H.R. 976 (110th): Children’s Health Insurance Program Reauthorization Act of 2007

110th Congress, 2007–2009. Text as of Feb 09, 2007 (Introduced).

Status & Summary | PDF | Source: GPO

I

110th CONGRESS

1st Session

H. R. 976

IN THE HOUSE OF REPRESENTATIVES

February 9, 2007

(for himself and Mr. McCrery) 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 tax relief for small businesses, and for other purposes.

1.

Short title; amendment of 1986 Code; table of contents

(a)

Short title

This Act may be cited as the Small Business Tax Relief Act of 2007.

(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; amendment of 1986 Code; table of contents.

Sec. 2. Extension and modification of work opportunity tax credit.

Sec. 3. Extension and increase of expensing for small business.

Sec. 4. Determination of credit for certain taxes paid with respect to employee cash tips.

Sec. 5. Waiver of individual and corporate alternative minimum tax limits on work opportunity credit and credit for taxes paid with respect to employee cash tips.

Sec. 6. Family business tax simplification.

Sec. 7. Denial of lowest capital gains rate for certain dependents.

Sec. 8. Suspension of certain penalties and interest.

Sec. 9. Time for payment of corporate estimated taxes.

2.

Extension and modification of work opportunity tax credit

(a)

Extension

Section 51(c)(4)(B) (relating to termination) is amended by striking 2007 and inserting 2008.

(b)

Increase in maximum age for designated community residents

(1)

In general

Paragraph (5) of section 51(d) is amended to read as follows:

(5)

Designated community residents

(A)

In general

The term designated community resident means any individual who is certified by the designated local agency—

(i)

as having attained age 18 but not age 40 on the hiring date, and

(ii)

as having his principal place of abode within an empowerment zone, enterprise community, or renewal community.

(B)

Individual must continue to reside in zone or community

In the case of a designated community resident, the term qualified wages shall not include wages paid or incurred for services performed while the individual’s principal place of abode is outside an empowerment zone, enterprise community, or renewal community.

.

(2)

Conforming amendment

Subparagraph (D) of section 51(d)(1) is amended to read as follows:

(D)

a designated community resident,

.

(c)

Clarification of treatment of individuals under individual work plans

Subparagraph (B) of section 51(d)(6) (relating to vocational rehabilitation referral) is amended by striking or at the end of clause (i), by striking the period at the end of clause (ii) and inserting , or, and by adding at the end the following new clause:

(iii)

an individual work plan developed and implemented by an employment network pursuant to subsection (g) of section 1148 of the Social Security Act with respect to which the requirements of such subsection are met.

.

(d)

Treatment of disabled veterans under the work opportunity tax credit

(1)

Disabled veterans treated as members of targeted group

(A)

In general

Subparagraph (A) of section 51(d)(3) (relating to qualified veteran) is amended by striking agency as being a member of a family and all that follows and inserting

agency as—

(i)

being a member of a family receiving assistance under a food stamp program under the Food Stamp Act of 1977 for at least a 3-month period ending during the 12-month period ending on the hiring date, or

(ii)

entitled to compensation for a service-connected disability, and—

(I)

having a hiring date which is not more that 1 year after having been discharged or released from active duty in the Armed Forces of the United States, or

(II)

having aggregate periods of unemployment during the 1-year period ending on the hiring date which equal or exceed 6 months.

.

(B)

Definitions

Paragraph (3) of section 51(d) is amended by adding at the end the following new subparagraph:

(C)

Other definitions

For purposes of subparagraph (A), the terms compensation and service-connected have the meanings given such terms under section 101 of title 38, United States Code.

.

(2)

Increase in amount of wages taken into account for disabled veterans

Paragraph (3) of section 51(b) is amended—

(A)

by inserting ($12,000 per year in the case of any individual who is a qualified veteran by reason of subsection (d)(3)(A)(ii)) before the period at the end, and

(B)

by striking Only first $6,000 of in the heading and inserting Limitation on.

(e)

Effective date

The amendments made by this section shall apply to individuals who begin work for the employer after the date of the enactment of this Act.

3.

Extension and increase of expensing for small business

(a)

Extension

Subsections (b)(1), (b)(2), (b)(5), (c)(2), and (d)(1)(A)(ii) of section 179 (relating to election to expense certain depreciable business assets) are each amended by striking 2010 and inserting 2011.

(b)

Increase in limitations

Subsection (b) of section 179 is amended—

(1)

by striking $100,000 in the case of taxable years beginning after 2002 in paragraph (1) and inserting $125,000 in the case of taxable years beginning after 2006, and

(2)

by striking $400,000 in the case of taxable years beginning after 2002 in paragraph (2) and inserting $500,000 in the case of taxable years beginning after 2006.

(c)

Inflation adjustment

Subparagraph (A) of section 179(b)(5) is amended—

(1)

by striking 2003 and inserting 2007,

(2)

by striking $100,000 and $400,000 and inserting $125,000 and $500,000, and

(3)

by striking 2002 in clause (ii) and inserting 2006.

(d)

Effective date

The amendments made by this section shall apply to taxable years beginning after December 31, 2006.

4.

Determination of credit for certain taxes paid with respect to employee cash tips

(a)

In general

Subparagraph (B) of section 45B(b)(1) is amended by inserting as in effect on January 1, 2007, and before determined without regard to.

(b)

Effective date

The amendment made by this section shall apply to tips received for services performed after December 31, 2006.

5.

Waiver of individual and corporate alternative minimum tax limits on work opportunity credit and credit for taxes paid with respect to employee cash tips

(a)

Allowance against alternative minimum tax

Subparagraph (B) of section 38(c)(4) is amended by striking and at the end of clause (i), by striking the period at the end of clause (ii) and inserting a comma, and by adding at the end the following new clauses:

(iii)

the credit determined under section 45B, and

(iv)

the credit determined under section 51.

.

(b)

Effective date

The amendments made by this section shall apply to credits determined under sections 45B and 51 of the Internal Revenue Code of 1986 in taxable years beginning after December 31, 2006, and to carrybacks of such credits.

6.

Family business tax simplification

(a)

In general

Section 761 (defining terms for purposes of partnerships) is amended by redesignating subsection (f) as subsection (g) and by inserting after subsection (e) the following new subsection:

(f)

Qualified joint venture

(1)

In general

In the case of a qualified joint venture conducted by a husband and wife who file a joint return for the taxable year, for purposes of this title—

(A)

such joint venture shall not be treated as a partnership,

(B)

all items of income, gain, loss, deduction, and credit shall be divided between the spouses in accordance with their respective interests in the venture, and

(C)

each spouse shall take into account such spouse’s respective share of such items as if they were attributable to a trade or business conducted by such spouse as a sole proprietor.

(2)

Qualified joint venture

For purposes of paragraph (1), the term qualified joint venture means any joint venture involving the conduct of a trade or business if—

(A)

the only members of such joint venture are a husband and wife,

(B)

both spouses materially participate (within the meaning of section 469(h) without regard to paragraph (5) thereof) in such trade or business, and

(C)

both spouses elect the application of this subsection.

.

(b)

Net earnings from self-employment

(1)

Subsection (a) of section 1402 (defining net earnings from self-employment) is amended by striking , and at the end of paragraph (15) and inserting a semicolon, by striking the period at the end of paragraph (16) and inserting ; and, and by inserting after paragraph (16) the following new paragraph:

(17)

notwithstanding the preceding provisions of this subsection, each spouse’s share of income or loss from a qualified joint venture shall be taken into account as provided in section 761(f) in determining net earnings from self-employment of such spouse.

.

(2)

Subsection (a) of section 211 of the Social Security Act (defining net earnings from self-employment) is amended by striking and at the end of paragraph (14), by striking the period at the end of paragraph (15) and inserting ; and, and by inserting after paragraph (16) the following new paragraph:

(16)

Notwithstanding the preceding provisions of this subsection, each spouse’s share of income or loss from a qualified joint venture shall be taken into account as provided in section 761(f) of the Internal Revenue Code of 1986 in determining net earnings from self-employment of such spouse.

.

(c)

Effective date

The amendments made by this section shall apply to taxable years beginning after December 31, 2006.

7.

Denial of lowest capital gains rate for certain dependents

(a)

In general

Subsection (h) of section 1 is amended by adding at the end the following new paragraph:

(12)

Certain individuals not eligible for lowest rate

(A)

In general

In the case of an individual described in subparagraph (B)—

(i)

the amount determined under paragraph (1)(A)(ii)(II) shall not be less than the amount of taxable income which would (without regard to this subsection) be taxed at a rate below 15 percent, and

(ii)

the sum of the amounts determined under subparagraphs (B) and (C) of paragraph (1) shall be an amount equal to the rate of tax specified in paragraph (1)(C) multiplied by so much of the adjusted net capital gain (or, if less, taxable income) as exceeds the excess (if any) of—

(I)

the amount of taxable income which would (without regard to this subsection) be taxed at a rate below 15 percent, over

(II)

the taxable income reduced by the adjusted net capital gain.

(B)

Individuals to whom paragraph applies

(i)

In general

For purposes of this paragraph, an individual is described in this subparagraph if—

(I)

such individual meets the age requirements of section 152(c)(3) (determined without regard to subparagraph (B) thereof), and

(II)

such individual’s earned income (as defined in section 911(d)(2)) for the taxable year does not exceed one-half of such individual’s support (within the meaning of section 152) for such taxable year.

(ii)

Special rules for joint returns

In the case of a joint return—

(I)

the taxpayer and the taxpayer’s spouse shall be treated as a single individual for purposes of applying subclause (II) of clause (i), and

(II)

the taxpayer shall be treated as an individual described in this subparagraph only if the taxpayer and the taxpayer’s spouse are described in clause (i) (determined after application of subclause (I)).

.

(b)

Alternative minimum tax

Section 55(b)(3) of such Code is amended by inserting before the last sentence the following flush sentence: In the case of an individual described in section 1(h)(12)(B), no amount shall be determined under subparagraph (B)..

(c)

Effective date

The amendments made by this section shall apply to taxable years beginning after December 31, 2006.

8.

Suspension of certain penalties and interest

(a)

In general

Paragraphs (1)(A) and (3)(A) of section 6404(g) are each amended by striking 18-month period and inserting 22-month period.

(b)

Effective date

The amendments made by this section shall apply to notices provided by the Secretary of the Treasury after the date which is 6 months after the date of the enactment of this Act.

9.

Time for payment of corporate estimated taxes

Subparagraph (B) of section 401(1) of the Tax Increase Prevention and Reconciliation Act of 2005 is amended by striking 106.25 percent and inserting 112.75 percent.