I
112th CONGRESS
2d Session
H. R. 6102
IN THE HOUSE OF REPRESENTATIVES
July 11, 2012
Mr. Gerlach (for himself and Mr. Kind) 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.
Short title; etc
Short title
This Act may be cited
as the America’s Small Business Tax
Relief Act of 2012
.
References
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.
Table of contents
The table of contents for this Act is as follows:
Sec. 1. Short title; etc.
Sec. 2. 100-Percent exclusion of gain on certain small business stock made permanent.
Sec. 3. 5-Year carryback of general business credits of eligible small businesses made permanent.
Sec. 4. Alternative minimum tax rules for general business credits of eligible small businesses made permanent.
Sec. 5. Reduction in recognition period for built-in gains tax made permanent.
Sec. 6. Increased expensing limitations and treatment of certain real property as section 179 property made permanent.
Sec. 7. Special rule for long-term contract accounting made permanent.
Sec. 8. Increase of amount allowed as a deduction for start-up expenditures made permanent.
Sec. 9. Allowance of deduction for health insurance in computing self-employment taxes made permanent.
100-Percent exclusion of gain on certain small business stock made permanent
In general
Paragraph (4) of section 1202(a) is amended—
by striking
after the date of the enactment of the Creating Small Business Jobs Act
of 2010 and before January 1, 2012
and inserting after September
27, 2010
, and
by striking
during certain periods in
2010 and 2011
and inserting after September 27, 2010
in the heading thereof.
Effective date
The amendments made by this section shall apply to stock acquired after December 31, 2011.
5-Year carryback of general business credits of eligible small businesses made permanent
In general
Subparagraph (A) of section 39(a)(4) is amended by
striking determined in the first taxable year of the taxpayer beginning
in 2010
.
Effective date
The amendment made by this section shall apply to credits determined in taxable years beginning after December 31, 2011.
Alternative minimum tax rules for general business credits of eligible small businesses made permanent
In general
Paragraph (5) of section 38(c) is amended—
by striking
determined in taxable years beginning in 2010
in subparagraph
(A), and
by striking
in
2010
in the heading of such paragraph.
Effective date
The amendments made by this section shall apply to credits determined in taxable years beginning after December 31, 2011, and to carrybacks of such credits.
Reduction in recognition period for built-in gains tax made permanent
In general
Subparagraph (A) of section 1374(d)(7) is amended by
striking 10-year period
and inserting 5-year
period
.
Conforming amendments
Paragraph (7) of section 1374(d) is amended by striking subparagraph (B) and by redesignating subparagraph (C) as subparagraph (B).
Subparagraph (B)
of section 1374(d), as redesignated by paragraph (1), is amended by striking
section 953(e)—
and all that follows and inserting
section 953(e), subparagraph (A) shall be applied without regard to the
phrase
.5-year
.
Effective date
The amendments made by this section shall apply to taxable years beginning after December 31, 2011.
Increased expensing limitations and treatment of certain real property as section 179 property made permanent
In general
Subsection (b) of section 179 is amended—
by striking
shall not exceed—
and all that follows in paragraph (1) and
inserting shall not exceed $500,000.
,
by striking
exceeds—
and all that follows in paragraph (2) and inserting
exceeds $2,000,000.
, and
by striking paragraph (6).
Computer software
Clause (ii) of section 179(d)(1)(A) is amended by
striking and which is placed in service in a taxable year beginning
after 2002 and before 2013,
.
Election
Paragraph (2) of section 179(c) is amended to read as follows:
Revocation of election
Any election made under this section, and any specification contained in any such election, may be revoked by the taxpayer with respect to any property, and such revocation, once made, shall be irrevocable.
.
Special rules for treatment of qualified real property
Paragraph (1) of section
179(f) is amended by striking beginning in 2010 or 2011
.
Effective date
The amendments made by this section shall apply to taxable years beginning after December 31, 2011.
Special rule for long-term contract accounting made permanent
In general
Subparagraph (B) of section 460(c)(6) is amended by
striking which—
and all that follows and inserting which
has a recovery period of 7 years or less.
.
Effective date
The amendment made by this section shall apply to property placed in service after December 31, 2011.
Increase of amount allowed as a deduction for start-up expenditures made permanent
In general
Clause (ii) of section 195(b)(1)(A) is amended—
by striking
$5,000
and inserting $10,000
, and
by striking
$50,000
and inserting $60,000
.
Conforming amendment
Subsection (b) of section 195 is amended by striking paragraph (3).
Effective date
The amendments made by this section shall apply to amounts paid or incurred in taxable years beginning after December 31, 2011.
Allowance of deduction for health insurance in computing self-employment taxes made permanent
In general
Paragraph (4) of section 162(l) is amended by striking
, or after December 31, 2010
.
Effective date
The amendment made by this section shall apply to taxable years beginning after December 31, 2011.
