IN THE SENATE OF THE UNITED STATES
March 5, 2010
Mr. Bennett introduced the following bill; which was read twice and referred to the Committee on Finance
To amend the Internal Revenue Code of 1986 to allow the expensing of certain real property.
This Act may be cited as the
Main Street Revitalization Act of
10-year carryback of operating losses of small businesses
Section 172(b)(1) of the Internal Revenue Code of 1986 is amended by adding at the end the following new subparagraph:
Carryback for 2010 and 2011 net operating losses of small businesses
If a small business (as defined in subparagraph (F)(iii) determined by applying such subparagraph for a 10-taxable year period) elects the application of this subparagraph with respect to an applicable 2010 or 2011 net operating loss—
subparagraph (A)(i) shall be applied by
substituting any whole number elected by the taxpayer which is more than 2 and
less than 11 for
subparagraph (E)(ii) shall be applied by
substituting the whole number which is one less than the whole number
substituted under subclause (I) for
subparagraph (F) shall not apply.
Applicable 2010 or 2011 net operating loss
For purposes of this
subparagraph, the term
applicable 2010 or 2011 net operating
the taxpayer’s net operating loss for any taxable year ending in 2010 or 2011, or
if the taxpayer elects to have this subclause apply in lieu of subclause (I), the taxpayer’s net operating loss for any taxable year beginning in 2010 or 2011.
Any election under this subparagraph shall be made in such manner as may be prescribed by the Secretary, and shall be made by the due date (including extension of time) for filing the taxpayer’s return for the taxable year of the net operating loss. Any such election, once made, shall be irrevocable. Any election under this subparagraph may be made only with respect to 2 taxable years.
The Secretary of Treasury or the Secretary's designee shall prescribe such rules as are necessary to prevent the abuse of the purposes of the amendments made by this section, including anti-stuffing rules, anti-churning rules (including rules relating to sale-leasebacks), and rules similar to the rules under section 1091 of the Internal Revenue Code of 1986 relating to losses from wash sales.
Except as otherwise provided in this subsection, the amendments made by this section shall apply to net operating losses arising in taxable years ending after December 31, 2009.
In the case of a net operating loss for a taxable year ending before the date of the enactment of this Act—
any election made under section 172(b)(3) of the Internal Revenue Code of 1986 with respect to such loss may (notwithstanding such section) be revoked before the applicable date, and
any application under section 6411(a) of such Code with respect to such loss shall be treated as timely filed if filed before the applicable date.
applicable datemeans the date which is 60 days after the date of the enactment of this Act.
Permanent increase in limitations on expensing of certain depreciable business assets; expensing of certain real property
Subsection (b) of section 179 of the Internal Revenue Code of 1986 (relating to limitations) is amended—
$25,000 and all
that follows in paragraph (1) and inserting
$200,000 and all
that follows in paragraph (2) and inserting
after 2007 and before
2011, the $120,000 and $500,000 in paragraph (5)(A) and inserting
after 2010, the $250,000 and the $800,000,
paragraph (5)(A)(ii) and inserting
by striking paragraph (7).
Permanent expensing of computer software; expensing for certain real property
Paragraph (1) of section 179(d) of the Internal Revenue Code of 1986 (defining section 179 property) is amended to read as follows:
Section 179 property
For purposes of this section, the term section 179 property means property acquired by purchase for use in the active conduct of a trade or business—
tangible property (to which section 168 applies), or
computer software (as defined in section 197(e)(3)(B)) which is described in section 197(e)(3)(A)(i), to which section 167 applies, and which is placed in service in a taxable year beginning after 2002, and
is section 1245 property (as defined in section 1245(a)(3)), or
which is section 1250 property (as defined by section 1250(c)).
The amendments made by this section shall apply to taxable years beginning after December 31, 2009.
Increase in amount allowed as deduction for start-up expenditures
Subsection (b) of section 195 of the Internal Revenue Code of 1986 is amended by adding at the end the following new paragraph:
Special rule for taxable years beginning in 2010, 2011, or 2012
case of a taxable year beginning in 2010, 2011, or 2012, paragraph (1)(A)(ii)
shall be applied by substituting
The amendment made by this section shall apply to amounts paid or incurred in taxable years beginning after December 31, 2009.