< Back to H.R. 4637 (111th Congress, 2009–2010)

Text of the Help Small Businesses Start and Grow Act of 2010

This bill was introduced on February 22, 2010, in a previous session of Congress, but was not enacted. The text of the bill below is as of Feb 22, 2010 (Introduced).

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Source: GPO

I

111th CONGRESS

2d Session

H. R. 4637

IN THE HOUSE OF REPRESENTATIVES

February 22, 2010

introduced the following bill; which was referred to the Committee on Ways and Means, and in addition to the Committee on Small Business, 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 amend the Internal Revenue Code of 1986 to increase the amount allowed as a deduction for start-up expenditures, to provide a standard home office deduction, to increase the amount allowed as a deduction for meals and entertainment expenses of small businesses, and to extend bonus depreciation, and for other purposes.

1.

Short title; table of contents

(a)

Short title

This Act may be cited as the Help Small Businesses Start and Grow Act of 2010.

(b)

Table of contents

The table of contents for this Act is as follows:

Sec. 1. Short title; table of contents.

Title I—Tax Relief

Sec. 101. Increase in amount allowed as deduction for start-up expenditures.

Sec. 102. Standard deduction for business use of home.

Sec. 103. Increased meals and entertainment expense deduction for small businesses.

Sec. 104. Two-year extension of bonus depreciation.

Title II—Small Business Loans

Sec. 202. Small business direct lending program.

I

Tax Relief

101.

Increase in amount allowed as deduction for start-up expenditures

(a)

In general

Subsection (b) of section 195 of the Internal Revenue Code of 1986 is amended by adding at the end the following:

(3)

Special rule for taxable years beginning in 2009, 2010, or 2011

In the case of a taxable year beginning in 2009, 2010, or 2011, paragraph (1)(A)(ii) shall be applied—

(A)

by substituting $50,000 for $5,000, and

(B)

by substituting $75,000 for $50,000.

.

(b)

Effective date

The amendments made by this section shall apply to amounts paid or incurred in taxable years beginning after the date of the enactment of this Act.

102.

Standard deduction for business use of home

(a)

In General

Subsection (c) of section 280A of the Internal Revenue Code of 1986 (relating to disallowance of certain expenses in connection with business use of home, rental of vacation homes, etc.) is amended by adding at the end the following new paragraph:

(7)

Standard home office deduction

(A)

In general

In the case of an individual that is allowed a deduction for the use of a home office because of a use described in paragraphs (1), (2), or (4) of this subsection, notwithstanding the limitations of paragraph (5), if such individual elects the application of this paragraph for the taxable year, such individual shall be allowed a deduction equal to the standard home office deduction for the taxable year in lieu of the deductions otherwise allowable under this chapter for such taxable year by reason of being attributed to such use.

(B)

Standard home office deduction amount

For purposes of this paragraph, the standard home office deduction is the lesser of—

(i)

$2,500, or

(ii)

the gross income derived from the individual’s trade or business for which such use occurs.

(C)

Inflation adjustment

In the case of any taxable year beginning in a calendar year after 2010, the dollar amount in subparagraph (B)(i) shall be increased by an amount equal to—

(i)

such dollar amount, multiplied by

(ii)

the cost-of-living adjustment determined under section 1(f)(3) for the calendar year in which the taxable year begins, determined by substituting 2009 for 1992 in subparagraph (B) thereof.

Any increase determined under the preceding sentence shall be rounded to the nearest multiple of $100.

.

(b)

Effective Date

The amendment made by this section shall apply to taxable years beginning after the date of the enactment of this Act.

103.

Increased meals and entertainment expense deduction for small businesses

(a)

In general

Subsection (n) of section 274 of the Internal Revenue Code of 1986 is amended by adding at the end the following new paragraph:

(4)

Increased percentage for small business expenses

(A)

In general

In the case of expenses or items described in paragraph (1) paid or incurred by the taxpayer in carrying on an eligible trade or business, such paragraph shall be applied by substituting 80 percent for 50 percent.

(B)

Eligible trade or business

(i)

In general

For purposes of subparagraph (A), the term eligible trade or business means, with respect to any taxable year, a trade or business (whether or not incorporated) which employed an average of less than 50 employees on business days during the taxable year.

(ii)

Controlled groups

For purposes of clause (i), all persons treated as a single employer under subsection (b), (c), (m), or (o) of section 414 shall be treated as a single employer.

.

(b)

Effective date

The amendment made by this section shall apply to expenses paid or incurred after the date of the enactment of this Act.

104.

Two-year extension of bonus depreciation

(a)

In general

Paragraph (2) of section 168(k) is amended—

(1)

by striking January 1, 2011 and inserting January 1, 2014, and

(2)

by striking January 1, 2010 each place it appears and inserting January 1, 2013.

(b)

Conforming amendments

(1)

The heading for subsection (k) of section 168 of such Code is amended by striking January 1, 2010 and inserting January 1, 2013.

(2)

The heading for clause (ii) of section 168(k)(2)(B) of such Code is amended by striking pre-January 1, 2010 and inserting pre-January 1, 2013.

(3)

Paragraph (5) of section 168(l) is amended by striking subparagraph (B), by adding and at the end of subparagraph (A), and by redesignating subparagraph (C) as subparagraph (B).

(4)

Subparagraph (C) of section 168(n)(2) of such Code is amended by striking clause (ii), by adding and at the end of clause (i), and by redesignating clause (iii) as clause (ii).

(5)

Subparagraph (B) of section 1400N(d)(3) of such Code is amended by striking January 1, 2010 and inserting January 1, 2013.

(c)

Effective date

The amendments made by this section shall apply to property placed in service after December 31, 2009.

II

Small Business Loans

202.

Small business direct lending program

(a)

Establishment

The Administrator of the Small Business Administration shall establish and carry out a program under which the Administrator is authorized to make loans directly to eligible small business concerns (in this section referred to as the program).

(b)

Administration

Except as otherwise provided under this section and to the extent practicable, the Administrator of the Small Business Administration shall carry out the program—

(1)

using the administrative resources of the Small Business Administration; and

(2)

in a manner similar to the loan program under section 7(a) of the Small Business Act (15 U.S.C. 636(a)).

(c)

Use of loan funds

Amounts from a loan made under the program may be used by a small business concern for the operation or expansion of such concern or for any other purpose allowed under section 7(a) of the Small Business Act (15 U.S.C. 636(a)).

(d)

Loan amount

The maximum amount of a loan made under the program shall be $1,500,000.

(e)

Loan term

The maximum term for repayment of a loan made under the program shall be 25 years.

(f)

Loan interest rate

The interest rate with respect to a loan made under the program shall be the prime rate (as determined by the Administrator of the Small Business Administration).

(g)

Accountability

(1)

SBA reports

Not later than 30 days after the date of enactment of this Act and every month thereafter, the Administrator of the Small Business Administration shall submit to the Committee on Small Business of the House of Representatives and the Committee on Small Business and Entrepreneurship of the Senate a report describing—

(A)

the number of loans made under the program;

(B)

the amounts of loans made under the program;

(C)

the uses of loans made under the program;

(D)

repayment progress with respect to loans made under the program;

(E)

the default rate with respect to loans made under the program; and

(F)

other relevant information with respect to the program.

(2)

GAO reports

(A)

Review

The Comptroller General of the United States shall conduct a review of the program to evaluate the effectiveness of the program and identify any waste or abuse relating to the program.

(B)

Reports

Not later than 90 days after the date of enactment of this Act and quarterly thereafter, the Comptroller General shall submit to the Committee on Small Business of the House of Representatives and the Committee on Small Business and Entrepreneurship of the Senate a report describing the results of the review conducted under subparagraph (A).

(h)

Definitions

In this section, the following definitions apply:

(1)

Eligible small business concern

The term eligible small business concern means a small business concern that the Administrator of the Small Business Administration determines—

(A)

is economically healthy;

(B)

has good credit; and

(C)

is unable to obtain a loan on reasonable terms from a non-Federal source (which may be demonstrated with respect to a small business concern by evidence that a lender discontinued a line of credit of such concern notwithstanding the good credit of such concern).

(2)

Small business concern

The term small business concern has the meaning given such term under section 3(a) of the Small Business Act (15 U.S.C. 632(a)).

(i)

Authorization of appropriations

There is authorized to be appropriated to the Administrator of the Small Business Administration $10,000,000,000 to carry out the program, including the hiring of necessary personnel.

(j)

Termination

The program shall terminate on the date that is 2 years after the date of enactment of this Act.