< Back to S. 2284 (112th Congress, 2011–2013)

Text of A bill to amend the Internal Revenue Code of 1986 to provide expensing for small businesses.

This bill was introduced on April 16, 2012, in a previous session of Congress, but was not enacted. The text of the bill below is as of Apr 16, 2012 (Introduced).

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Source: GPO

II

112th CONGRESS

2d Session

S. 2284

IN THE SENATE OF THE UNITED STATES

April 16, 2012

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 provide expensing for small businesses.

1.

Election for small businesses to expense depreciable property

(a)

In general

Part VI of subchapter B of chapter 1 of the Internal Revenue Code of 1986 is amended by inserting after section 179E the following new section:

179F.

Election for small businesses to expense certain depreciable property

(a)

In general

An eligible small business may elect to treat the cost of any qualified property as an expense which is not chargeable to a capital account.

(b)

Eligible small business

For purposes of this section—

(1)

In general

The term eligible small business means, with respect to any taxable year, any trade or business the net profit of which does not exceed $1,000,000.

(2)

Net profit

The term net profit means the excess of the aggregate gross receipts over the sum of—

(A)

the costs of goods sold which are allocable to such receipts, and

(B)

other expenses, losses, or deductions which are properly allocable to such receipts.

(3)

Aggregation rules

All persons treated as a single employer under subsection (a) or (b) of section 52 or subsection (m) or (o) of section 414 shall be treated as a single trade or business for purposes of this subsection.

(c)

Election

An election under this section for any taxable year shall be made on the taxpayer's return of the tax imposed by this chapter for the taxable year. Such election shall be made in such manner as the Secretary may by regulation prescribe.

(d)

Definitions and special rules

(1)

Qualified property

For purposes of this section, the term qualified property means any property which is section 179 property as defined in section 179(d)(1), determined—

(A)

without regard to any placed in service date under subparagraph (A)(ii) thereof, and

(B)

without regard to any taxable year limitation under section 179(f).

(2)

Special rules

For purposes of this section, rules similar to the rules of paragraphs (3), (4), (5), (9), and (10) of section 179(d) shall apply.

.

(b)

Clerical amendment

Part VI of subchapter B of chapter 1 of the Internal Revenue Code of 1986 is amended by inserting after the item relating to section 179E the following new item:

Sec. 179F. Election for small businesses to expense certain depreciable property.

.

(c)

Effective date

The amendments made by this section shall apply to taxable years beginning after December 31, 2012.