S. 1801 (112th): Small Business Jobs Tax Extenders Act of 2011

112th Congress, 2011–2013. Text as of Nov 03, 2011 (Introduced).

Status & Summary | PDF | Source: GPO

II

112th CONGRESS

1st Session

S. 1801

IN THE SENATE OF THE UNITED STATES

November 3, 2011

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 certain provisions of the Creating Small Business Jobs Act of 2010, and for other purposes.

1.

Short title; etc

(a)

Short title

This Act may be cited as the Small Business Jobs Tax Extenders Act of 2011.

(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; etc.

Sec. 2. Findings.

TITLE I—Extension of small business tax relief

Sec. 101. Extension of temporary exclusion of 100 percent of gain on certain small business stock.

Sec. 102. Extension of 5-year carryback of general business credits of eligible small businesses.

Sec. 103. Extension of alternative minimum tax rules for general business credits of eligible small businesses.

Sec. 104. Extension of temporary reduction in recognition period for built-in gains tax.

Sec. 105. Extension of increased expensing limitations and treatment of certain real property as section 179 property.

Sec. 106. Extension of bonus depreciation.

Sec. 107. Extension of special rule for long-term contract accounting.

Sec. 108. Extension of increased amount allowed as a deduction for start-up expenditures.

Sec. 109. Extension of allowance of deduction for health insurance in computing self-employment taxes.

TITLE II—Offsetting provisions

Sec. 201. Expansion of affordability exception to individual mandate.

2.

Findings

Congress makes the following findings:

(1)

A vibrant and growing small business sector is critical to the recovery of the economy of the United States.

(2)

Small businesses represent 99.7 percent of all employer firms and generate approximately two-thirds of net new jobs.

(3)

Broadening the tax base and lowering statutory rates through comprehensive tax reform is preferable to short term tax rate extensions.

(4)

There is no consensus on Congressional passage and implementation of such reform at this time; it is therefore critical that tax relief for small businesses promulgated in the Small Business Jobs Act of 2010 be extended.

I

Extension of small business tax relief

101.

Extension of temporary exclusion of 100 percent of gain on certain small business stock

(a)

In general

Paragraph (4) of section 1202(a) is amended—

(1)

by striking January 1, 2012 and inserting January 1, 2013, and

(2)

by striking and 2011 and inserting 2011, and 2012 in the heading thereof.

(b)

Effective date

The amendments made by this section shall apply to stock acquired after December 31, 2011.

102.

Extension of 5-year carryback of general business credits of eligible small businesses

(a)

In general

Subparagraph (A) of section 39(a)(4) is amended by or 2011 after 2010.

(b)

Effective date

The amendment made by this section shall apply to credits determined in taxable years beginning after December 31, 2010.

103.

Extension of alternative minimum tax rules for general business credits of eligible small businesses

(a)

In general

Subparagraph (A) of section 38(c)(5) is amended by or 2011 after 2010.

(b)

Effective date

The amendments made by this section shall apply to credits determined in taxable years beginning after December 31, 2010, and to carrybacks of such credits.

104.

Extension of temporary reduction in recognition period for built-in gains tax

(a)

In general

Clause (ii) of section 1374(d)(7)(B) is amended by inserting or 2012, after 2011.

(b)

Conforming amendment

The heading for section 1372(d)(7)(B) is amended by striking and 2011 and inserting 2011, and 2012.

(c)

Effective date

The amendments made by this section shall apply to taxable years beginning after December 31, 2011.

105.

Extension of increased expensing limitations and treatment of certain real property as section 179 property

(a)

In general

Section 179(b) is amended—

(1)

by striking 2010 or 2011 each place it appears in paragraph (1)(B) and (2)(B) and inserting 2010, 2011, or 2012,

(2)

by striking 2012 each place it appears in paragraph (1)(C) and (2)(C) and inserting 2013, and

(3)

by striking 2012 each place it appears in paragraph (1)(D) and (2)(D) and inserting 2013.

(b)

Inflation adjustment

Subparagraph (A) of section 179(b)(6) is amended by striking 2012 and inserting 2013.

(c)

Computer software

Section 179(d)(2)(A)(ii) is amended by striking 2013 and inserting 2014.

(d)

Election

Section 179(c)(2) is amended by striking 2013 and inserting 2014.

(e)

Special rules for treatment of qualified real property

Section 179(f)(1) is amended by striking 2010 or 2011 and inserting 2010, 2011, or 2012.

(f)

Effective date

The amendments made by this section shall apply to taxable years beginning after December 31, 2011.

106.

Extension of bonus depreciation

(a)

In general

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

(1)

by striking January 1, 2014 in subparagraph (A)(iv) and inserting January 1, 2015, and

(2)

by striking January 1, 2013 each place it appears and inserting January 1, 2014.

(b)

100 percent expensing

Paragraph (5) of section 168(k) is amended—

(1)

by striking January 1, 2013 and inserting January 1, 2014, and

(2)

by striking January 1, 2012 each place it appears and inserting January 1, 2013.

(c)

Extension of election To accelerate the AMT credit in lieu of bonus depreciation

(1)

In general

Subclause (II) of section 168(k)(4)(D)(iii) is amended by striking 2013 and inserting 2014.

(2)

Round 3 extension property

Paragraph (4) of section 168(k) is amended by adding at the end the following new subparagraph:

(J)

Special rules for round 3 extension property

(i)

In general

In the case of round 3 extension property, this paragraph shall be applied without regard to—

(I)

the limitation described in subparagraph (B)(i) thereof, and

(II)

the business credit increase amount under subparagraph (E)(iii) thereof.

(ii)

Taxpayers previously electing acceleration

In the case of a taxpayer who made the election under subparagraph (A) for its first taxable year ending after March 31, 2008, a taxpayer who made the election under subparagraph (H)(ii) for its first taxable year ending after December 31, 2008, or a taxpayer who made the election under subparagraph (I)(iii) for its first taxable year ending after December 31, 2010—

(I)

the taxpayer may elect not to have this paragraph apply to round 3 extension property, but

(II)

if the taxpayer does not make the election under subclause (I), in applying this paragraph to the taxpayer the bonus depreciation amount, maximum amount, and maximum increase amount shall be computed and applied to eligible qualified property which is round 3 extension property.

The amounts described in subclause (II) shall be computed separately from any amounts computed with respect to eligible qualified property which is not round 2 extension property.
(iii)

Taxpayers not previously electing acceleration

In the case of a taxpayer who neither made the election under subparagraph (A) for its first taxable year ending after March 31, 2008, nor made the election under subparagraph (H)(ii) for its first taxable year ending after December 31, 2008, nor made the election under subparagraph (I)(iii) for its first taxable year ending after December 31, 2010—

(I)

the taxpayer may elect to have this paragraph apply to its first taxable year ending after December 31, 2011, and each subsequent taxable year, and

(II)

if the taxpayer makes the election under subclause (I), this paragraph shall only apply to eligible qualified property which is round 3 extension property.

(iv)

Round 3 extension property

For purposes of this subparagraph, the term round 3 extension property means property which is eligible qualified property solely by reason of the extension of the application of the special allowance under paragraph (1) pursuant to the amendments made by section 7(a) of the Small Business Jobs Tax Extenders Act of 2011 (and the application of such extension to this paragraph pursuant to the amendment made by section 7(c)(1) of such Act).

.

(d)

Conforming amendments

(1)

The heading for subsection (k) of section 168 is amended by striking January 1, 2013 and inserting January 1, 2014.

(2)

The heading for clause (ii) of section 168(k)(2)(B) is amended by striking pre-January 1, 2013 and inserting pre-January 1, 2014.

(3)

Paragraph (5) of section 168(l) is amended—

(A)

by striking and at the end of subparagraph (A),

(B)

by redesignating subparagraph (C) as subparagraph (B), and

(C)

by inserting after subparagraph (A) the following new subparagraph:

(B)

by substituting January 1, 2013 for January 1, 2014 in clause (i) thereof, and

.

(4)

Subparagraph (C) of section 168(n)(2) is amended by striking January 1, 2013 and inserting January 1, 2014.

(5)

Subparagraph (D) of section 1400L(b)(2) is amended by striking January 1, 2013 and inserting January 1, 2014.

(6)

Subparagraph (B) of section 1400N(d)(3) is amended by striking January 1, 2013 and inserting January 1, 2014.

(e)

Effective dates

The amendments made by this section shall apply to property placed in service after December 31, 2011, in taxable years ending after such date.

107.

Extension of special rule for long-term contract accounting

(a)

In general

Clause (ii) of section 460(c)(6)(B) is amended by striking January 1, 2011 (January 1, 2012 and inserting January 1, 2012 (January 1, 2013.

(b)

Effective date

The amendment made by this section shall apply to property placed in service after December 31, 2010.

108.

Extension of increased amount allowed as a deduction for start-up expenditures

(a)

In general

Paragraph (3) of section 195(b) is amended—

(1)

by inserting or 2011 after 2010, and

(2)

by inserting and 2011 in the heading thereof.

(b)

Effective date

The amendments made by this section shall apply to amounts paid or incurred in taxable years beginning after December 31, 2010.

109.

Extension of allowance of deduction for health insurance in computing self-employment taxes

(a)

In general

Paragraph (4) of section 162(l) is amended by striking December 31, 2010 and inserting December 31, 2011.

(b)

Effective date

The amendment made by this section shall apply to taxable years beginning after December 31, 2010.

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Offsetting provisions

201.

Expansion of affordability exception to individual mandate

Section 5000A(e)(1) is amended by striking 8 percent each place it appears and inserting 5 percent.