To amend the Internal Revenue Code of 1986 to encourage the creation and growth of small business and reduce the cost of complying with the tax requirements.

Summary: Small Business Jobs and Tax Relief Act of 2010 - Amends the Internal Revenue Code to: (1) extend through 2011 bonus depreciation for certain depreciable business property; (2) extend through 2010 the election to accelerate the alternative minimum tax (AMT) and research tax credits in lieu of bonus depreciation; (3) increase in 2010, 2011, and 2012, the tax deduction for business start-up expenditures; (4) remove restrictions on the tax deduction for employee use of cellular telephones; (5) revise 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; and (6) allow a 100% exclusion from gross income in 2010 of gain from the sale of qualified small business stock.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Small Business Jobs and Tax Relief 
Act of 2010''.

SEC. 2. EXTEND TEMPORARY BONUS DEPRECIATION FOR CERTAIN PROPERTY.

    (a) Extension of Special Allowance.--
            (1) In general.--Paragraph (2) of section 168(k) of the 
        Internal Revenue Code of 1986 is amended--
                    (A) by striking ``January 1, 2011'' and inserting 
                ``January 1, 2012'', and
                    (B) by striking ``January 1, 2010'' each place it 
                appears and inserting ``January 1, 2011''.
            (2) Conforming amendments.--
                    (A) The heading for subsection (k) of section 168 
                of such Code is amended by striking ``January 1, 2010'' 
                and inserting ``January 1, 2011''.
                    (B) The heading for clause (ii) of section 
                168(k)(2)(B) of such Code is amended by striking ``pre-
                january 1, 2010'' and inserting ``pre-january 1, 
                2011''.
                    (C) Subparagraph (B) of section 168(l)(5) of such 
                Code is amended by striking ``January 1, 2010'' and 
                inserting ``January 1, 2011''.
                    (D) Subparagraph (C) of section 168(n)(2) of such 
                Code is amended by striking ``January 1, 2010'' and 
                inserting ``January 1, 2011''.
                    (E) Subparagraph (B) of section 1400N(d)(3) of such 
                Code is amended by striking ``January 1, 2010'' and 
                inserting ``January 1, 2011''.
    (b) Extension of Election To Accelerate the AMT and Research 
Credits in Lieu of Bonus Depreciation.--Section 168(k)(4) of such Code 
(relating to election to accelerate the AMT and research credits in 
lieu of bonus depreciation) is amended--
            (1) by striking ``2009'' and inserting ``2010'' in 
        subparagraph (D)(iii) (as redesignated by subsection (a)(3)), 
        and
            (2) by adding at the end the following new subparagraph:
                    ``(I) Special rules for extension property.--
                            ``(i) Taxpayers previously electing 
                        acceleration.--In the case of a taxpayer who 
                        made the election under subparagraph (A) for 
                        its first taxable year ending after March 31, 
                        2008--
                                    ``(I) the taxpayer may elect not to 
                                have this paragraph apply to extension 
                                property, but
                                    ``(II) if the taxpayer does not 
                                make the election under subclause (I), 
                                in applying this paragraph to the 
                                taxpayer a separate bonus depreciation 
                                amount, maximum amount, and maximum 
                                increase amount shall be computed and 
                                applied to eligible qualified property 
                                which is extension property and to 
                                eligible qualified property which is 
                                not extension property.
                            ``(ii) Taxpayers not previously electing 
                        acceleration.--In the case of a taxpayer who 
                        did not make the election under subparagraph 
                        (A) for its first taxable year ending after 
                        March 31, 2008--
                                    ``(I) the taxpayer may elect to 
                                have this paragraph apply to its first 
                                taxable year ending after December 31, 
                                2009, and each subsequent taxable year, 
                                and
                                    ``(II) if the taxpayer makes the 
                                election under subclause (I), this 
                                paragraph shall only apply to eligible 
                                qualified property which is extension 
                                property.
                            ``(iii) Extension property.--For purposes 
                        of this subparagraph, the term `extension 
                        property' means property which is eligible 
                        qualified property solely by reason of the 
                        extension of the application of the special 
                        allowance under paragraph (1) pursuant to the 
                        amendments made by section 3(a) of the Small 
                        Business Jobs and Tax Relief Act of 2010 (and 
                        the application of such extension to this 
                        paragraph pursuant to the amendment made by 
                        section 3(b)(1) of such Act).
    ``(b) Limitation.--The amount taken into account under subsection 
(a) shall not exceed $1,500 for each vehicle on which an idling 
reduction device is affixed.''.
    (c) Effective Dates.--The amendments made by this section shall 
apply to property placed in service after December 31, 2009, in taxable 
years ending after such date.

SEC. 3. 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:
            ``(3) Special rule for taxable years beginning in 2009, 
        2010, or 2011.--In the case of a taxable year beginning in 
        2010, 2011, or 2012, 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 amounts paid or incurred in taxable years beginning after the 
date of the enactment of this Act.

SEC. 4. REMOVAL OF CELLULAR TELEPHONES (OR SIMILAR TELECOMMUNICATIONS 
              EQUIPMENT) FROM LISTED PROPERTY.

    (a) In General.--Subparagraph (A) of section 280F(d)(4) of the 
Internal Revenue Code (defining listed property) is amended by 
inserting ``and'' at the end of clause (iv), by striking clause (v), 
and by redesignating clause (vi) as clause (v).
    (b) Effective Date.--The amendment made by subsection (a) shall 
apply to taxable years beginning after January 1, 2009.

SEC. 5. 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) of the 
Internal Revenue Code of 1986 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),
                                    ``(II) is secured by property used 
                                or held, directly or indirectly, by 
                                such small business investment company, 
                                and
                                    ``(III) 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) 
of such Code 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 taxable years beginning after the date of the enactment of 
this Act.

SEC. 6. TEMPORARY EXCLUSION OF 100 PERCENT OF GAIN ON CERTAIN SMALL 
              BUSINESS STOCK.

    (a) In General.--Subsection (a) of section 1202 of the Internal 
Revenue Code of 1986 (relating partial exclusion for gain from certain 
small business stock) is amended by adding at the end the following new 
paragraph:
            ``(4) 100 exclusion for stock acquired during 2010.--In the 
        case of qualified small business stock acquired during 2010--
                    ``(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 Amendment.--Paragraph (3) of section 1202 (a) of 
such Code is amended--
            (1) by striking ``and 2010'' in the heading, and
            (2) by striking ``January 1, 2011'' and inserting ``January 
        1, 2010''.
    (c) Effective Date.--The amendments made by this section shall 
apply to stock acquired after December 31, 2009.