(This measure has not been amended since it was introduced. The summary has been expanded because action occurred on the measure.)
Title V: Tax Provisions - Small Business Jobs Tax Relief Act of 2010 - Subtitle A: Small Business Tax Incentives - Part 1: General Provisions - (Sec. 501) Amends the Internal Revenue Code to increase from 50% to 100% the exclusion from gross income of the gain from the sale or exchange of qualified small business stock acquired after March 15, 2010, and before January 1, 2012.
Part 2: Limitations and Reporting on Certain Penalties - (Sec. 511) Limits the penalty for failure to disclose a reportable transaction (a transaction determined by the Internal Revenue Service [IRS] as having a potential for tax avoidance or evasion) to 75% of the decrease in tax resulting from such transaction.
(Sec. 512) Requires the Commissioner of Internal Revenue to report by December 31, 2010, and annually thereafter, to the House Committee on Ways and Means and the Senate Committee on Finance on penalties assessed for certain tax shelters and reportable transactions.
Part 3: Other Provisions - (Sec. 521) Increases the tax deduction for trade or business start-up expenditures from $5,000 to $20,000 in 2010 and 2011.
(Sec. 522) Revises the definition of "qualified nonrecourse financing" to include qualified nonrecourse real property or Small Business Investment Company financing as amounts at risk for purposes of determining the deductibility of losses from certain investment activities, including farming, leasing, and energy exploration.
(Sec. 523) Excludes from gross income any amount paid for a borrower under the Small Business Administration (SBA) borrower assistance program.
Subtitle B: Revenue Provisions - (Sec. 531) Revises rules for valuing assets in grantor retained annuity trusts to require that the right to receive fixed amounts from an annuity last for a term of not less than 10 years, that such fixed amounts not decrease during the first 10 years of the annuity term, and that the remainder interest have a value greater than zero when transferred.
(Sec. 532) Excludes any fuel with an acid number greater than 25 from the definition of "cellulosic biofuel" for purposes of the tax credit for alcohol used as fuel.
(Sec. 533) Increases by 7.75% the estimated tax installment for the third quarter of 2015 for corporations with assets of not less than $1 billion.
[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5486 Introduced in House (IH)]
111th CONGRESS
2d Session
H. R. 5486
To amend the Internal Revenue Code of 1986 to provide tax incentives
for small business job creation, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
June 9, 2010
Mr. Levin introduced the following bill; which was referred to the
Committee on Ways and Means
_______________________________________________________________________
A BILL
To amend the Internal Revenue Code of 1986 to provide tax incentives
for small business job creation, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
TITLE V--TAX PROVISIONS
SEC. 500. SHORT TITLE; ETC.
(a) Short Title.--This title may be cited as the ``Small Business
Jobs Tax Relief Act of 2010''.
(b) Amendment of 1986 Code.--Except as otherwise expressly
provided, whenever in this title 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 for this title is as
follows:
Sec. 500. Short title; etc.
Subtitle A--Small Business Tax Incentives
Part 1--General Provisions
Sec. 501. Temporary exclusion of 100 percent of gain on certain small
business stock.
Part 2--Limitations and Reporting on Certain Penalties
Sec. 511. Limitation on penalty for failure to disclose certain
information.
Sec. 512. Annual reports on penalties and certain other enforcement
actions.
Part 3--Other Provisions
Sec. 521. Increase in amount allowed as deduction for start-up
expenditures.
Sec. 522. Nonrecourse small business investment company loans from the
Small Business Administration treated as
amounts at risk.
Sec. 523. Benefits under the Small Business Borrower Assistance Program
excluded from gross income.
Subtitle B--Revenue Provisions
Sec. 531. Required minimum 10-year term, etc., for grantor retained
annuity trusts.
Sec. 532. Crude tall oil ineligible for cellulosic biofuel producer
credit.
Sec. 533. Time for payment of corporate estimated taxes.
Subtitle A--Small Business Tax Incentives
PART 1--GENERAL PROVISIONS
SEC. 501. TEMPORARY EXCLUSION OF 100 PERCENT OF GAIN ON CERTAIN SMALL
BUSINESS STOCK.
(a) In General.--Subsection (a) of section 1202 is amended by
adding at the end the following new paragraph:
``(4) Special 100 percent exclusion.--In the case of
qualified small business stock acquired after March 15, 2010,
and before January 1, 2012--
``(A) paragraph (1) shall be applied by
substituting `100 percent' for `50 percent',
``(B) paragraph (2) shall not apply, and
``(C) paragraph (7) of section 57(a) shall not
apply.''.
(b) Conforming Amendments.--Paragraph (3) of section 1202(a) is
amended--
(1) by striking ``after the date of the enactment of this
paragraph and before January 1, 2011'' and inserting ``after
February 17, 2009, and before March 16, 2010''; and
(2) by striking ``Special rules for 2009 and 2010'' in the
heading and inserting ``Special 75 percent exclusion''.
(c) Effective Date.--The amendments made by this section shall
apply to stock acquired after March 15, 2010.
PART 2--LIMITATIONS AND REPORTING ON CERTAIN PENALTIES
SEC. 511. LIMITATION ON PENALTY FOR FAILURE TO DISCLOSE CERTAIN
INFORMATION.
(a) In General.--Subsection (b) of section 6707A is amended to read
as follows:
``(b) Amount of Penalty.--
``(1) In general.--Except as otherwise provided in this
subsection, the amount of the penalty under subsection (a) with
respect to any reportable transaction shall be 75 percent of
the decrease in tax shown on the return as a result of such
transaction (or which would have resulted from such transaction
if such transaction were respected for Federal tax purposes).
``(2) Maximum penalty.--The amount of the penalty under
subsection (a) with respect to any reportable transaction for
any taxable year shall not exceed--
``(A) in the case of a listed transaction, $200,000
($100,000 in the case of a natural person), or
``(B) in the case of any other reportable
transaction, $50,000 ($10,000 in the case of a natural
person).
``(3) Minimum penalty.--The amount of the penalty under
subsection (a) with respect to any transaction for any taxable
year shall not be less than $10,000 ($5,000 in the case of a
natural person).''.
(b) Effective Date.--The amendment made by this section shall apply
to penalties assessed after December 31, 2006.
SEC. 512. ANNUAL REPORTS ON PENALTIES AND CERTAIN OTHER ENFORCEMENT
ACTIONS.
(a) In General.--The Commissioner of Internal Revenue, in
consultation with the Secretary of the Treasury, shall submit to the
Committee on Ways and Means of the House of Representatives and the
Committee on Finance of the Senate an annual report on the penalties
assessed by the Internal Revenue Service during the preceding year
under each of the following provisions of the Internal Revenue Code of
1986:
(1) Section 6662A (relating to accuracy-related penalty on
understatements with respect to reportable transactions).
(2) Section 6700(a) (relating to promoting abusive tax
shelters).
(3) Section 6707 (relating to failure to furnish
information regarding reportable transactions).
(4) Section 6707A (relating to failure to include
reportable transaction information with return).
(5) Section 6708 (relating to failure to maintain lists of
advisees with respect to reportable transactions).
(b) Additional Information.--The report required under subsection
(a) shall also include information on the following with respect to
each year:
(1) Any action taken under section 330(b) of title 31,
United States Code, with respect to any reportable transaction
(as defined in section 6707A(c) of the Internal Revenue Code of
1986).
(2) Any extension of the time for assessment of tax
enforced, or assessment of any amount under such an extension,
under paragraph (10) of section 6501(c) of the Internal Revenue
Code of 1986.
(c) Date of Report.--The first report required under subsection (a)
shall be submitted not later than December 31, 2010.
PART 3--OTHER PROVISIONS
SEC. 521. INCREASE IN AMOUNT ALLOWED AS DEDUCTION FOR START-UP
EXPENDITURES.
(a) In General.--Subsection (b) of section 195 is amended by adding
at the end the following new paragraph:
``(3) Increased limitation for taxable years beginning in
2010 or 2011.--In the case of any taxable year beginning in
2010 or 2011, paragraph (1)(A)(ii) shall be applied--
``(A) by substituting `$20,000' for `$5,000', and
``(B) by substituting `$75,000' for `$50,000'.''.
(b) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2009.
SEC. 522. NONRECOURSE SMALL BUSINESS INVESTMENT COMPANY LOANS FROM THE
SMALL BUSINESS ADMINISTRATION TREATED AS AMOUNTS AT RISK.
(a) In General.--Subparagraph (B) of section 465(b)(6) is amended
to read as follows:
``(B) Qualified nonrecourse financing.--For
purposes of this paragraph--
``(i) In general.--The term `qualified
nonrecourse financing' means any financing--
``(I) which is qualified real
property financing or qualified SBIC
financing,
``(II) except to the extent
provided in regulations, with respect
to which no person is personally liable
for repayment, and
``(III) which is not convertible
debt.
``(ii) Qualified real property financing.--
The term `qualified real property financing'
means any financing which--
``(I) is borrowed by the taxpayer
with respect to the activity of holding
real property,
``(II) is secured by real property
used in such activity, and
``(III) is borrowed by the taxpayer
from a qualified person or represents a
loan from any Federal, State, or local
government or instrumentality thereof,
or is guaranteed by any Federal, State,
or local government.
``(iii) Qualified sbic financing.--The term
`qualified SBIC financing' means any financing
which--
``(I) is borrowed by a small
business investment company (within the
meaning of section 301 of the Small
Business Investment Act of 1958), and
``(II) is borrowed from, or
guaranteed by, the Small Business
Administration under the authority of
section 303(b) of such Act.''.
(b) Conforming Amendments.--Subparagraph (A) of section 465(b)(6)
is amended--
(1) by striking ``in the case of an activity of holding
real property,''; and
(2) by striking ``which is secured by real property used in
such activity''.
(c) Effective Date.--The amendments made by this section shall
apply to loans and guarantees made after the date of the enactment of
this Act.
SEC. 523. BENEFITS UNDER THE SMALL BUSINESS BORROWER ASSISTANCE PROGRAM
EXCLUDED FROM GROSS INCOME.
(a) In General.--Part III of subchapter B of chapter 1 is amended
by adding at the end the following new section:
``SEC. 139F. BENEFITS UNDER THE SMALL BUSINESS BORROWER ASSISTANCE
PROGRAM.
``(a) In General.--Gross income shall not include any amount paid
on behalf of a borrower by the Administrator of the Small Business
Administration under the Small Business Borrower Assistance program
established under section 402 of the Small Business Assistance Fund Act
of 2010 (as in effect immediately after the date of the enactment of
such Act).
``(b) Denial of Double Benefit.--Notwithstanding any other
provision of this subtitle, with respect to the person for whose
benefit a payment described in subsection (a) is made--
``(1) Interest.--No deduction shall be allowed for interest
to the extent the liability for such interest is covered by
such payment.
``(2) Payments of principal.--If any payment is applied to
reduce the principal of the loan to which such payment
relates--
``(A) Allocation among financed expenditures.--Such
payment shall be allocated pro rata among the
expenditures financed with such loan.
``(B) Credits and deductible expenses.--No
deduction or credit shall be allowed for, or by reason
of, any such expenditure to the extent of the amount of
the payment allocated to such expenditure under
subparagraph (A).
``(C) Adjustment of basis.--The adjusted basis of
any property acquired with such expenditure shall be
reduced to the extent of the amount of the payment
allocated to such expenditure under subparagraph
(A).''.
(b) Clerical Amendments.--The table of sections for part III of
subchapter B of chapter 1 is amended by adding at the end the following
new item:
``Sec. 139F. Benefits under the Small Business Borrower Assistance
Program.''.
(c) Effective Date.--The amendments made by this section shall
apply to payments made after the date of the enactment of this Act.
Subtitle B--Revenue Provisions
SEC. 531. REQUIRED MINIMUM 10-YEAR TERM, ETC., FOR GRANTOR RETAINED
ANNUITY TRUSTS.
(a) In General.--Subsection (b) of section 2702 is amended--
(1) by redesignating paragraphs (1), (2) and (3) as
subparagraphs (A), (B), and (C), respectively, and by moving
such subparagraphs (as so redesignated) 2 ems to the right;
(2) by striking ``For purposes of'' and inserting the
following:
``(1) In general.--For purposes of'';
(3) by striking ``paragraph (1) or (2)'' in paragraph
(1)(C) (as so redesignated) and inserting ``subparagraph (A) or
(B)''; and
(4) by adding at the end the following new paragraph:
``(2) Additional requirements with respect to grantor
retained annuities.--For purposes of subsection (a), in the
case of an interest described in paragraph (1)(A) (determined
without regard to this paragraph) which is retained by the
transferor, such interest shall be treated as described in such
paragraph only if--
``(A) the right to receive the fixed amounts
referred to in such paragraph is for a term of not less
than 10 years,
``(B) such fixed amounts, when determined on an
annual basis, do not decrease relative to any prior
year during the first 10 years of the term referred to
in subparagraph (A), and
``(C) the remainder interest has a value greater
than zero determined as of the time of the transfer.''.
(b) Effective Date.--The amendments made by this section shall
apply to transfers made after the date of the enactment of this Act.
SEC. 532. CRUDE TALL OIL INELIGIBLE FOR CELLULOSIC BIOFUEL PRODUCER
CREDIT.
(a) In General.--Clause (iii) of section 40(b)(6)(E) is amended--
(1) by striking ``or'' at the end of subclause (I),
(2) by striking the period at the end of subclause (II) and
inserting ``, or'',
(3) by adding at the end the following new subclause:
``(III) such fuel has an acid
number greater than 25.'', and
(4) by striking ``unprocessed'' in the heading and
inserting ``certain''.
(b) Effective Date.--The amendment made by this section shall apply
to fuels sold or used on or after January 1, 2010.
SEC. 533. TIME FOR PAYMENT OF CORPORATE ESTIMATED TAXES.
The percentage under paragraph (2) of section 561 of the Hiring
Incentives to Restore Employment Act in effect on the date of the
enactment of this Act is increased by 7.75 percentage points.
<all>
Introduced in House
Introduced in House
Referred to the House Committee on Ways and Means.
Rules Committee Resolution H. Res. 1436 Reported to House. Rule provides for consideration of H.R. 5486 and H.R. 5297 with 1 hour of general debate. Previous question shall be considered as ordered without intervening motions except motion to recommit with or without instructions. Measure will be considered read. Specified amendments are in order. All points of order against consideration of each bill except for clauses 9 and 10 or rule XXI are waived.
Considered under the provisions of rule H. Res. 1436. (consideration: CR H4469-4476)
Rule provides for consideration of H.R. 5486 and H.R. 5297 with 1 hour of general debate. Previous question shall be considered as ordered without intervening motions except motion to recommit with or without instructions. Measure will be considered read. All points of order against consideration of each bill except for clauses 9 and 10 or rule XXI are waived.
DEBATE - The House proceeded with one hour of debate on H.R. 5486.
The previous question was ordered pursuant to the rule. (consideration: CR H4476)
POSTPONED PROCEEDINGS - The Chair announced further consideration of H.R. 5486 would be postponed until a time to be announced.
Llama 3.2 · runs locally in your browser
Ask anything about this bill. The AI reads the full text to answer.
Enter to send · Shift+Enter for new line
Considered as unfinished business. (consideration: CR H4477-4479)
Mr. Camp moved to recommit with instructions to Ways and Means. (consideration: CR H4477-4479; text: CR H4477)
DEBATE - The House proceeded with 10 minutes of debate on the Camp (MI) motion to recommit with instructions. The instructions in the motion seek to report the same back to the House forthwith with an amendment adding a section entitled "REPEAL OF INDIVIDUAL HEALTH INSURANCE MANDATE".
The previous question on the motion to recommit with instructions was ordered without objection. (consideration: CR H4478)
On motion to recommit with instructions Failed by recorded vote: 187 - 230 (Roll no. 362). (consideration: CR H4479)
Roll Call #362 (House)Passed/agreed to in House: On passage Passed by recorded vote: 247 - 170 (Roll no. 363).(text: CR H4469-4470)
Roll Call #363 (House)On passage Passed by recorded vote: 247 - 170 (Roll no. 363). (text: CR H4469-4470)
Roll Call #363 (House)Motion to reconsider laid on the table Agreed to without objection.
Pursuant to the provisions of H. Res. 1436, H.R. 5486 is laid on the table.