striking ‘8 percent’ each place it appears and inserting ‘5 percent’.

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