Helping Small Businesses Grow and Prosper Act of 2009

Helping Small Businesses Grow and Prosper Act of 2009 - Amends the Internal Revenue Code to increase the amount of business-related meal and entertainment expenses allowed as a tax deduction for businesses that employ an average of less than 50 employees in a taxable year to 80% (currently, 50%) of such expenses.

[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3952 Introduced in House (IH)]

111th CONGRESS
  1st Session
                                H. R. 3952

    To amend the Internal Revenue Code of 1986 increase the amount 
allowable as a deduction for meals and entertainment expenses of small 
                              businesses.


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                    IN THE HOUSE OF REPRESENTATIVES

                            October 28, 2009

 Ms. Titus (for herself, Mr. Olson, Ms. Berkley, Mr. Hall of New York, 
   Mr. Paul, Mrs. McMorris Rodgers, and Mr. Manzullo) introduced the 
 following bill; which was referred to the Committee on Ways and Means

_______________________________________________________________________

                                 A BILL


 
    To amend the Internal Revenue Code of 1986 increase the amount 
allowable as a deduction for meals and entertainment expenses of small 
                              businesses.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Helping Small Businesses Grow and 
Prosper Act of 2009''.

SEC. 2. INCREASED MEALS AND ENTERTAINMENT EXPENSE DEDUCTION FOR SMALL 
              BUSINESSES.

    (a) In General.--Subsection (n) of section 274 of the Internal 
Revenue Code of 1986 is amended by adding at the end the following new 
paragraph:
            ``(4) Increased percentage for small business expenses.--
                    ``(A) In general.--In the case of expenses or items 
                described in paragraph (1) paid or incurred by the 
                taxpayer in carrying on an eligible trade or business, 
                such paragraph shall be applied by substituting `80 
                percent' for `50 percent'.
                    ``(B) Eligible trade or business.--
                            ``(i) In general.--For purposes of 
                        subparagraph (A), the term `eligible trade or 
                        business' means, with respect to any taxable 
                        year, a trade or business (whether or not 
                        incorporated) which employed an average of less 
                        than 50 employees on business days during the 
                        taxable year.
                            ``(ii) Controlled groups.--For purposes of 
                        clause (i), all persons treated as a single 
                        employer under subsection (b), (c), (m), or (o) 
                        of section 414 shall be treated as a single 
                        employer.''.
    (b) Effective Date.--The amendment made by this section shall apply 
to expenses paid or incurred after the date of the enactment of this 
Act.
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