To amend the Internal Revenue Code of 1986 and the Office of Federal Procurement Policy Act to provide economic benefits to small businesses.

Amends the Internal Revenue Code to increase the allowable deduction for meals and entertainment expenses.

Increases the limit on expensing certain depreciable business assets. Increases the amount of property which triggers the phaseout of the maximum deductibility.

Reduces the depreciation recovery period for qualified technological equipment from five to two years.

Amends the Office of Federal Procurement Policy Act to increase the micro-purchase threshold for purchases from small businesses.

Excludes contracts funded under the 2001 Emergency Supplemental Appropriations Act for Recovery from and Response to Terrorist Attacks on the United States from certain award price limitations restricting their award to disadvantaged or HubZone small business concerns.

[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3159 Introduced in House (IH)]







107th CONGRESS
  1st Session
                                H. R. 3159

 To amend the Internal Revenue Code of 1986 and the Office of Federal 
     Procurement Policy Act to provide economic benefits to small 
                              businesses.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            October 17, 2001

   Mr. Wynn introduced the following bill; which was referred to the 
   Committee on Ways and Means, and in addition to the Committees on 
Government Reform, and Small Business, for a period to be subsequently 
   determined by the Speaker, in each case for consideration of such 
 provisions as fall within the jurisdiction of the committee concerned

_______________________________________________________________________

                                 A BILL


 
 To amend the Internal Revenue Code of 1986 and the Office of Federal 
     Procurement Policy Act to provide economic benefits to small 
                              businesses.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. INCREASED DEDUCTION FOR MEALS AND ENTERTAINMENT EXPENSES.

    (a) In General.--Paragraph (1) of section 274(n) of the Internal 
Revenue Code of 1986 (relating to only 50 percent of meal and 
entertainment expenses allowed as deduction) is amended by striking 
``50 percent'' and inserting ``80 percent''.
    (b) Conforming Amendments.--
            (1) Paragraph (3) of section 274(n) of such Code is hereby 
        repealed.
            (2) The heading for subsection (n) of section 274 of such 
        Code is amended by striking ``50 Percent'' and inserting ``80 
        Percent''.
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2001.

SEC. 2. INCREASE IN EXPENSING UNDER SECTION 179.

    (a) In General.--Paragraph (1) of section 179(b) of the Internal 
Revenue Code of 1986 (relating to dollar limitation) is amended by 
striking ``shall not exceed'' and all that follows and inserting 
``shall not exceed $50,000.''.
    (b) Increase in Amount of Property Triggering Phaseout of Maximum 
Benefit.--Paragraph (2) of section 179(b) of such Code is amended by 
striking ``$200,000'' and inserting ``$500,000''.
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2001.

SEC. 3. DEPRECIATION RECOVERY PERIOD FOR QUALIFIED TECHNOLOGICAL 
              EQUIPMENT REDUCED TO 2 YEARS.

    (a) In General.--Paragraph (3) of section 168(e) of the Internal 
Revenue Code of 1986 (relating to classification of property) is 
amended by redesignating subparagraphs (A) through (E) as subparagraphs 
(B) through (F), respectively, and by inserting before subparagraph (B) 
(as so redesignated) the following new subparagraph:
                    ``(A) 2-year property.--The term `2-year property' 
                means qualified technological equipment.''
    (b) 2-Year Recovery Period Under Alternative Depreciation System.--
Subparagraph (C) of section 168(g)(3) of such Code (relating to 
alternative depreciation system for certain property) is amended by 
striking ``5 years'' and inserting ``2 years''.
    (c) Conforming Amendments.--
            (1) Paragraph (1) of section 168(c) of such Code is amended 
        by inserting before the first item in the table the following 
        new item:

  ``2-year property..................................        2 years''.
            (2) Clause (iv) of section 168(e)(3)(B) of such Code is 
        amended by striking clause (iv) and by redesignating clauses 
        (v) and (vi) as clauses (iv) and (v), respectively.
    (d) Effective Date.--The amendments made by this section shall 
apply to property placed in service after December 31, 2001.

SEC. 4. INCREASE IN MICRO-PURCHASE THRESHOLD FOR PURCHASES FROM SMALL 
              BUSINESSES.

    (a) In General.--Section 32(f) of the Office of Federal Procurement 
Policy Act (41 U.S.C. 428(f)) is amended by inserting before the period 
at the end the following: ``, except that with respect to any purchase 
from a small business concern (as defined in section 3(a) of the Small 
Business Act (15 U.S.C. 632(a)) the micro-purchase threshold is the 
amount of $100,000''.
    (b) Conforming Amendments.--Subsections (c) and (d) of section 32 
of the Office of Federal Procurement Policy Act (41 U.S.C. 428) are 
amended by striking ``$2,500'' and inserting ``the micro-purchase 
threshold''.

SEC. 5. SOLE SOURCE PROCUREMENTS PURSUANT TO THE 2001 EMERGENCY 
              SUPPLEMENTAL APPROPRIATIONS ACT FOR RECOVERY FROM AND 
              RESPONSE TO TERRORIST ATTACKS ON THE UNITED STATES.

    Sections 8(a)(1)(D)(i)(II) and 31(b)(2)(A)(ii) of the Small 
Business Act (15 U.S.C. 631 et seq.) shall not apply with respect to 
any contract funded by amounts appropriated under the 2001 Emergency 
Supplemental Appropriations Act for Recovery from and Response to 
Terrorist Attacks on the United States (Public Law 107-38).
                                 <all>