I 

113TH CONGRESS 

1ST SESSION H. R. 886 

To amend the Internal Revenue Code of 1986 to provide tax relief for 

small businesses, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

FEBRUARY 28, 2013 

Mr. GERLACH (for himself and Mr. KIND) introduced the following bill; which 

was referred to the Committee on Ways and Means 

A BILL 

To amend the Internal Revenue Code of 1986 to provide 

tax relief for 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; ETC. 

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

5 ‘‘America’s Small Business Tax Relief Act of 2013’’. 

6 (b) REFERENCES.—Except as otherwise expressly 

7 provided, whenever in this Act an amendment or repeal 

8 is expressed in terms of an amendment to, or repeal of, 

9 a section or other provision, the reference shall be considVerDate Mar 15 2010 23:56 Mar 01, 2013 Jkt 029200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H886.IH H886

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1 ered to be made to a section or other provision of the In2 ternal Revenue Code of 1986. 

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

4 this Act is as follows: 

Sec. 1. Short title; etc. 

Sec. 2. 100-percent exclusion of gain on certain small business stock made permanent. 

Sec. 3. 5-year carryback of general business credits of eligible small businesses 

reinstated and made permanent. 

Sec. 4. Alternative minimum tax rules for general business credits of eligible 

small businesses reinstated and made permanent. 

Sec. 5. Reduction in recognition period for built-in gains tax made permanent. 

Sec. 6. Increased expensing limitations and treatment of certain real property 

as section 179 property made permanent. 

Sec. 7. Special rule for long-term contract accounting made permanent. 

Sec. 8. Increase of amount allowed as a deduction for start-up expenditures reinstated and made permanent. 

Sec. 9. Allowance of deduction for health insurance in computing self-employment taxes reinstated and made permanent. 

5 SEC. 2. 100-PERCENT EXCLUSION OF GAIN ON CERTAIN 

6 SMALL BUSINESS STOCK MADE PERMANENT. 

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

8 is amended— 

9 (1) by striking ‘‘after the date of the enactment 

10 of the Creating Small Business Jobs Act of 2010 

11 and before January 1, 2014’’ and inserting ‘‘after 

12 September 27, 2010’’, and 

13 (2) by striking ‘‘DURING CERTAIN PERIODS IN

14 2010 AND 2011’’ and inserting ‘‘AFTER SEPTEMBER

15 27, 2010’’ in the heading thereof. 

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

17 this section shall apply to stock acquired after December 

18 31, 2013. 


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1 SEC. 3. 5-YEAR CARRYBACK OF GENERAL BUSINESS CRED2 ITS OF ELIGIBLE SMALL BUSINESSES REIN3 STATED AND MADE PERMANENT. 

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

5 39(a)(4) is amended by striking ‘‘determined in the first 

6 taxable year of the taxpayer beginning in 2010’’. 

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

8 this section shall apply to credits determined in taxable 

9 years beginning after December 31, 2012. 

10 SEC. 4. ALTERNATIVE MINIMUM TAX RULES FOR GENERAL 

11 BUSINESS CREDITS OF ELIGIBLE SMALL 

12 BUSINESSES REINSTATED AND MADE PERMA13 NENT. 

14 (a) IN GENERAL.—Paragraph (5) of section 38(c) is 

15 amended— 

16 (1) by striking ‘‘determined in taxable years be17 ginning in 2010’’ in subparagraph (A), and 

18 (2) by striking ‘‘IN 2010’’ in the heading of such 

19 paragraph. 

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

21 this section shall apply to credits determined in taxable 

22 years beginning after December 31, 2012, and to 

23 carrybacks of such credits. 


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1 SEC. 5. REDUCTION IN RECOGNITION PERIOD FOR BUILT2 IN GAINS TAX MADE PERMANENT. 

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

4 1374(d)(7) is amended by striking ‘‘10-year period’’ and 

5 inserting ‘‘5-year period’’. 

6 (b) CONFORMING AMENDMENTS.— 

7 (1) Paragraph (7) of section 1374(d) is amend8 ed by striking subparagraphs (B) and (C) and by re9 designating subparagraph (D) as subparagraph (B). 

10 (2) Subparagraph (B) of section 1374(d)(7), as 

11 redesignated by paragraph (1), is amended by strik12 ing ‘‘section 593(e)—’’ and all that follows and in13 serting ‘‘section 593(e), subparagraph (A) shall be 

14 applied without regard to the phrase ‘5-year’.’’. 

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

16 this section shall apply to taxable years beginning after 

17 December 31, 2013. 

18 SEC. 6. INCREASED EXPENSING LIMITATIONS AND TREAT19 MENT OF CERTAIN REAL PROPERTY AS SEC20 TION 179 PROPERTY MADE PERMANENT. 

21 (a) IN GENERAL.—Subsection (b) of section 179 is 

22 amended— 

23 (1) by striking ‘‘shall not exceed—’’ and all 

24 that follows in paragraph (1) and inserting ‘‘shall 

25 not exceed $500,000.’’, and 


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1 (2) by striking ‘‘exceeds—’’ and all that follows 

2 in paragraph (2) and inserting ‘‘exceeds 

3 $2,000,000.’’. 

4 (b) COMPUTER SOFTWARE.—Clause (ii) of section 

5 179(d)(1)(A) is amended by striking ‘‘and which is placed 

6 in service in a taxable year beginning after 2002 and be7 fore 2014,’’. 

8 (c) ELECTION.—Paragraph (2) of section 179(c) is 

9 amended to read as follows: 

10 ‘‘(2) REVOCATION OF ELECTION.—Any election 

11 made under this section, and any specification con12 tained in any such election, may be revoked by the 

13 taxpayer with respect to any property, and such rev14 ocation, once made, shall be irrevocable.’’. 

15 (d) SPECIAL RULES FOR TREATMENT OF QUALIFIED

16 REAL PROPERTY.—Paragraph (1) of section 179(f) is 

17 amended by striking ‘‘beginning in 2010, 2011, 2012, or 

18 2013’’. 

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

20 this section shall apply to taxable years beginning after 

21 December 31, 2013. 

22 SEC. 7. SPECIAL RULE FOR LONG-TERM CONTRACT AC23 COUNTING MADE PERMANENT. 

24 (a) IN GENERAL.—Subparagraph (B) of section 

25 460(c)(6) is amended by striking ‘‘which—’’ and all that 


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1 follows and inserting ‘‘which has a recovery period of 7 

2 years or less.’’. 

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

4 this section shall apply to property placed in service after 

5 December 31, 2013. 

6 SEC. 8. INCREASE OF AMOUNT ALLOWED AS A DEDUCTION 

7 FOR START-UP EXPENDITURES REINSTATED 

8 AND MADE PERMANENT. 

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

10 195(b)(1)(A) is amended— 

11 (1) by striking ‘‘$5,000’’ and inserting 

12 ‘‘$10,000’’, and 

13 (2) by striking ‘‘$50,000’’ and inserting 

14 ‘‘$60,000’’. 

15 (b) CONFORMING AMENDMENT.—Subsection (b) of 

16 section 195 is amended by striking paragraph (3). 

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

18 this section shall apply to amounts paid or incurred in tax19 able years beginning after December 31, 2012. 

20 SEC. 9. ALLOWANCE OF DEDUCTION FOR HEALTH INSUR21 ANCE IN COMPUTING SELF-EMPLOYMENT 

22 TAXES REINSTATED AND MADE PERMANENT. 

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

24 is amended by striking ‘‘, or after December 31, 2010’’. 


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

2 this section shall apply to taxable years beginning after 

3 December 31, 2012. 

Æ 


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