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Text of the Small Business Stimulus Act of 2009

This bill was introduced on January 6, 2009, in a previous session of Congress, but was not enacted. The text of the bill below is as of Jan 6, 2009 (Introduced).

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Source: GPO

II

111th CONGRESS

1st Session

S. 156

IN THE SENATE OF THE UNITED STATES

January 6, 2009

(for herself, Mr. Kerry, and Ms. Landrieu) introduced the following bill; which was read twice and referred to the Committee on Finance

A BILL

To amend the Internal Revenue Code of 1986 to extend enhanced small business expensing and to provide for a 5-year net operating loss carryback for losses incurred in 2008 or 2009.

1.

Short title

This Act may be cited as the Small Business Stimulus Act of 2009.

2.

Extension of increased expensing for small businesses

(a)

In general

Paragraph (7) of section 179(b) of the Internal Revenue Code of 1986 is amended—

(1)

by striking 2008 and inserting 2008, 2009, or 2010, and

(2)

by striking 2008 in the heading thereof and inserting 2008, 2009, or 2010.

(b)

Effective date

The amendments made by this section shall apply to taxable years beginning after December 31, 2008.

3.

5-year carryback of net operating losses

(a)

In general

Subparagraph (H) of section 172(b)(1) of the Internal Revenue Code of 1986 is amended to read as follows:

(H)

Carryback for 2008 and 2009 net operating losses

In the case of a net operating loss for any taxable year ending during 2008 or 2009—

(i)

subparagraph (A)(i) shall be applied by substituting 5 for 2,

(ii)

subparagraph (E)(ii) shall be applied by substituting 4 for 2, and

(iii)

subparagraph (F) shall not apply.

.

(b)

Alternative tax net operating loss deduction

Subclause (I) of section 56(d)(1)(A)(ii) of the Internal Revenue Code of 1986 is amended to read as follows:

(I)

the amount of such deduction attributable to the sum of carrybacks of net operating losses from taxable years ending during 2001, 2002, 2008, or 2009 and carryovers of net operating losses to taxable years ending during such calendar years, or

.

(c)

Effective date

(1)

In general

Except as provided in paragraph (2), the amendments made by this section shall apply to net operating losses arising in taxable years ending after December 31, 2007.

(2)

Alternative tax net operating loss deduction

The amendments made by subsection (b) shall apply to taxable years ending after 1997.