II 

112TH CONGRESS 

1ST SESSION S. 1801 

To amend the Internal Revenue Code of 1986 to extend certain provisions 

of the Creating Small Business Jobs Act of 2010, and for other purposes. 

IN THE SENATE OF THE UNITED STATES 

NOVEMBER 3, 2011 

Ms. SNOWE introduced the following bill; which was read twice and referred 

to the Committee on Finance 

A BILL 

To amend the Internal Revenue Code of 1986 to extend 

certain provisions of the Creating Small Business Jobs 

Act of 2010, 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; ETC. 

4 (a) SHORT TITLE.—This Act may be cited as the 

5 ‘‘Small Business Jobs Tax Extenders Act of 2011’’. 

6 (b) AMENDMENT OF 1986 CODE.—Except as other7 wise expressly provided, whenever in this Act an amend8 ment or repeal is expressed in terms of an amendment 

9 to, or repeal of, a section or other provision, the reference 


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1 shall be considered to be made to a section or other provi2 sion of the Internal Revenue Code of 1986. 

3 (c) TABLE OF CONTENTS.—The table of contents of 

4 this Act is as follows: 

Sec. 1. Short title; etc. 

Sec. 2. Findings. 

TITLE I—EXTENSION OF SMALL BUSINESS TAX RELIEF 

Sec. 101. Extension of temporary exclusion of 100 percent of gain on certain 

small business stock. 

Sec. 102. Extension of 5-year carryback of general business credits of eligible 

small businesses. 

Sec. 103. Extension of alternative minimum tax rules for general business credits of eligible small businesses. 

Sec. 104. Extension of temporary reduction in recognition period for built-in 

gains tax. 

Sec. 105. Extension of increased expensing limitations and treatment of certain 

real property as section 179 property. 

Sec. 106. Extension of bonus depreciation. 

Sec. 107. Extension of special rule for long-term contract accounting. 

Sec. 108. Extension of increased amount allowed as a deduction for start-up expenditures. 

Sec. 109. Extension of allowance of deduction for health insurance in computing self-employment taxes. 

TITLE II—OFFSETTING PROVISIONS 

Sec. 201. Expansion of affordability exception to individual mandate. 

5 SEC. 2. FINDINGS. 

6 Congress makes the following findings: 

7 (1) A vibrant and growing small business sector 

8 is critical to the recovery of the economy of the 

9 United States. 

10 (2) Small businesses represent 99.7 percent of 

11 all employer firms and generate approximately two12 thirds of net new jobs. 


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1 (3) Broadening the tax base and lowering statu2 tory rates through comprehensive tax reform is pref3 erable to short term tax rate extensions. 

4 (4) There is no consensus on Congressional 

5 passage and implementation of such reform at this 

6 time; it is therefore critical that tax relief for small 

7 businesses promulgated in the Small Business Jobs 

8 Act of 2010 be extended. 

9 TITLE I—EXTENSION OF SMALL 

10 BUSINESS TAX RELIEF 

11 SEC. 101. EXTENSION OF TEMPORARY EXCLUSION OF 100 

12 PERCENT OF GAIN ON CERTAIN SMALL BUSI13 NESS STOCK. 

14 (a) IN GENERAL.—Paragraph (4) of section 1202(a) 

15 is amended— 

16 (1) by striking ‘‘January 1, 2012’’ and insert17 ing ‘‘January 1, 2013’’, and 

18 (2) by striking ‘‘AND 2011’’ and inserting 

19 ‘‘2011, AND 2012’’ in the heading thereof. 

20 (b) EFFECTIVE DATE.—The amendments made by 

21 this section shall apply to stock acquired after December 

22 31, 2011. 


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1 SEC. 102. EXTENSION OF 5-YEAR CARRYBACK OF GENERAL 

2 BUSINESS CREDITS OF ELIGIBLE SMALL 

3 BUSINESSES. 

4 (a) IN GENERAL.—Subparagraph (A) of section 

5 39(a)(4) is amended by ‘‘or 2011’’ after ‘‘2010’’. 

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

7 this section shall apply to credits determined in taxable 

8 years beginning after December 31, 2010. 

9 SEC. 103. EXTENSION OF ALTERNATIVE MINIMUM TAX 

10 RULES FOR GENERAL BUSINESS CREDITS OF 

11 ELIGIBLE SMALL BUSINESSES. 

12 (a) IN GENERAL.—Subparagraph (A) of section 

13 38(c)(5) is amended by ‘‘or 2011’’ after ‘‘2010’’. 

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

15 this section shall apply to credits determined in taxable 

16 years beginning after December 31, 2010, and to 

17 carrybacks of such credits. 

18 SEC. 104. EXTENSION OF TEMPORARY REDUCTION IN REC19 OGNITION PERIOD FOR BUILT-IN GAINS TAX. 

20 (a) IN GENERAL.—Clause (ii) of section 

21 1374(d)(7)(B) is amended by inserting ‘‘or 2012,’’ after 

22 ‘‘2011’’. 

23 (b) CONFORMING AMENDMENT.—The heading for 

24 section 1372(d)(7)(B) is amended by striking ‘‘AND 2011’’ 

25 and inserting ‘‘2011, AND 2012’’. 


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

2 this section shall apply to taxable years beginning after 

3 December 31, 2011. 

4 SEC. 105. EXTENSION OF INCREASED EXPENSING LIMITA5 TIONS AND TREATMENT OF CERTAIN REAL 

6 PROPERTY AS SECTION 179 PROPERTY. 

7 (a) IN GENERAL.—Section 179(b) is amended— 

8 (1) by striking ‘‘2010 or 2011’’ each place it 

9 appears in paragraph (1)(B) and (2)(B) and insert10 ing ‘‘2010, 2011, or 2012’’, 

11 (2) by striking ‘‘2012’’ each place it appears in 

12 paragraph (1)(C) and (2)(C) and inserting ‘‘2013’’, 

13 and 

14 (3) by striking ‘‘2012’’ each place it appears in 

15 paragraph (1)(D) and (2)(D) and inserting ‘‘2013’’. 

16 (b) INFLATION ADJUSTMENT.—Subparagraph (A) of 

17 section 179(b)(6) is amended by striking ‘‘2012’’ and in18 serting ‘‘2013’’. 

19 (c) COMPUTER SOFTWARE.—Section 179(d)(2)(A)(ii) 

20 is amended by striking ‘‘2013’’ and inserting ‘‘2014’’. 

21 (d) ELECTION.—Section 179(c)(2) is amended by 

22 striking ‘‘2013’’ and inserting ‘‘2014’’. 

23 (e) SPECIAL RULES FOR TREATMENT OF QUALIFIED

24 REAL PROPERTY.—Section 179(f)(1) is amended by strik25 ing ‘‘2010 or 2011’’ and inserting ‘‘2010, 2011, or 2012’’. 


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1 (f) EFFECTIVE DATE.—The amendments made by 

2 this section shall apply to taxable years beginning after 

3 December 31, 2011. 

4 SEC. 106. EXTENSION OF BONUS DEPRECIATION. 

5 (a) IN GENERAL.—Paragraph (2) of section 168(k) 

6 is amended— 

7 (1) by striking ‘‘January 1, 2014’’ in subpara8 graph (A)(iv) and inserting ‘‘January 1, 2015’’, and 

9 (2) by striking ‘‘January 1, 2013’’ each place 

10 it appears and inserting ‘‘January 1, 2014’’. 

11 (b) 100 PERCENT EXPENSING.—Paragraph (5) of 

12 section 168(k) is amended— 

13 (1) by striking ‘‘January 1, 2013’’ and insert14 ing ‘‘January 1, 2014’’, and 

15 (2) by striking ‘‘January 1, 2012’’ each place 

16 it appears and inserting ‘‘January 1, 2013’’. 

17 (c) EXTENSION OF ELECTION TO ACCELERATE THE

18 AMT CREDIT IN LIEU OF BONUS DEPRECIATION.— 

19 (1) IN GENERAL.—Subclause (II) of section 

20 168(k)(4)(D)(iii) is amended by striking ‘‘2013’’ and 

21 inserting ‘‘2014’’. 

22 (2) ROUND 3 EXTENSION PROPERTY.—Para23 graph (4) of section 168(k) is amended by adding at 

24 the end the following new subparagraph: 


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1 ‘‘(J) SPECIAL RULES FOR ROUND 3 EX2 TENSION PROPERTY.— 

3 ‘‘(i) IN GENERAL.—In the case of 

4 round 3 extension property, this paragraph 

5 shall be applied without regard to— 

6 ‘‘(I) the limitation described in 

7 subparagraph (B)(i) thereof, and 

8 ‘‘(II) the business credit increase 

9 amount under subparagraph (E)(iii) 

10 thereof. 

11 ‘‘(ii) TAXPAYERS PREVIOUSLY ELECT12 ING ACCELERATION.—In the case of a tax13 payer who made the election under sub14 paragraph (A) for its first taxable year 

15 ending after March 31, 2008, a taxpayer 

16 who made the election under subparagraph 

17 (H)(ii) for its first taxable year ending 

18 after December 31, 2008, or a taxpayer 

19 who made the election under subparagraph 

20 (I)(iii) for its first taxable year ending 

21 after December 31, 2010— 

22 ‘‘(I) the taxpayer may elect not 

23 to have this paragraph apply to round 

24 3 extension property, but 


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1 ‘‘(II) if the taxpayer does not 

2 make the election under subclause (I), 

3 in applying this paragraph to the tax4 payer the bonus depreciation amount, 

5 maximum amount, and maximum in6 crease amount shall be computed and 

7 applied to eligible qualified property 

8 which is round 3 extension property. 

9 The amounts described in subclause (II) 

10 shall be computed separately from any 

11 amounts computed with respect to eligible 

12 qualified property which is not round 2 ex13 tension property. 

14 ‘‘(iii) TAXPAYERS NOT PREVIOUSLY

15 ELECTING ACCELERATION.—In the case of 

16 a taxpayer who neither made the election 

17 under subparagraph (A) for its first tax18 able year ending after March 31, 2008, 

19 nor made the election under subparagraph 

20 (H)(ii) for its first taxable year ending 

21 after December 31, 2008, nor made the 

22 election under subparagraph (I)(iii) for its 

23 first taxable year ending after December 

24 31, 2010— 


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1 ‘‘(I) the taxpayer may elect to 

2 have this paragraph apply to its first 

3 taxable year ending after December 

4 31, 2011, and each subsequent tax5 able year, and 

6 ‘‘(II) if the taxpayer makes the 

7 election under subclause (I), this 

8 paragraph shall only apply to eligible 

9 qualified property which is round 3 

10 extension property. 

11 ‘‘(iv) ROUND 3 EXTENSION PROP12 ERTY.—For purposes of this subpara13 graph, the term ‘round 3 extension prop14 erty’ means property which is eligible 

15 qualified property solely by reason of the 

16 extension of the application of the special 

17 allowance under paragraph (1) pursuant to 

18 the amendments made by section 7(a) of 

19 the Small Business Jobs Tax Extenders 

20 Act of 2011 (and the application of such 

21 extension to this paragraph pursuant to 

22 the amendment made by section 7(c)(1) of 

23 such Act).’’. 

24 (d) CONFORMING AMENDMENTS.— 


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1 (1) The heading for subsection (k) of section 

2 168 is amended by striking ‘‘JANUARY 1, 2013’’ and 

3 inserting ‘‘JANUARY 1, 2014’’. 

4 (2) The heading for clause (ii) of section 

5 168(k)(2)(B) is amended by striking ‘‘PRE-JANUARY

6 1, 2013’’ and inserting ‘‘PRE-JANUARY 1, 2014’’. 

7 (3) Paragraph (5) of section 168(l) is amend8 ed— 

9 (A) by striking ‘‘and’’ at the end of sub10 paragraph (A), 

11 (B) by redesignating subparagraph (C) as 

12 subparagraph (B), and 

13 (C) by inserting after subparagraph (A) 

14 the following new subparagraph: 

15 ‘‘(B) by substituting ‘January 1, 2013’ for 

16 ‘January 1, 2014’ in clause (i) thereof, and’’. 

17 (4) Subparagraph (C) of section 168(n)(2) is 

18 amended by striking ‘‘January 1, 2013’’ and insert19 ing ‘‘January 1, 2014’’. 

20 (5) Subparagraph (D) of section 1400L(b)(2) is 

21 amended by striking ‘‘January 1, 2013’’ and insert22 ing ‘‘January 1, 2014’’. 

23 (6) Subparagraph (B) of section 1400N(d)(3) 

24 is amended by striking ‘‘January 1, 2013’’ and in25 serting ‘‘January 1, 2014’’. 


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1 (e) EFFECTIVE DATES.—The amendments made by 

2 this section shall apply to property placed in service after 

3 December 31, 2011, in taxable years ending after such 

4 date. 

5 SEC. 107. EXTENSION OF SPECIAL RULE FOR LONG-TERM 

6 CONTRACT ACCOUNTING. 

7 (a) IN GENERAL.—Clause (ii) of section 460(c)(6)(B) 

8 is amended by striking ‘‘January 1, 2011 (January 1, 

9 2012’’ and inserting ‘‘January 1, 2012 (January 1, 

10 2013’’. 

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

12 this section shall apply to property placed in service after 

13 December 31, 2010. 

14 SEC. 108. EXTENSION OF INCREASED AMOUNT ALLOWED AS 

15 A DEDUCTION FOR START-UP EXPENDI16 TURES. 

17 (a) IN GENERAL.—Paragraph (3) of section 195(b) 

18 is amended— 

19 (1) by inserting ‘‘or 2011’’ after ‘‘2010’’, and 

20 (2) by inserting ‘‘AND 2011’’ in the heading 

21 thereof. 

22 (b) EFFECTIVE DATE.—The amendments made by 

23 this section shall apply to amounts paid or incurred in tax24 able years beginning after December 31, 2010. 


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1 SEC. 109. EXTENSION OF ALLOWANCE OF DEDUCTION FOR 

2 HEALTH INSURANCE IN COMPUTING SELF3 EMPLOYMENT TAXES. 

4 (a) IN GENERAL.—Paragraph (4) of section 162(l) 

5 is amended by striking ‘‘December 31, 2010’’ and insert6 ing ‘‘December 31, 2011’’. 

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

8 this section shall apply to taxable years beginning after 

9 December 31, 2010. 

10 TITLE II—OFFSETTING 

11 PROVISIONS 

12 SEC. 201. EXPANSION OF AFFORDABILITY EXCEPTION TO 

13 INDIVIDUAL MANDATE. 

14 Section 5000A(e)(1) is amended by striking ‘‘8 per15 cent’’ each place it appears and inserting ‘‘5 percent’’. 

Æ 


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