I 

110TH CONGRESS 

1ST SESSION H. R. 2133 

To provide support for small business concerns, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

MAY 3, 2007 

Mr. ALLEN (for himself, Mr. MCHUGH, Mr. PATRICK J. MURPHY of Pennsylvania, and Ms. EDDIE BERNICE JOHNSON of Texas) introduced the following bill; which was referred to the Committee on Ways and Means, 

and in addition to the Committees on Small Business and Science and 

Technology, 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 provide support for small business concerns, 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 referred to as the ‘‘Small Business 

5 Investment and Promotion Act of 2007’’. 


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1 SEC. 2. TEMPORARY CREDIT AGAINST INCOME TAX FOR 

2 SMALL BUSINESSES, FARMERS, AND FISHER3 MEN TO OFFSET HIGH FUEL COSTS. 

4 (a) IN GENERAL.—Subpart D of part IV of sub5 chapter A of chapter 1 of the Internal Revenue Code of 

6 1986 (relating to business-related credits) is amended by 

7 inserting after section 45N the following new section: 

8 ‘‘SEC. 45O. TEMPORARY CREDIT FOR SMALL BUSINESSES, 

9 FARMERS, AND FISHERMEN TO OFFSET HIGH 

10 FUEL COSTS. 

11 ‘‘(a) ALLOWANCE OF CREDIT.—In the case of an eli12 gible taxpayer, the excessive fuel cost credit determined 

13 under this section is an amount equal to the excessive fuel 

14 cost paid or incurred by the taxpayer during the taxable 

15 year for any creditable fuel used in any trade or business 

16 of the taxpayer. 

17 ‘‘(b) EXCESSIVE FUEL COST.—For purposes of this 

18 section— 

19 ‘‘(1) IN GENERAL.—The term ‘excessive fuel 

20 cost’ means, with respect to any creditable fuel, the 

21 excess (if any) of— 

22 ‘‘(A) the amount paid or incurred by the 

23 taxpayer for such fuel, over 

24 ‘‘(B) the adjusted base price for such fuel. 

25 ‘‘(2) ADJUSTED BASE PRICE.— 


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1 ‘‘(A) IN GENERAL.—The term ‘adjusted 

2 base price’ means, with respect to any cred3 itable fuel, the amount determined by the Sec4 retary to be the applicable Labor Day 2004 

5 price for such fuel adjusted for inflation. 

6 ‘‘(B) APPLICABLE PRICE.—The applicable 

7 Labor Day 2004 price for any fuel is the aver8 age price for such fuel for the region in which 

9 the taxpayer purchased such fuel (as deter10 mined using data of the Energy Information 

11 Agency of the Department of Energy). 

12 ‘‘(C) INFLATION ADJUSTMENT.—The infla13 tion adjustment shall be determined under the 

14 principles of section 1(f); except that, the Sec15 retary shall use estimates of the monthly Con16 sumer Price Index (as defined in such section) 

17 where possible to more closely reflect current 

18 inflation. 

19 ‘‘(c) ELIGIBLE TAXPAYER.—For purposes of this sec20 tion— 

21 ‘‘(1) IN GENERAL.—The term ‘eligible taxpayer’ 

22 means any person engaged in a trade or business 

23 if— 

24 ‘‘(A) such trade or business is— 


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1 ‘‘(i) a farming business (as defined in 

2 section 263A(e)(4)), or 

3 ‘‘(ii) commercial fishing (as defined in 

4 section 3 of the Magnuson-Stevens Fishery 

5 Conservation and Management Act (16 

6 U.S.C. 1802)), or 

7 ‘‘(B) such person is a small business. 

8 ‘‘(2) SMALL BUSINESS.—The term ‘small busi9 ness’ means a trade or business that employs an an10 nual average of not more than 50 employees. 

11 ‘‘(3) CREDITABLE FUEL.—The term ‘creditable 

12 fuel’ means— 

13 ‘‘(A) gasoline, 

14 ‘‘(B) diesel fuel, 

15 ‘‘(C) heating oil, and 

16 ‘‘(D) natural gas. 

17 ‘‘(d) ADJUSTMENT OF STANDARD MILEAGE RATE.— 

18 An eligible taxpayer may elect, in lieu of the credit under 

19 this section, a standard mileage allowance under section 

20 162 equal to 60 cents for each mile traveled during the 

21 period described in subsection (e). The Secretary shall 

22 modify the standard mileage rate under the preceding sen23 tence to the extent that 60 cents does not accurately re24 flect that value of the credit under this section. 


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1 ‘‘(e) APPLICATION OF SECTION.—This section shall 

2 apply to fuels purchased during the 2-year period begin3 ning on the date of the enactment of this section.’’. 

4 (b) CREDIT TO BE PART OF GENERAL BUSINESS

5 CREDIT.—Subsection (b) of section 38 of such Code is 

6 amended by striking ‘‘plus’’ at the end of paragraph (30), 

7 by striking the period at the end of paragraph (31) and 

8 inserting ‘‘, plus’’, and by adding at the end the following 

9 new paragraph: 

10 ‘‘(32) in the case of an eligible taxpayer (as de11 fined in section 45O(c)), the excessive fuel cost cred12 it determined under section 45O(a).’’. 

13 (c) CLERICAL AMENDMENT.—The table of sections 

14 for subpart D of part IV of subchapter A of chapter 1 

15 of such Code is amended by inserting after the item relat16 ing to section 45N the following new item: 

‘‘Sec. 45O. Temporary credit for small businesses, farmers, and fishermen to 

offset high fuel costs’’. 

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

18 this section shall apply to taxable years ending after the 

19 date of the enactment of this Act. 

20 SEC. 3. PERMANENT EXTENSION OF RESEARCH CREDIT. 

21 (a) IN GENERAL.—Section 41 of the Internal Rev22 enue Code of 1986 (relating to credit for increasing re23 search activities) is amended by striking subsection (h). 


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1 (b) CONFORMING AMENDMENT.—Paragraph (1) of 

2 section 45C(b) of such Code is amended by striking sub3 paragraph (D). 

4 (c) EFFECTIVE DATE.—The amendments made by 

5 this section shall apply to amounts paid or incurred after 

6 the date of the enactment of this Act. 

7 SEC. 4. TREATMENT OF QUALIFIED RESTAURANT PROP8 ERTY, QUALIFIED RETAIL IMPROVEMENT 

9 PROPERTY, AND CERTAIN SYSTEMS IN10 STALLED IN NONRESIDENTIAL BUILDINGS AS 

11 15-YEAR PROPERTY FOR PURPOSES OF DE12 PRECIATION DEDUCTION. 

13 (a) QUALIFIED RESTAURANT PROPERTY.—Clause 

14 (v) of section 168(e)(3)(E) of the Internal Revenue Code 

15 of 1986 (defining 15-year property) is amended by strik16 ing ‘‘placed in service before January 1, 2008’’. 

17 (b) QUALIFIED RETAIL IMPROVEMENT PROPERTY

18 AND CERTAIN SYSTEMS INSTALLED IN NONRESIDENTIAL

19 BUILDINGS.— 

20 (1) 15-YEAR RECOVERY PERIOD.—Subpara21 graph (E) of section 168(e)(3) of the Internal Rev22 enue Code of 1986 (relating to 15-year property) is 

23 amended by striking ‘‘and’’ at the end of clause 

24 (vii), by striking the period at the end of clause (viii) 


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1 and inserting a comma, and by adding at the end 

2 the following new clauses: 

3 ‘‘(ix) any qualified retail improvement 

4 property, and 

5 ‘‘(x) any property— 

6 ‘‘(I) which is part of a heating, 

7 ventilation, air conditioning, or com8 mercial refrigeration system, 

9 ‘‘(II) which is installed on or in 

10 a building which is nonresidential real 

11 property, and 

12 ‘‘(III) the original use of which 

13 commences with the taxpayer.’’. 

14 (2) DEFINITION.—Section 168(e) of such Code 

15 (relating to classification of property) is amended by 

16 adding at the end the following new paragraph: 

17 ‘‘(8) QUALIFIED RETAIL IMPROVEMENT PROP18 ERTY.— 

19 ‘‘(A) IN GENERAL.—The term ‘qualified 

20 retail improvement property’ means any im21 provement to an interior portion of a building 

22 which is nonresidential real property if— 

23 ‘‘(i) such portion is open to the gen24 eral public, 


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1 ‘‘(ii) such portion is used by a trade 

2 or business that sells tangible personal 

3 property or services to the general public, 

4 ‘‘(iii) such trade or business employs 

5 an annual average of not more than 50 

6 employees, and 

7 ‘‘(iv) such improvement is placed in 

8 service more than 3 years after the date 

9 the building was first placed in service. 

10 ‘‘(B) CERTAIN IMPROVEMENTS NOT IN11 CLUDED.—Such term shall not include any im12 provement for which the expenditure is attrib13 utable to— 

14 ‘‘(i) the enlargement of the building, 

15 ‘‘(ii) any elevator or escalator, or 

16 ‘‘(iii) the internal structural frame17 work of the building.’’. 

18 (3) REQUIREMENT TO USE STRAIGHT LINE

19 METHOD.—Paragraph (3) of section 168(b) of such 

20 Code (relating to applicable depreciation method) is 

21 amended by adding at the end the following new 

22 subparagraphs: 

23 ‘‘(I) Qualified retail improvement property 

24 described in subsection (e)(8). 


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1 ‘‘(J) Property described in subsection 

2 (e)(3)(E)(x).’’. 

3 (4) ALTERNATIVE SYSTEM.—The table con4 tained in section 168(g)(3)(B) of such Code (relat5 ing to special rule for certain property assigned to 

6 classes) is amended by inserting after the item relat7 ing to subparagraph (E)(viii) the following new 

8 items: 

‘‘(E)(ix) ................................................................................................ 39

(E)(x) ................................................................................................... 25’’. 

9 (c) EFFECTIVE DATE.—The amendments made by 

10 this section shall apply to property placed in service after 

11 the date of the enactment of this Act. 

12 SEC. 5. AUTHORIZATIONS. 

13 (a) ADVANCED TECHNOLOGY PROGRAM.—There are 

14 authorized to be appropriated to the Secretary of Com15 merce for the Advanced Technology Program under sec16 tion 28 of the National Institute of Standards and Tech17 nology Act (15 U.S.C. 278n) $145,000,000 for fiscal year 

18 2008 and $150,000,000 for fiscal year 2009. 

19 (b) SCORE.—There are authorized to be appro20 priated for the Service Corps of Retired Executives 

21 (SCORE) under section 8(b)(1)(B) of the Small Business 

22 Act (15 U.S.C. 637(b)(1)(B) $8,000,000 for fiscal year 

23 2008 and $8,500,000 for fiscal year 2009. 


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1 (c) SMALL BUSINESS DEVELOPMENT CENTERS.— 

2 There are authorized to be appropriated for small business 

3 development centers under section 21 of the Small Busi4 ness Act (15 U.S.C. 648) $140,000,000 fiscal year 2008 

5 and $142,500,000 for fiscal year 2009. 

6 (d) MANUFACTURING EXTENSION PARTNERSHIP.— 

7 There are authorized to be appropriated to the Secretary 

8 of Commerce for the Manufacturing Extension Partner9 ship program under sections 25 and 26 of the National 

10 Institute of Standards and Technology Act (15 U.S.C. 

11 278k and 278l) $120,000,000 for fiscal year 2008 and 

12 $125,000,000 for fiscal year 2009. 

13 (e) WOMEN’S BUSINESS CENTERS.—There are au14 thorized to be appropriated for the Women’s Business 

15 Center Program under section 29 of the Small Business 

16 Act (15 U.S.C. 656) $15,500,000 for fiscal year 2008 and 

17 $16,000,000 for fiscal year 2009. 

18 SEC. 6. SENSE OF CONGRESS ON FUNDING FOR SMALL 

19 BUSINESS PROGRAMS. 

20 (a) FUNDING FOR 7(a) LOAN PROGRAM.—It is the 

21 sense of Congress that Congress should appropriate 

22 $79,000,000 for offsetting the cost of borrowers partici23 pating in the loan program under section 7(a) of the Small 

24 Business Act (15 U.S.C. 636(a)). 


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1 (b) FUNDING FOR OTHER PROGRAMS.—It is the 

2 sense of Congress that Congress should appropriate funds 

3 for the Advanced Technology Program, the Service Corps 

4 of Retired Executives, the Small Business Development 

5 Centers, the Manufacturing Extension Partnership, and 

6 the Women’s Business Center Program at the levels au7 thorized under section 4 of this Act. 

8 SEC. 7. SMALL BUSINESS CONTRACTING GOAL. 

9 (a) APPLICATION TO CONTRACTS PERFORMED OVER10 SEAS.—Section 15(g)(1) of the Small Business Act (15 

11 U.S.C.) is amended in the second sentence by inserting 

12 ‘‘(including awards for contracts performed outside the 

13 United States)’’ after ‘‘all prime contract awards’’. 

14 (b) EFFECTIVE DATE.—The amendment made by 

15 subsection (a) shall apply with respect to fiscal years be16 ginning after September 30, 2007. 

Æ 


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