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Text of the Small Business Tax Extenders Act of 2012

This bill was introduced on January 31, 2012, in a previous session of Congress, but was not enacted. The text of the bill below is as of Jan 31, 2012 (Introduced).

Source: GPO

II

112th CONGRESS

2d Session

S. 2050

IN THE SENATE OF THE UNITED STATES

January 31, 2012

(for herself, Ms. Landrieu, and Mr. Brown of Massachusetts) 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; references

(a)

Short title

This Act may be cited as the Small Business Tax Extenders Act of 2012.

(b)

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.

2.

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.

3.

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 inserting , 2011, or 2012 after 2010.

(b)

Effective date

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

4.

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 inserting , 2011, or 2012 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.

5.

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

(a)

In general

Clause (ii) of section 1374(d)(7)(B) of the Internal Revenue Code of 1986 is amended by inserting 2012, or 2013, after 2011,.

(b)

Conforming amendment

The heading for section 1374(d)(7)(B) is amended by striking and 2011 and inserting 2011, and 2012.

(c)

Technical amendment

Subparagraph (B) of section 1374(d)(7) of such Code is amended by striking The preceding sentence and inserting the following: For purposes of applying this subparagraph to an installment sale, each portion of such installment sale shall be treated as a sale occurring in the taxable year in which the first portion of such installment sale occurred. This subparagraph.

(d)

Effective date

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

6.

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)(1)(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.

7.

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, 2013 (January 1, 2014.

(b)

Effective date

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

8.

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 , 2001, or 2012 after 2010, and

(2)

by inserting 2011, and 2012 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.

9.

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, 2012.

(b)

Effective date

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