I 

112TH CONGRESS 

1ST SESSION H. R. 3571 

To direct the Commissioner of Internal Revenue to establish a selfemployment tax initiative grant program, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

DECEMBER 6, 2011 

Ms. CHU introduced the following bill; which was referred to the Committee 

on Ways and Means, and in addition to the Committee on Financial Services, for a period to be subsequently determined by the Speaker, in each 

case for consideration of such provisions as fall within the jurisdiction of 

the committee concerned 

A BILL 

To direct the Commissioner of Internal Revenue to establish 

a self-employment tax initiative grant program, and for 

other purposes. 

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 ‘‘Entrepreneur Startup 

5 Growth Act of 2011’’. 


srobinson on DSK4SPTVN1PROD with BILLS
2 

•HR 3571 IH

1 SEC. 2. SELF-EMPLOYMENT TAX INITIATIVE GRANT PRO2 GRAM. 

3 (a) ESTABLISHMENT.—Not later than 90 days after 

4 the date of enactment of this Act, the Commissioner of 

5 Internal Revenue, in consultation with the Administrator 

6 of the Small Business Administration, shall establish a 

7 self-employment tax initiative grant program (in this sec8 tion referred to as the ‘‘program’’) to provide to covered 

9 individuals affordable tax preparation and business devel10 opment assistance. 

11 (b) GRANT AUTHORITY AND ELIGIBLE ENTITIES.— 

12 Under the program, the Commissioner may make a grant 

13 to the following: 

14 (1) A community-based organization. 

15 (2) A microlender. 

16 (3) A nonprofit organization. 

17 (4) An institution of higher education. 

18 (5) A local government. 

19 (6) A consortium of entities described in any of 

20 paragraphs (1) through (5). 

21 (c) GRANT USES.—A grant made under the program 

22 shall be used for the following: 

23 (1) Providing affordable tax preparation assist24 ance to a covered individual. 

25 (2) Providing business development assistance 

26 to a covered individual, including individual counVerDate Mar 15 2010 21:12 Dec 07, 2011 Jkt 019200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H3571.IH H3571

srobinson on DSK4SPTVN1PROD with BILLS
3 

•HR 3571 IH

1 seling, classroom training, or other activities de2 signed to assist a covered individual to improve the 

3 profitability, efficiency, or readiness for financing of 

4 the individual’s business. 

5 (3) Conducting culturally and linguistically ap6 propriate outreach to underserved communities in 

7 the area in which assistance described in paragraph 

8 (1) or (2) is provided. 

9 (d) APPLICATIONS FOR GRANTS.—To be eligible for 

10 a grant under the program an entity specified in sub11 section (b) shall submit to the Commissioner an applica12 tion at such time, in such form, and containing such infor13 mation as the Commissioner may require, but which, at 

14 a minimum, shall— 

15 (1) include the plan of the entity to provide as16 sistance and outreach described in subsection (c) 

17 throughout each year; and 

18 (2) demonstrate that the entity has experience 

19 providing the assistance described in paragraph (1) 

20 and the assistance described in paragraph (2) of 

21 subsection (c). 

22 (e) GRANT AMOUNT.—A grant made under the pro23 gram may not be in an amount that exceeds $75,000. 

24 (f) GAO STUDY AND REPORT.— 


srobinson on DSK4SPTVN1PROD with BILLS
4 

•HR 3571 IH

1 (1) STUDY.—The Comptroller General of the 

2 United States shall conduct a study on the program, 

3 including program outcomes. 

4 (2) REPORT.—Not later than 3 years after the 

5 date on which the program is established, the Comp6 troller General shall submit to Congress a report on 

7 the results of the study conducted under paragraph 

8 (1), which shall include the following: 

9 (A) An analysis of the impact of the pro10 gram on covered individuals and the businesses 

11 of such individuals. 

12 (B) An identification of the best practices 

13 of grant recipients with respect to activities car14 ried out with grant funds. 

15 (C) Recommendations for improving the 

16 program. 

17 (g) AUTHORIZATION OF APPROPRIATIONS.— 

18 (1) IN GENERAL.—There is authorized to be 

19 appropriated to carry out the program $1,500,000 

20 for each of fiscal years 2012 through 2016. 

21 (2) ADMINISTRATIVE COSTS.—Of the funds 

22 made available to carry out the program each fiscal 

23 year, the Commissioner may use not more than 10 

24 percent for the administrative costs of the program. 


srobinson on DSK4SPTVN1PROD with BILLS
5 

•HR 3571 IH

1 (h) DEFINITIONS.—In this section, the following defi2 nitions apply: 

3 (1) COVERED INDIVIDUAL.—The term ‘‘covered 

4 individual’’ means, with respect to any taxable year, 

5 an individual who— 

6 (A) is engaged in an active trade or busi7 ness as a sole proprietor during such taxable 

8 year; 

9 (B) is required to report income or loss on 

10 Schedule C to Form 1040 for such taxable 

11 year; and 

12 (C) has modified adjusted gross income of 

13 $50,000 or less for the preceding taxable year. 

14 (2) INSTITUTION OF HIGHER EDUCATION.—The 

15 term ‘‘institution of higher education’’ has the 

16 meaning given that term in section 102 of the High17 er Education Act of 1965 (20 U.S.C. 1002). 

18 (3) MICROLENDER.—The term ‘‘microlender’’ 

19 means a private organization that provides— 

20 (A) loans of $50,000 or less to entre21 preneurs, small business owners, and nonprofit 

22 child care providers; and 

23 (B) marketing, management, and technical 

24 assistance to loan recipients and potential loan 

25 recipients. 


srobinson on DSK4SPTVN1PROD with BILLS
6 

•HR 3571 IH

1 (4) MODIFIED ADJUSTED GROSS INCOME.—The 

2 term ‘‘modified adjusted gross income’’ means the 

3 adjusted gross income (as defined in section 62 of 

4 the Internal Revenue Code of 1986) of the taxpayer 

5 for a taxable year increased by any amount excluded 

6 from gross income under section 911, 931, or 933 

7 of such Code. 

Æ 


srobinson on DSK4SPTVN1PROD with BILLS