I 

111TH CONGRESS 

2D SESSION H. R. 4779 

To amend the Internal Revenue Code of 1986 to encourage the creation 

and growth of small business and reduce the cost of complying with 

the tax requirements. 

IN THE HOUSE OF REPRESENTATIVES 

MARCH 4, 2010 

Mr. POMEROY (for himself and Mr. MORAN of Kansas) 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 encourage 

the creation and growth of small business and reduce 

the cost of complying with the tax requirements. 

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 Jobs 

5 and Tax Relief Act of 2010’’. 

6 SEC. 2. EXTEND TEMPORARY BONUS DEPRECIATION FOR 

7 CERTAIN PROPERTY. 

8 (a) EXTENSION OF SPECIAL ALLOWANCE.— 


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1 (1) IN GENERAL.—Paragraph (2) of section 

2 168(k) of the Internal Revenue Code of 1986 is 

3 amended— 

4 (A) by striking ‘‘January 1, 2011’’ and in5 serting ‘‘January 1, 2012’’, and 

6 (B) by striking ‘‘January 1, 2010’’ each 

7 place it appears and inserting ‘‘January 1, 

8 2011’’. 

9 (2) CONFORMING AMENDMENTS.— 

10 (A) The heading for subsection (k) of sec11 tion 168 of such Code is amended by striking 

12 ‘‘JANUARY 1, 2010’’ and inserting ‘‘JANUARY

13 1, 2011’’. 

14 (B) The heading for clause (ii) of section 

15 168(k)(2)(B) of such Code is amended by strik16 ing ‘‘PRE-JANUARY 1, 2010’’ and inserting ‘‘PRE17 JANUARY 1, 2011’’. 

18 (C) Subparagraph (B) of section 168(l)(5) 

19 of such Code is amended by striking ‘‘January 

20 1, 2010’’ and inserting ‘‘January 1, 2011’’. 

21 (D) Subparagraph (C) of section 168(n)(2) 

22 of such Code is amended by striking ‘‘January 

23 1, 2010’’ and inserting ‘‘January 1, 2011’’. 

24 (E) Subparagraph (B) of section 

25 1400N(d)(3) of such Code is amended by strikVerDate Nov 24 2008 05:24 Mar 05, 2010 Jkt 089200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H4779.IH H4779

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1 ing ‘‘January 1, 2010’’ and inserting ‘‘January 

2 1, 2011’’. 

3 (b) EXTENSION OF ELECTION TO ACCELERATE THE

4 AMT AND RESEARCH CREDITS IN LIEU OF BONUS DE5 PRECIATION.—Section 168(k)(4) of such Code (relating to 

6 election to accelerate the AMT and research credits in lieu 

7 of bonus depreciation) is amended— 

8 (1) by striking ‘‘2009’’ and inserting ‘‘2010’’ in 

9 subparagraph (D)(iii) (as redesignated by subsection 

10 (a)(3)), and 

11 (2) by adding at the end the following new sub12 paragraph: 

13 ‘‘(I) SPECIAL RULES FOR EXTENSION

14 PROPERTY.— 

15 ‘‘(i) TAXPAYERS PREVIOUSLY ELECT16 ING ACCELERATION.—In the case of a tax17 payer who made the election under sub18 paragraph (A) for its first taxable year 

19 ending after March 31, 2008— 

20 ‘‘(I) the taxpayer may elect not 

21 to have this paragraph apply to exten22 sion property, but 

23 ‘‘(II) if the taxpayer does not 

24 make the election under subclause (I), 

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1 payer a separate bonus depreciation 

2 amount, maximum amount, and max3 imum increase amount shall be com4 puted and applied to eligible qualified 

5 property which is extension property 

6 and to eligible qualified property 

7 which is not extension property. 

8 ‘‘(ii) TAXPAYERS NOT PREVIOUSLY

9 ELECTING ACCELERATION.—In the case of 

10 a taxpayer who did not make the election 

11 under subparagraph (A) for its first tax12 able year ending after March 31, 2008— 

13 ‘‘(I) the taxpayer may elect to 

14 have this paragraph apply to its first 

15 taxable year ending after December 

16 31, 2009, and each subsequent tax17 able year, and 

18 ‘‘(II) if the taxpayer makes the 

19 election under subclause (I), this 

20 paragraph shall only apply to eligible 

21 qualified property which is extension 

22 property. 

23 ‘‘(iii) EXTENSION PROPERTY.—For 

24 purposes of this subparagraph, the term 

25 ‘extension property’ means property which 


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1 is eligible qualified property solely by rea2 son of the extension of the application of 

3 the special allowance under paragraph (1) 

4 pursuant to the amendments made by sec5 tion 3(a) of the Small Business Jobs and 

6 Tax Relief Act of 2010 (and the applica7 tion of such extension to this paragraph 

8 pursuant to the amendment made by sec9 tion 3(b)(1) of such Act). 

10 ‘‘(b) LIMITATION.—The amount taken into account 

11 under subsection (a) shall not exceed $1,500 for each vehi12 cle on which an idling reduction device is affixed.’’. 

13 (c) EFFECTIVE DATES.—The amendments made by 

14 this section shall apply to property placed in service after 

15 December 31, 2009, in taxable years ending after such 

16 date. 

17 SEC. 3. INCREASE IN AMOUNT ALLOWED AS DEDUCTION 

18 FOR START-UP EXPENDITURES. 

19 (a) IN GENERAL.—Subsection (b) of section 195 of 

20 the Internal Revenue Code of 1986 is amended by adding 

21 at the end the following: 

22 ‘‘(3) SPECIAL RULE FOR TAXABLE YEARS BE23 GINNING IN 2009, 2010, OR 2011.—In the case of a 

24 taxable year beginning in 2010, 2011, or 2012, 

25 paragraph (1)(A)(ii) shall be applied— 


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1 ‘‘(A) by substituting ‘$20,000’ for 

2 ‘$5,000’, and 

3 ‘‘(B) by substituting ‘$75,000’ for 

4 ‘$50,000’.’’. 

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

6 this section shall apply to amounts paid or incurred in tax7 able years beginning after the date of the enactment of 

8 this Act. 

9 SEC. 4. REMOVAL OF CELLULAR TELEPHONES (OR SIMILAR 

10 TELECOMMUNICATIONS EQUIPMENT) FROM 

11 LISTED PROPERTY. 

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

13 280F(d)(4) of the Internal Revenue Code (defining listed 

14 property) is amended by inserting ‘‘and’’ at the end of 

15 clause (iv), by striking clause (v), and by redesignating 

16 clause (vi) as clause (v). 

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

18 subsection (a) shall apply to taxable years beginning after 

19 January 1, 2009. 


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1 SEC. 5. NONRECOURSE SMALL BUSINESS INVESTMENT 

2 COMPANY LOANS FROM THE SMALL BUSI3 NESS ADMINISTRATION TREATED AS 

4 AMOUNTS AT RISK. 

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

6 465(b)(6) of the Internal Revenue Code of 1986 is amend7 ed to read as follows: 

8 ‘‘(B) QUALIFIED NONRECOURSE FINANC9 ING.—For purposes of this paragraph— 

10 ‘‘(i) IN GENERAL.—The term ‘quali11 fied nonrecourse financing’ means any fi12 nancing— 

13 ‘‘(I) which is qualified real prop14 erty financing or qualified SBIC fi15 nancing, 

16 ‘‘(II) except to the extent pro17 vided in regulations, with respect to 

18 which no person is personally liable 

19 for repayment, and 

20 ‘‘(III) which is not convertible 

21 debt. 

22 ‘‘(ii) QUALIFIED REAL PROPERTY FI23 NANCING.—The term ‘qualified real prop24 erty financing’ means any financing 

25 which— 


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1 ‘‘(I) is borrowed by the taxpayer 

2 with respect to the activity of holding 

3 real property, 

4 ‘‘(II) is secured by real property 

5 used in such activity, and 

6 ‘‘(III) is borrowed by the tax7 payer from a qualified person or rep8 resents a loan from any Federal, 

9 State, or local government or instru10 mentality thereof, or is guaranteed by 

11 any Federal, State, or local govern12 ment. 

13 ‘‘(iii) QUALIFIED SBIC FINANCING.— 

14 The term ‘qualified SBIC financing’ means 

15 any financing which— 

16 ‘‘(I) is borrowed by a small busi17 ness investment company (within the 

18 meaning of section 301 of the Small 

19 Business Investment Act of 1958), 

20 ‘‘(II) is secured by property used 

21 or held, directly or indirectly, by such 

22 small business investment company, 

23 and 

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1 istration under the authority of sec2 tion 303(b) of such Act.’’. 

3 (b) CONFORMING AMENDMENTS.—Subparagraph (A) 

4 of section 465(b)(6) of such Code is amended— 

5 (1) by striking ‘‘in the case of an activity of 

6 holding real property,’’, and 

7 (2) by striking ‘‘which is secured by real prop8 erty used in such activity’’. 

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

10 this section shall apply to taxable years beginning after 

11 the date of the enactment of this Act. 

12 SEC. 6. TEMPORARY EXCLUSION OF 100 PERCENT OF GAIN 

13 ON CERTAIN SMALL BUSINESS STOCK. 

14 (a) IN GENERAL.—Subsection (a) of section 1202 of 

15 the Internal Revenue Code of 1986 (relating partial exclu16 sion for gain from certain small business stock) is amend17 ed by adding at the end the following new paragraph: 

18 ‘‘(4) 100 EXCLUSION FOR STOCK ACQUIRED

19 DURING 2010.—In the case of qualified small busi20 ness stock acquired during 2010— 

21 ‘‘(A) paragraph (1) shall be applied by 

22 substituting ‘100 percent’ for ‘50 percent’, 

23 ‘‘(B) paragraph (2) shall not apply, and 

24 ‘‘(C) paragraph (7) of section 57(a) shall 

25 not apply.’’. 


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1 (b) CONFORMING AMENDMENT.—Paragraph (3) of 

2 section 1202 (a) of such Code is amended— 

3 (1) by striking ‘‘AND 2010’’ in the heading, and 

4 (2) by striking ‘‘January 1, 2011’’ and insert5 ing ‘‘January 1, 2010’’. 

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

7 this section shall apply to stock acquired after December 

8 31, 2009. 

Æ 


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