II 

113TH CONGRESS 

1ST SESSION S. 1498 

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

provisions relating to small businesses, and for other purposes. 

IN THE SENATE OF THE UNITED STATES 

SEPTEMBER 12, 2013 

Ms. LANDRIEU 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 expiring provisions relating to small businesses, 

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 ‘‘Small Business Tax 

5 Fairness Act’’. 

6 SEC. 2. EXTENSION OF TEMPORARY EXCLUSION OF 100 

7 PERCENT OF GAIN ON CERTAIN SMALL BUSI8 NESS STOCK. 

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

10 of the Internal Revenue Code of 1986 is amended— 


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•S 1498 IS

1 (1) by striking ‘‘January 1, 2014’’ and insert2 ing ‘‘January 1, 2015’’, and 

3 (2) by striking ‘‘AND 2013’’ in the heading and 

4 inserting ‘‘2013, AND 2014’’. 

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

6 this section shall apply to stock acquired after December 

7 31, 2013. 

8 SEC. 3. TEMPORARY INCREASE IN DEDUCTION FOR START9 UP EXPENDITURES. 

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

11 of the Internal Revenue Code of 1986 is amended— 

12 (1) by inserting ‘‘, 2013, or 2014’’ after 

13 ‘‘2010’’, and 

14 (2) by inserting ‘‘2013, OR 2014’’ after ‘‘2010’’ in 

15 the heading. 

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

17 this section shall apply to taxable years beginning after 

18 December 31, 2012. 

19 SEC. 4. EXTENSION OF REDUCTION IN S-CORPORATION 

20 RECOGNITION PERIOD FOR BUILT-IN GAINS 

21 TAX. 

22 (a) IN GENERAL.—Subparagraph (C) of section 

23 1374(d)(7) of the Internal Revenue Code of 1986 is 

24 amended— 


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•S 1498 IS

1 (1) by striking ‘‘2012 or 2013’’ and inserting 

2 ‘‘2012, 2013, or 2014’’, and 

3 (2) by striking ‘‘2012 AND 2013’’ in the heading 

4 and inserting ‘‘2012, 2013, AND 2014’’. 

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

6 this section shall apply to taxable years beginning after 

7 December 31, 2013. 

8 SEC. 5. DEDUCTION FOR HEALTH INSURANCE COSTS IN 

9 COMPUTING SELF-EMPLOYMENT TAXES IN 

10 2013. 

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

12 of the Internal Revenue Code of 1986 is amended by strik13 ing ‘‘beginning before January 1, 2010’’ and all that fol14 lows and inserting ‘‘beginning— 

15 ‘‘(A) before January 1, 2010, 

16 ‘‘(B) after December 31, 2010, and before 

17 January 1, 2013, or 

18 ‘‘(C) after December 31, 2013.’’. 

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

20 this section shall apply to taxable years beginning after 

21 December 31, 2012. 

22 SEC. 6. EXTENSION OF INCREASED EXPENSING LIMITA23 TIONS AND TREATMENT OF CERTAIN REAL 

24 PROPERTY AS SECTION 179 PROPERTY. 

25 (a) IN GENERAL.— 


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•S 1498 IS

1 (1) DOLLAR LIMITATION.—Section 179(b)(1) of 

2 the Internal Revenue Code of 1986 is amended— 

3 (A) by striking ‘‘or 2013’’ in subparagraph 

4 (B) and inserting ‘‘2013, or 2014’’, and 

5 (B) by striking ‘‘2013’’ in subparagraph 

6 (C) and inserting ‘‘2014’’. 

7 (2) REDUCTION IN LIMITATION.—Section 

8 179(b)(2) of such Code is amended— 

9 (A) by striking ‘‘or 2013’’ in subparagraph 

10 (B) and inserting ‘‘2013, or 2014’’, and 

11 (B) by striking ‘‘2013’’ in subparagraph 

12 (C) and inserting ‘‘2014’’. 

13 (b) COMPUTER SOFTWARE.—Section 

14 179(d)(1)(A)(ii) of the Internal Revenue Code of 1986 is 

15 amended by striking ‘‘2014’’ and inserting ‘‘2015’’. 

16 (c) ELECTION.—Section 179(c)(2) of the Internal 

17 Revenue Code of 1986 is amended by striking ‘‘2014’’ and 

18 inserting ‘‘2015’’. 

19 (d) SPECIAL RULES FOR TREATMENT OF QUALIFIED

20 REAL PROPERTY.— 

21 (1) IN GENERAL.—Section 179(f)(1) of the In22 ternal Revenue Code of 1986 is amended by striking 

23 ‘‘or 2013’’ and inserting ‘‘2013, or 2014’’. 

24 (2) CARRYOVER LIMITATION.— 


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•S 1498 IS

1 (A) IN GENERAL.—Section 179(f)(4) of 

2 such Code is amended by striking ‘‘2013’’ each 

3 place it appears and inserting ‘‘2014’’. 

4 (B) CONFORMING AMENDMENT.—Subpara5 graph (C) of section 179(f)(4) of such Code is 

6 amended by striking ‘‘2011 AND 2012’’ in the 

7 heading and inserting ‘‘2011, 2012, AND 2013’’. 

8 (e) EFFECTIVE DATE.—The amendments made by 

9 this section shall apply to taxable years beginning after 

10 December 31, 2013. 

Æ 


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