I 

116TH CONGRESS 

1ST SESSION H. R. 4805 

To amend the Internal Revenue Code of 1986 to provide an exclusion from 

gross income for interest on certain small business loans. 

IN THE HOUSE OF REPRESENTATIVES 

OCTOBER 23, 2019 

Mr. KIM (for himself, Mr. BURCHETT, and Ms. KENDRA S. HORN of Oklahoma) 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 

an exclusion from gross income for interest on certain 

small business loans. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Access Business Credit 

5 Act of 2019’’ or as the ‘‘ABC Act of 2019’’. 


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1 SEC. 2. EXCLUSION OF INTEREST ON CERTAIN SMALL BUSI2 NESS LOANS. 

3 (a) IN GENERAL.—Part III of subchapter B of chap4 ter 1 of the Internal Revenue Code of 1986 is amended 

5 by inserting after section 139G the following new section: 

6 ‘‘SEC. 139H. INTEREST ON CERTAIN SMALL BUSINESS 

7 LOANS. 

8 ‘‘(a) IN GENERAL.—In the case of a bank described 

9 in subsection (c), gross income shall not include qualified 

10 interest received from a small business during the taxable 

11 year. 

12 ‘‘(b) QUALIFIED INTEREST.—The term ‘qualified in13 terest’ means, with respect to a small business, interest 

14 on indebtedness of not more than $5,000,000— 

15 ‘‘(1) secured by land situated in the United 

16 States that is used or held by the small business in 

17 connection with the active conduct of a farming 

18 business, or 

19 ‘‘(2) incurred in the ordinary course of the 

20 trade or business of the small business. 

21 ‘‘(c) BANK DESCRIBED.— 

22 ‘‘(1) IN GENERAL.—A bank is described in this 

23 subsection if the bank has less than $50 billion in 

24 assets at the close of the preceding taxable year. 

25 ‘‘(2) BANK DEFINED.—For purposes of this 

26 subsection— 


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1 ‘‘(A) IN GENERAL.—The term ‘bank’ 

2 means— 

3 ‘‘(i) any financial institution described 

4 in section 581 or 591, and 

5 ‘‘(ii) a corporation which, under the 

6 laws of the State of its incorporation, is 

7 subject to supervision and examination by 

8 the Commissioner of Banking or other offi9 cer of such State in charge of the adminis10 tration of the banking laws of such State. 

11 ‘‘(B) HOLDING COMPANY.—The term 

12 ‘bank’ includes— 

13 ‘‘(i) any bank holding company (with14 in the meaning of section 2(a) of the Bank 

15 Holding Company Act of 1956), and 

16 ‘‘(ii) any subsidiary of a financial in17 stitution described in section 581 or 591 or 

18 of any bank holding company if such sub19 sidiary is predominantly engaged (directly 

20 or indirectly) in the active conduct of a 

21 banking, financing, or similar business. 

22 ‘‘(d) SMALL BUSINESS.—The term ‘small business’ 

23 means a small business concern as defined under section 

24 3 of the Small Business Act (15 U.S.C. 632). 


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1 ‘‘(e) FARMING BUSINESS.—The term ‘farming busi2 ness’ has the meaning given such term by section 

3 263A(e)(4). 

4 ‘‘(f) TERMINATION.—This section shall not apply to 

5 interest received after December 31, 2025.’’. 

6 (b) CLERICAL AMENDMENT.—The table of sections 

7 for part III of subchapter B of chapter 1 of such Code 

8 is amended by inserting after the item relating to section 

9 139G the following new item: 

‘‘Sec. 139H. Interest on certain small business loans.’’. 

10 (c) REPORT TO CONGRESS.—Not later than Decem11 ber 31, 2024, the Commissioner of Internal Revenue, after 

12 consultation with the Federal reserve banks, shall submit 

13 to Congress a written report providing the recommenda14 tion of the Commissioner regarding whether the exclusion 

15 provided under section 139H of the Internal Revenue 

16 Code of 1986 (as added by this section) should be ex17 tended or should be allowed to terminate and the reasons 

18 for such recommendation. 

19 (d) EFFECTIVE DATE.—The amendments made by 

20 this section shall apply to interest received after December 

21 31, 2020, in taxable years ending after such date. 

Æ 


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