ABC Act of 2023

Subjects: Taxation

Summary:  <p><b>Access Business Credit Act of 2023</b> <b>or the ABC Act of 2023</b></p> <p>This bill excludes from the gross income of certain banks, for income tax purposes, interest received on small business loans of up to $5 million. The exclusion does not apply to interest received after 2027.</p> <p>The bill applies to loans that are (1) secured by land situated in the United States that is used or held by the small business in connection with the active conduct of a farming business, or (2) incurred in the ordinary course of the trade or business of the small business. </p> <p>To be eligible for the exclusion, a bank must have less than $50 billion in assets at the close of the preceding taxable year.</p>

<html><body><pre>[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3060 Introduced in House (IH)]

&lt;DOC&gt;






118th CONGRESS
  1st Session
                                H. R. 3060

To amend the Internal Revenue Code of 1986 to provide an exclusion from 
       gross income for interest on certain small business loans.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                              May 2, 2023

  Mr. Kim of New Jersey (for himself and Mr. Burchett) 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 an exclusion from 
       gross income for interest on certain small business loans.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Access Business Credit Act of 2023'' 
or as the ``ABC Act of 2023''.

SEC. 2. EXCLUSION OF INTEREST ON CERTAIN SMALL BUSINESS LOANS.

    (a) In General.--Part III of subchapter B of chapter 1 of the 
Internal Revenue Code of 1986 is amended by inserting after section 
139I the following new section:

``SEC. 139J. INTEREST ON CERTAIN SMALL BUSINESS LOANS.

    ``(a) In General.--In the case of a bank described in subsection 
(c), gross income shall not include qualified interest received from a 
small business during the taxable year.
    ``(b) Qualified Interest.--The term `qualified interest' means, 
with respect to a small business, interest on indebtedness of not more 
than $5,000,000--
            ``(1) secured by land situated in the United States that is 
        used or held by the small business in connection with the 
        active conduct of a farming business, or
            ``(2) incurred in the ordinary course of the trade or 
        business of the small business.
    ``(c) Bank Described.--
            ``(1) In general.--A bank is described in this subsection 
        if the bank has less than $50,000,000,000 in assets at the 
        close of the preceding taxable year.
            ``(2) Bank defined.--For purposes of this subsection--
                    ``(A) In general.--The term `bank' means--
                            ``(i) any financial institution described 
                        in section 581 or 591, and
                            ``(ii) a corporation which, under the laws 
                        of the State of its incorporation, is subject 
                        to supervision and examination by the 
                        Commissioner of Banking or other officer of 
                        such State in charge of the administration of 
                        the banking laws of such State.
                    ``(B) Holding company.--The term `bank' includes--
                            ``(i) any bank holding company (within the 
                        meaning of section 2(a) of the Bank Holding 
                        Company Act of 1956), and
                            ``(ii) any subsidiary of a financial 
                        institution described in section 581 or 591 or 
                        of any bank holding company if such subsidiary 
                        is predominantly engaged (directly or 
                        indirectly) in the active conduct of a banking, 
                        financing, or similar business.
    ``(d) Small Business.--The term `small business' means a small 
business concern as defined under section 3 of the Small Business Act 
(15 U.S.C. 632).
    ``(e) Farming Business.--The term `farming business' has the 
meaning given such term by section 263A(e)(4).
    ``(f) Termination.--This section shall not apply to interest 
received after December 31, 2027.''.
    (b) Clerical Amendment.--The table of sections for part III of 
subchapter B of chapter 1 of such Code is amended by inserting after 
the item relating to section 139I the following new item:

``Sec. 139J. Interest on certain small business loans.''.
    (c) Report to Congress.--Not later than December 31, 2025, the 
Commissioner of Internal Revenue, after consultation with the Federal 
reserve banks, shall submit to Congress a written report providing the 
recommendation of the Commissioner regarding whether the exclusion 
provided under section 139J of the Internal Revenue Code of 1986 (as 
added by this section) should be extended or should be allowed to 
terminate and the reasons for such recommendation.
    (d) Effective Date.--The amendments made by this section shall 
apply to interest received after December 31, 2022, in taxable years 
ending after such date.
                                 &lt;all&gt;
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