I 
113TH CONGRESS 
1ST SESSION 
H. R. 774 
To amend the Internal Revenue Code of 1986 to establish small business 
start-up savings accounts. 
IN THE HOUSE OF REPRESENTATIVES 
FEBRUARY 15, 2013 
Mr. GARDNER (for himself, Mr. COFFMAN, Mrs. LUMMIS, Mr. DENHAM, Mr. 
BENISHEK, Mrs. BLACKBURN, Mr. GOHMERT, Mr. LAMALFA, Mr. 
WALBERG, and Mr. WILSON of South Carolina) 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 establish 
small business start-up savings accounts. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Small Business Start- 
up Savings Accounts Act of 2013’’. 
VerDate Mar 15 2010 
04:42 Feb 28, 2013
Jkt 029200
PO 00000
Frm 00001
Fmt 6652
Sfmt 6201
E:\BILLS\H774.IH
H774
tjames on DSK6SPTVN1PROD with BILLS
SEC. 2. ESTABLISHMENT OF SMALL BUSINESS START-UP 
SAVINGS ACCOUNTS. 
(a) IN GENERAL.—Chapter 77 of the Internal Rev-
enue Code of 1986 is amended by adding at the end the 
following new section: 
‘‘SEC. 7529. SMALL BUSINESS START-UP SAVINGS AC-
COUNTS. 
‘‘(a) IN GENERAL.—An individual or an eligible small 
business may enter into an agreement with the Secretary 
to establish a small business start-up savings account. 
‘‘(b) SMALL BUSINESS START-UP SAVINGS AC-
COUNT.—For purposes of this section, the term ‘small 
business start-up savings account’ means a trust created 
or organized in the United States for the benefit of the 
account beneficiary, but only if the written governing in-
strument creating the trust meets the following require-
ments: 
‘‘(1) Except as provided in subsection (d)(3) in 
the case of a rollover contribution, no contribution 
will be accepted unless it is in cash, and contribu-
tions will not be accepted for the taxable year on be-
half of any account beneficiary in excess of the 
amount in effect for such taxable year under sub-
section (d)(2). 
‘‘(2) The trustee is a bank (as defined in sec-
tion 408(n)) or such other person who demonstrates 
VerDate Mar 15 2010 
04:42 Feb 28, 2013
Jkt 029200
PO 00000
Frm 00002
Fmt 6652
Sfmt 6201
E:\BILLS\H774.IH
H774
tjames on DSK6SPTVN1PROD with BILLS
to the satisfaction of the Secretary that the manner 
in which such other person will administer the trust 
will be consistent with the requirements of this sec-
tion. 
‘‘(3) No part of the trust funds will be invested 
in life insurance contracts. 
‘‘(4) The interest of an individual in the bal-
ance of his account is nonforfeitable. 
‘‘(5) The assets of the trust will not be commin-
gled with other property except in a common trust 
fund or common investment fund. 
‘‘(c) ELIGIBLE SMALL BUSINESS.—For purposes of 
this section, the term ‘eligible small business’ means, with 
respect to any taxable year, any person engaged in a trade 
or business if the average number of employees employed 
by such person on business days during the taxable year 
was 500 or fewer. 
‘‘(d) TREATMENT OF CONTRIBUTIONS.— 
‘‘(1) IN GENERAL.—There shall be allowed as a 
deduction for the taxable year an amount equal to 
so much of the account beneficiary’s contributions 
for the taxable year to all small business start-up 
savings accounts maintained for the benefit of such 
beneficiary as do not exceed the contribution limita-
VerDate Mar 15 2010 
04:42 Feb 28, 2013
Jkt 029200
PO 00000
Frm 00003
Fmt 6652
Sfmt 6201
E:\BILLS\H774.IH
H774
tjames on DSK6SPTVN1PROD with BILLS
tions in effect for the taxable year under paragraph 
(2). 
‘‘(2) CONTRIBUTION LIMITATION.— 
‘‘(A) IN GENERAL.—The amount allowable 
as a deduction under paragraph (1) with re-
spect to all small business start-up savings ac-
counts maintained for the benefit of any person 
shall not exceed the lesser of— 
‘‘(i) $10,000, or 
‘‘(ii) $150,000, reduced by the aggre-
gate contributions by such person for all 
taxable years with respect to all small busi-
ness start-up savings accounts of the tax-
payer. 
‘‘(B) COST OF LIVING ADJUSTMENT.— 
‘‘(i) IN GENERAL.—In the case of a 
taxable year beginning after 2013, the 
$10,000 amount in subparagraph (A) shall 
be increased by an amount equal to— 
‘‘(I) such dollar amount, multi-
plied by 
‘‘(II) the cost-of-living adjust-
ment determined under section 1(f)(3) 
for the calendar year in which the tax-
able year begins, determined by sub-
VerDate Mar 15 2010 
04:42 Feb 28, 2013
Jkt 029200
PO 00000
Frm 00004
Fmt 6652
Sfmt 6201
E:\BILLS\H774.IH
H774
tjames on DSK6SPTVN1PROD with BILLS