Small Business Regulatory Cost Relief Act of 1993

Summary: Small Business Regulatory Cost Relief Act of 1993 - Amends the Internal Revenue Code to replace the small business tax credit for expenditures to provide access to disabled individuals with the small business tax credit for regulatory costs.  Makes such credit 50 percent of qualified regulatory costs for a taxable year as exceed $250. Declares that such costs include eligible access expenditures for the disabled.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Small Business Regulatory Cost 
Relief Act of 1993''.

SEC. 2. TAX CREDIT FOR CERTAIN REGULATORY COSTS.

    (a) General Rule.--Section 44 of the Internal Revenue Code of 1986 
is amended to read as follows:

``SEC. 44. SMALL BUSINESS REGULATORY COSTS.

    ``(a) General Rule.--For purposes of section 38, in the case of a 
qualified small business, the regulatory cost credit determined under 
this section for any taxable year is 50 percent of so much of the 
qualified regulatory costs for the taxable year as exceed $250.
    ``(b) Qualified Small Business.--For purposes of this section, the 
term `qualified small business' means any person if--
            ``(1)(A) such person is a small business concern as defined 
        in section 3(a) of the Small Business Act and the regulations 
        thereunder, or
            ``(B) a certification that such person is a small business 
        concern under section 8(b)(6) of the Small Business Act (15 
        U.S.C. 637(b)(6)) is in effect as of the close of the taxable 
        year, and
            ``(2) such person elects the application of this section 
        for the taxable year.
    ``(c) Qualified Regulatory Costs.--For purposes of this section--
            ``(1) In general.--The term `qualified regulatory costs' 
        means the sum of the following amounts paid or incurred during 
        the taxable year:
                    ``(A) The federally required nonproductive 
                expenditures.
                    ``(B) The product approval costs.
            ``(2) Federally required nonproductive expenditures.--
                    ``(A) In general.--The term `federally required 
                nonproductive expenditure' means any amount which is 
                paid or incurred by the taxpayer in connection with any 
                plant or other property operated by the taxpayer and 
                which--
                            ``(i) is certified by the Federal 
                        certifying authority to the Secretary as being 
                        necessary or appropriate for the operation of 
                        such plant or property to be in compliance 
                        with--
                                    ``(I) the requirements of any 
                                regulation issued pursuant to any 
                                Federal law, or
                                    ``(II) the requirements of any 
                                regulation issued pursuant to a State 
                                law which was adopted to meet a 
                                requirement of such Federal law;
                            ``(ii) does not significantly--
                                    ``(I) increase the output or 
                                capacity, extend the useful life, or 
                                reduce the total operating costs of any 
                                property, or
                                    ``(II) alter the nature of any 
                                manufacturing or production process, 
                                and
                            ``(iii) cannot reasonably be expected to be 
                        recovered over its useful life by reason of 
                        profits derived through the recovery of wastes 
                        or otherwise.
                    ``(B) Expenses with respect to new property not 
                eligible.--The term `federally required nonproductive 
                expenditure' does not include any amount paid or 
                incurred in connection with any property first placed 
                in service after the later of--
                            ``(i) the date on which the regulation 
                        became final, or
                            ``(ii) the date of the enactment of the 
                        Small Business Regulatory Cost Relief Act of 
                        1993.
                    ``(C) Federal certifying authority.--The term 
                `Federal certifying authority' means the head of the 
                Federal agency which has the primary jurisdiction over 
                the Federal law referred to in subparagraph (A)(i)(I).
            ``(3) Product approval costs.--The term `product approval 
        costs' means amounts paid or incurred by the taxpayer in 
        connection with determining the safety or effectiveness of any 
        product or service in order to comply with the requirements of 
        any Federal law.
    ``(d) Special Rules.--
            ``(1) Treatment of expenditures to provide access to 
        disabled individuals.--For purposes of this section, the term 
        `qualified regulatory costs' includes any eligible access 
        expenditures as defined in this section as in effect on the day 
        before the date of the enactment of the Small Business 
        Regulatory Cost Relief Act of 1993.
            ``(2) Denial of double benefit.--If a credit is determined 
        under this section with respect to any qualified regulatory 
        cost--
                    ``(A) no deduction or credit shall be allowed under 
                any other provision of this chapter for the credit 
                portion of such cost, and
                    ``(B) no increase in the adjusted basis of any 
                property shall result from the credit portion of such 
                cost.
        For purposes of the preceding sentence, the term `credit 
        portion' means, with respect to any qualified regulatory cost 
        for any taxable year, the amount which bears the same ratio to 
        the credit determined under this section for such taxable year 
        as the amount of such cost bears to the entire amount of 
        qualified regulatory costs for such taxable year.''
    (b) Credit Part of General Business Credit.--Paragraph (7) of 
section 38(b) of such Code is amended to read as follows:
            ``(7) in the case of a qualified small business (as defined 
        in section 44(b)), the regulatory cost credit determined under 
        section 44(a), plus.''
    (c) Conforming Amendment.--The paragraph of section 39(d) of such 
Code which relates to the credit under section 44 is amended by adding 
at the end thereof the following new sentence: ``No portion of the 
unused business credit for any taxable year which is attributable to 
the additional credit determined under section 44 by reason of the 
Small Business Regulatory Cost Relief Act of 1993 may be carried back 
to taxable year ending before the date of the enactment of such Act.''
    (d) Clerical Amendment.--The table of sections for subpart D of 
part IV of subchapter A of chapter 1 of such Code is amended by 
striking the item relating to section 44 and inserting the following:

                              ``Sec. 44. Small business regulatory 
                                        costs.''
    (e) Effective Date.--The amendments made by this section shall 
apply to amounts paid or incurred after the date of the enactment of 
this Act in taxable years ending after such date of enactment.