America's Small Business Tax Relief Act of 2013

To amend the Internal Revenue Code of 1986 to provide tax relief for small businesses, and for other purposes. 1. Short title; etc (a) Short title This Act may be cited as the America’s Small Business Tax Relief Act of 2013 (b) References Except as otherwise expressly provided, whenever in this Act an amendment or repeal is expressed in terms of an amendment to, or repeal of, a section or other provision, the reference shall be considered to be made to a section or other provision of the Internal Revenue Code of 1986. (c) Table of contents The table of contents for 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. 2. 100-percent exclusion of gain on certain small business stock made permanent (a) In general Paragraph (4) of section 1202(a) is amended— (1) by striking after the date of the enactment of the Creating Small Business Jobs Act of 2010 and before January 1, 2014 after September 27, 2010 (2) by striking during certain periods in 2010 and 2011 after September 27, 2010 (b) Effective date The amendments made by this section shall apply to stock acquired after December 31, 2013. 3. 5-year carryback of general business credits of eligible small businesses reinstated and made permanent (a) In general Subparagraph (A) of section 39(a)(4) is amended by striking determined in the first taxable year of the taxpayer beginning in 2010 (b) Effective date The amendment made by this section shall apply to credits determined in taxable years beginning after December 31, 2012. 4. Alternative minimum tax rules for general business credits of eligible small businesses reinstated and made permanent (a) In general Paragraph (5) of section 38(c) is amended— (1) by striking determined in taxable years beginning in 2010 (2) by striking in 2010 (b) Effective date The amendments made by this section shall apply to credits determined in taxable years beginning after December 31, 2012, and to carrybacks of such credits. 5. Reduction in recognition period for built-in gains tax made permanent (a) In general Subparagraph (A) of section 1374(d)(7) is amended by striking 10-year period 5-year period (b) Conforming amendments (1) Paragraph (7) of section 1374(d) is amended by striking subparagraphs (B) and (C) and by redesignating subparagraph (D) as subparagraph (B). (2) Subparagraph (B) of section 1374(d)(7), as redesignated by paragraph (1), is amended by striking section 593(e)— section 593(e), subparagraph (A) shall be applied without regard to the phrase 5-year (c) Effective date The amendments made by this section shall apply to taxable years beginning after December 31, 2013. 6. Increased expensing limitations and treatment of certain real property as section 179 property made permanent (a) In general Subsection (b) of section 179 is amended— (1) by striking shall not exceed— shall not exceed $500,000. (2) by striking exceeds— exceeds $2,000,000. (b) Computer software Clause (ii) of section 179(d)(1)(A) is amended by striking and which is placed in service in a taxable year beginning after 2002 and before 2014, (c) Election Paragraph (2) of section 179(c) is amended to read as follows: (2) Revocation of election Any election made under this section, and any specification contained in any such election, may be revoked by the taxpayer with respect to any property, and such revocation, once made, shall be irrevocable. . (d) Special rules for treatment of qualified real property Paragraph (1) of section 179(f) is amended by striking beginning in 2010, 2011, 2012, or 2013 (e) Effective date The amendments made by this section shall apply to taxable years beginning after December 31, 2013. 7. Special rule for long-term contract accounting made permanent (a) In general Subparagraph (B) of section 460(c)(6) is amended by striking which— which has a recovery period of 7 years or less. (b) Effective date The amendment made by this section shall apply to property placed in service after December 31, 2013. 8. Increase of amount allowed as a deduction for start-up expenditures reinstated and made permanent (a) In general Clause (ii) of section 195(b)(1)(A) is amended— (1) by striking $5,000 $10,000 (2) by striking $50,000 $60,000 (b) Conforming amendment Subsection (b) of section 195 is amended by striking paragraph (3). (c) Effective date The amendments made by this section shall apply to amounts paid or incurred in taxable years beginning after December 31, 2012. 9. Allowance of deduction for health insurance in computing self-employment taxes reinstated and made permanent (a) In general Paragraph (4) of section 162(l) is amended by striking , or after December 31, 2010 (b) Effective date The amendment made by this section shall apply to taxable years beginning after December 31, 2012.

Summary: America's Small Business Tax Relief Act of 2013 - Amends the Internal Revenue Code to make permanent: (1) the 100% exclusion from gross income of gain from the sale of certain small business stock, (2) carrybacks and alternative minimum tax rules relating to small business tax credits, (3) the reduction in the recognition period for the built-in gains from the sale of S corporation stock, (4) the increased limitation for the expensing of depreciable business assets, (5) the use of the percentage of completion accounting method for long-term contracts, (6) the increased tax deduction for business start-up expenditures, and (7) the allowance of a deduction for health insurance premiums in computing net earnings from self-employment income.