I 
109TH CONGRESS 
1ST SESSION H. R. 1091 
To amend the Internal Revenue Code of 1986 to provide for small business 
tax incentives, to amend the Fair Labor Standards Act of 1938 to 
increase the minimum wage and to increase the exemption for annual 
gross volume of sales made or business done by an enterprise, and 
for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
MARCH 3, 2005 
Mr. ENGLISH of Pennsylvania introduced the following bill; which was referred 
to the Committee on Ways and Means, and in addition to the Committee 
on Education and the Workforce, for a period to be subsequently deter-
mined by the Speaker, in each case for consideration of such provisions 
as fall within the jurisdiction of the committee concerned 
A BILL 
To amend the Internal Revenue Code of 1986 to provide 
for small business tax incentives, to amend the Fair 
Labor Standards Act of 1938 to increase the minimum 
wage and to increase the exemption for annual gross 
volume of sales made or business done by an enterprise, 
and for other purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SMALL BUSINESS TAX INCENTIVES. 
(a) INCREASE IN SECTION 179 EXPENSING.—
(1) INCREASE
IN
DOLLAR
LIMITATION
MADE 
PERMANENT.—Paragraph (1) of section 179(b) of 
the Internal Revenue Code of 1986 (relating to dol-
lar limitation) is amended by striking ‘‘$25,000 
($100,000 in the case of taxable years beginning 
after 2002 and before 2008)’’ and inserting 
‘‘$100,000’’. 
(2) INCREASE IN THRESHOLD FOR REDUCTION 
OF DOLLAR LIMITATION.—Paragraph (2) of section 
179(b) of such Code (relating to reduction in limita-
tion) is amended by striking ‘‘$200,000 ($400,000 
in the case of taxable years beginning after 2002 
and before 2008)’’ and inserting ‘‘$500,000’’. 
(3) INFLATION ADJUSTMENT.—Paragraph (5) 
of section 179(b) of such Code (relating to inflations 
adjustments) is amended to read as follows: 
‘‘(5) INFLATION ADJUSTMENTS.— 
‘‘(A) DOLLAR LIMITATION.—In the case of 
any taxable year beginning in a calendar year 
after 2005, the $100,000 amount in paragraph 
(1) shall be increased by an amount equal to— 
‘‘(i) such dollar amount, multiplied by 
‘‘(ii) the cost-of-living adjustment 
under section 1(f)(3) for the calendar year 
in which the taxable year begins deter-
mined by substituting ‘calendar year 2002’ 
for ‘calendar year 1992’ in subparagraph 
(B) thereof. 
‘‘(B) PHASEOUT AMOUNT.—In the case of 
any taxable year beginning in a calendar year 
after 2006, the $500,000 amount in paragraph 
(2) shall be increased by an amount equal to— 
‘‘(i) such dollar amount, multiplied by 
‘‘(ii) the cost-of-living adjustment 
under section 1(f)(3) for the calendar year 
in which the taxable year begins deter-
mined by substituting ‘calendar year 2005’ 
for ‘calendar year 1992’ in subparagraph 
(B) thereof. 
‘‘(C) ROUNDING.— 
‘‘(i) DOLLAR
LIMITATION.—If the 
amount in paragraph (1) as increased 
under subparagraph (A) is not a multiple 
of $1,000, such amount shall be rounded 
to the nearest multiple of $1,000. 
‘‘(ii) PHASEOUT
AMOUNT.—If the 
amount in paragraph (2) as increased 
under subparagraph (B) is not a multiple 
of $10,000, such amount shall be rounded 
to the nearest multiple of $10,000.’’.