A bill to amend the Internal Revenue Code of 1986 to allow the expensing of certain real property.

Summary: Main Street Revitalization Act of 2010 - Amends the Internal Revenue Code to: (1) allow small businesses to elect a 10-year carryback of net operation losses incurred in 2010 and 2011; (2) make permanent the increased ($250,000) expensing allowance for depreciable business assets; (3) expand the types of assets eligible for expensing; and (4) increase the tax deduction for business start-up expenditures.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Main Street Revitalization Act of 
2010''.

SEC. 2. 10-YEAR CARRYBACK OF OPERATING LOSSES OF SMALL BUSINESSES.

    (a) In General.--Section 172(b)(1) of the Internal Revenue Code of 
1986 is amended by adding at the end the following new subparagraph:
                    ``(I) Carryback for 2010 and 2011 net operating 
                losses of small businesses.--
                            ``(i) In general.--If a small business (as 
                        defined in subparagraph (F)(iii) determined by 
                        applying such subparagraph for a 10-taxable 
                        year period) elects the application of this 
                        subparagraph with respect to an applicable 2010 
                        or 2011 net operating loss--
                                    ``(I) subparagraph (A)(i) shall be 
                                applied by substituting any whole 
                                number elected by the taxpayer which is 
                                more than 2 and less than 11 for `2',
                                    ``(II) subparagraph (E)(ii) shall 
                                be applied by substituting the whole 
                                number which is one less than the whole 
                                number substituted under subclause (I) 
                                for `2', and
                                    ``(III) subparagraph (F) shall not 
                                apply.
                            ``(ii) Applicable 2010 or 2011 net 
                        operating loss.--For purposes of this 
                        subparagraph, the term `applicable 2010 or 2011 
                        net operating loss' means--
                                    ``(I) the taxpayer's net operating 
                                loss for any taxable year ending in 
                                2010 or 2011, or
                                    ``(II) if the taxpayer elects to 
                                have this subclause apply in lieu of 
                                subclause (I), the taxpayer's net 
                                operating loss for any taxable year 
                                beginning in 2010 or 2011.
                            ``(iii) Election.--Any election under this 
                        subparagraph shall be made in such manner as 
                        may be prescribed by the Secretary, and shall 
                        be made by the due date (including extension of 
                        time) for filing the taxpayer's return for the 
                        taxable year of the net operating loss. Any 
                        such election, once made, shall be irrevocable. 
                        Any election under this subparagraph may be 
                        made only with respect to 2 taxable years.''.
    (b) Anti-Abuse Rules.--The Secretary of Treasury or the Secretary's 
designee shall prescribe such rules as are necessary to prevent the 
abuse of the purposes of the amendments made by this section, including 
anti-stuffing rules, anti-churning rules (including rules relating to 
sale-leasebacks), and rules similar to the rules under section 1091 of 
the Internal Revenue Code of 1986 relating to losses from wash sales.
    (c) Effective Date.--
            (1) In general.--Except as otherwise provided in this 
        subsection, the amendments made by this section shall apply to 
        net operating losses arising in taxable years ending after 
        December 31, 2009.
            (2) Transitional rule.--In the case of a net operating loss 
        for a taxable year ending before the date of the enactment of 
        this Act--
                    (A) any election made under section 172(b)(3) of 
                the Internal Revenue Code of 1986 with respect to such 
                loss may (notwithstanding such section) be revoked 
                before the applicable date, and
                    (B) any application under section 6411(a) of such 
                Code with respect to such loss shall be treated as 
                timely filed if filed before the applicable date.
        For purposes of this paragraph, the term ``applicable date'' 
        means the date which is 60 days after the date of the enactment 
        of this Act.

SEC. 3. PERMANENT INCREASE IN LIMITATIONS ON EXPENSING OF CERTAIN 
              DEPRECIABLE BUSINESS ASSETS; EXPENSING OF CERTAIN REAL 
              PROPERTY.

    (a) In General.--Subsection (b) of section 179 of the Internal 
Revenue Code of 1986 (relating to limitations) is amended--
            (1) by striking ``$25,000'' and all that follows in 
        paragraph (1) and inserting ``$250,000.'',
            (2) by striking ``$200,000'' and all that follows in 
        paragraph (2) and inserting ``$800,000'',
            (3) by striking ``after 2007 and before 2011, the $120,000 
        and $500,000'' in paragraph (5)(A) and inserting ``after 2010, 
        the $250,000 and the $800,000'',
            (4) by striking ``2006'' in paragraph (5)(A)(ii) and 
        inserting ``2009'', and
            (5) by striking paragraph (7).
    (b) Permanent Expensing of Computer Software; Expensing for Certain 
Real Property.--Paragraph (1) of section 179(d) of the Internal Revenue 
Code of 1986 (defining section 179 property) is amended to read as 
follows:
            ``(1) Section 179 property.--For purposes of this section, 
        the term `section 179 property' means property acquired by 
        purchase for use in the active conduct of a trade or business--
                    ``(A) which--
                            ``(i) is--
                                    ``(I) tangible property (to which 
                                section 168 applies), or
                                    ``(II) computer software (as 
                                defined in section 197(e)(3)(B)) which 
                                is described in section 
                                197(e)(3)(A)(i), to which section 167 
                                applies, and which is placed in service 
                                in a taxable year beginning after 2002, 
                                and
                            ``(ii) is section 1245 property (as defined 
                        in section 1245(a)(3)), or
                    ``(B) which is section 1250 property (as defined by 
                section 1250(c)).
        Such term shall not include any property described in section 
        50(b) and shall not include air conditioning or heating 
        units.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2009.

SEC. 4. INCREASE IN AMOUNT ALLOWED AS DEDUCTION FOR START-UP 
              EXPENDITURES.

    (a) In General.--Subsection (b) of section 195 of the Internal 
Revenue Code of 1986 is amended by adding at the end the following new 
paragraph:
            ``(3) Special rule for taxable years beginning in 2010, 
        2011, or 2012.--In the case of a taxable year beginning in 
        2010, 2011, or 2012, paragraph (1)(A)(ii) shall be applied by 
        substituting `$20,000' for `$5,000'.''.
    (b) Effective Date.--The amendment made by this section shall apply 
to amounts paid or incurred in taxable years beginning after December 
31, 2009.