II 

112TH CONGRESS 

2D SESSION S. 2284 

To amend the Internal Revenue Code of 1986 to provide expensing for 

small businesses. 

IN THE SENATE OF THE UNITED STATES 

APRIL 16, 2012 

Mr. BEGICH 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 provide 

expensing for small businesses. 

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

3 SECTION 1. ELECTION FOR SMALL BUSINESSES TO EX4 PENSE DEPRECIABLE PROPERTY. 

5 (a) IN GENERAL.—Part VI of subchapter B of chap6 ter 1 of the Internal Revenue Code of 1986 is amended 

7 by inserting after section 179E the following new section: 


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1 ‘‘SEC. 179F. ELECTION FOR SMALL BUSINESSES TO EX2 PENSE CERTAIN DEPRECIABLE PROPERTY. 

3 ‘‘(a) IN GENERAL.—An eligible small business may 

4 elect to treat the cost of any qualified property as an ex5 pense which is not chargeable to a capital account. 

6 ‘‘(b) ELIGIBLE SMALL BUSINESS.—For purposes of 

7 this section— 

8 ‘‘(1) IN GENERAL.—The term ‘eligible small 

9 business’ means, with respect to any taxable year, 

10 any trade or business the net profit of which does 

11 not exceed $1,000,000. 

12 ‘‘(2) NET PROFIT.—The term ‘net profit’ 

13 means the excess of the aggregate gross receipts 

14 over the sum of— 

15 ‘‘(A) the costs of goods sold which are allo16 cable to such receipts, and 

17 ‘‘(B) other expenses, losses, or deductions 

18 which are properly allocable to such receipts. 

19 ‘‘(3) AGGREGATION RULES.—All persons treat20 ed as a single employer under subsection (a) or (b) 

21 of section 52 or subsection (m) or (o) of section 414 

22 shall be treated as a single trade or business for 

23 purposes of this subsection. 

24 ‘‘(c) ELECTION.—An election under this section for 

25 any taxable year shall be made on the taxpayer’s return 

26 of the tax imposed by this chapter for the taxable year. 


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1 Such election shall be made in such manner as the Sec2 retary may by regulation prescribe. 

3 ‘‘(d) DEFINITIONS AND SPECIAL RULES.— 

4 ‘‘(1) QUALIFIED PROPERTY.—For purposes of 

5 this section, the term ‘qualified property’ means any 

6 property which is section 179 property as defined in 

7 section 179(d)(1), determined— 

8 ‘‘(A) without regard to any placed in serv9 ice date under subparagraph (A)(ii) thereof, 

10 and 

11 ‘‘(B) without regard to any taxable year 

12 limitation under section 179(f). 

13 ‘‘(2) SPECIAL RULES.—For purposes of this 

14 section, rules similar to the rules of paragraphs (3), 

15 (4), (5), (9), and (10) of section 179(d) shall 

16 apply.’’. 

17 (b) CLERICAL AMENDMENT.—Part VI of subchapter 

18 B of chapter 1 of the Internal Revenue Code of 1986 is 

19 amended by inserting after the item relating to section 

20 179E the following new item: 

‘‘Sec. 179F. Election for small businesses to expense certain depreciable property.’’. 

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

22 this section shall apply to taxable years beginning after 

23 December 31, 2012. 

Æ 


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