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SEC. 304. PROHIBITIONS ON EARMARKS. 
None of the funds appropriated for the program es-
tablished under part D of title III of the Small Business 
Investment Act of 1958, as added by this Act, may be 
used for a Congressional earmark as defined in clause 9(e) 
of rule XXI of the Rules of the House of Representatives. 
TITLE IV—MISCELLANEOUS 
SEC. 401. BUDGETARY EFFECTS. 
The budgetary effects of this Act, for the purpose of 
complying with the Statutory Pay-As-You-Go Act of 2010, 
shall be determined by reference to the latest statement 
titled ‘‘Budgetary Effects of PAYGO Legislation’’ for this 
Act, submitted for printing in the Congressional Record 
by the Chairman of the House Budget Committee, pro-
vided that such statement has been submitted prior to the 
vote on passage. 
TITLE V—TAX PROVISIONS 
SEC. 500. SHORT TITLE; ETC. 
(a) SHORT TITLE.—This title may be cited as the 
‘‘Small Business Jobs Tax Relief Act of 2010’’. 
(b) AMENDMENT OF 1986 CODE.—Except as other-
wise expressly provided, whenever in this title an amend-
ment 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 provi-
sion of the Internal Revenue Code of 1986. 
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Subtitle A—Small Business Tax 
Incentives 
PART 1—GENERAL PROVISIONS 
SEC. 501. TEMPORARY EXCLUSION OF 100 PERCENT OF 
GAIN ON CERTAIN SMALL BUSINESS STOCK. 
(a) IN GENERAL.—Subsection (a) of section 1202 is 
amended by adding at the end the following new para-
graph: 
‘‘(4) SPECIAL
100
PERCENT
EXCLUSION.—In 
the case of qualified small business stock acquired 
after March 15, 2010, and before January 1, 
2012— 
‘‘(A) paragraph (1) shall be applied by 
substituting ‘100 percent’ for ‘50 percent’, 
‘‘(B) paragraph (2) shall not apply, and 
‘‘(C) paragraph (7) of section 57(a) shall 
not apply.’’. 
(b) CONFORMING AMENDMENTS.—Paragraph (3) of 
section 1202(a) is amended— 
(1) by striking ‘‘after the date of the enactment 
of this paragraph and before January 1, 2011’’ and 
inserting ‘‘after February 17, 2009, and before 
March 16, 2010’’; and 
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(2) by striking ‘‘SPECIAL RULES FOR 2009 AND 
2010’’ in the heading and inserting ‘‘SPECIAL
PERCENT EXCLUSION’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to stock acquired after March 15, 
2010. 
PART 2—LIMITATIONS AND REPORTING ON 
CERTAIN PENALTIES 
SEC. 511. LIMITATION ON PENALTY FOR FAILURE TO DIS-
CLOSE CERTAIN INFORMATION. 
(a) IN GENERAL.—Subsection (b) of section 6707A 
is amended to read as follows: 
‘‘(b) AMOUNT OF PENALTY.— 
‘‘(1) IN GENERAL.—Except as otherwise pro-
vided in this subsection, the amount of the penalty 
under subsection (a) with respect to any reportable 
transaction shall be 75 percent of the decrease in 
tax shown on the return as a result of such trans-
action (or which would have resulted from such 
transaction if such transaction were respected for 
Federal tax purposes). 
‘‘(2) MAXIMUM PENALTY.—The amount of the 
penalty under subsection (a) with respect to any re-
portable transaction for any taxable year shall not 
exceed— 
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‘‘(A) in the case of a listed transaction, 
$200,000 ($100,000 in the case of a natural 
person), or 
‘‘(B) in the case of any other reportable 
transaction, $50,000 ($10,000 in the case of a 
natural person). 
‘‘(3) MINIMUM PENALTY.—The amount of the 
penalty under subsection (a) with respect to any 
transaction for any taxable year shall not be less 
than $10,000 ($5,000 in the case of a natural per-
son).’’. 
(b) EFFECTIVE DATE.—The amendment made by 
this section shall apply to penalties assessed after Decem-
ber 31, 2006. 
SEC. 512. ANNUAL REPORTS ON PENALTIES AND CERTAIN 
OTHER ENFORCEMENT ACTIONS. 
(a) IN GENERAL.—The Commissioner of Internal 
Revenue, in consultation with the Secretary of the Treas-
ury, shall submit to the Committee on Ways and Means 
of the House of Representatives and the Committee on 
Finance of the Senate an annual report on the penalties 
assessed by the Internal Revenue Service during the pre-
ceding year under each of the following provisions of the 
Internal Revenue Code of 1986: 
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(1) Section 6662A (relating to accuracy-related 
penalty on understatements with respect to report-
able transactions). 
(2) Section 6700(a) (relating to promoting abu-
sive tax shelters). 
(3) Section 6707 (relating to failure to furnish 
information regarding reportable transactions). 
(4) Section 6707A (relating to failure to include 
reportable transaction information with return). 
(5) Section 6708 (relating to failure to main-
tain lists of advisees with respect to reportable 
transactions). 
(b) ADDITIONAL
INFORMATION.—The report re-
quired under subsection (a) shall also include information 
on the following with respect to each year: 
(1) Any action taken under section 330(b) of 
title 31, United States Code, with respect to any re-
portable transaction (as defined in section 6707A(c) 
of the Internal Revenue Code of 1986). 
(2) Any extension of the time for assessment of 
tax enforced, or assessment of any amount under 
such an extension, under paragraph (10) of section 
6501(c) of the Internal Revenue Code of 1986. 
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(c) DATE OF REPORT.—The first report required 
under subsection (a) shall be submitted not later than De-
cember 31, 2010. 
PART 3—OTHER PROVISIONS 
SEC. 521. INCREASE IN AMOUNT ALLOWED AS DEDUCTION 
FOR START-UP EXPENDITURES. 
(a) IN GENERAL.—Subsection (b) of section 195 is 
amended by adding at the end the following new para-
graph: 
‘‘(3) INCREASED
LIMITATION
FOR
TAXABLE 
YEARS BEGINNING IN 2010 OR 2011.—In the case of 
any taxable year beginning in 2010 or 2011, para-
graph (1)(A)(ii) shall be applied— 
‘‘(A) 
by 
substituting 
‘$20,000’ 
for 
‘$5,000’, and 
‘‘(B) 
by 
substituting 
‘$75,000’ 
for 
‘$50,000’.’’. 
(b) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2009. 
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‘‘(I) is borrowed by the taxpayer 
with respect to the activity of holding 
real property, 
‘‘(II) is secured by real property 
used in such activity, and 
‘‘(III) is borrowed by the tax-
payer from a qualified person or rep-
resents a loan from any Federal, 
State, or local government or instru-
mentality thereof, or is guaranteed by 
any Federal, State, or local govern-
ment. 
‘‘(iii) QUALIFIED SBIC FINANCING.— 
The term ‘qualified SBIC financing’ means 
any financing which— 
‘‘(I) is borrowed by a small busi-
ness investment company (within the 
meaning of section 301 of the Small 
Business Investment Act of 1958), 
and 
‘‘(II) is borrowed from, or guar-
anteed by, the Small Business Admin-
istration under the authority of sec-
tion 303(b) of such Act.’’. 
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(b) CONFORMING AMENDMENTS.—Subparagraph (A) 
of section 465(b)(6) is amended— 
(1) by striking ‘‘in the case of an activity of 
holding real property,’’; and 
(2) by striking ‘‘which is secured by real prop-
erty used in such activity’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to loans and guarantees made after 
the date of the enactment of this Act. 
SEC. 523. BENEFITS UNDER THE SMALL BUSINESS BOR-
ROWER ASSISTANCE PROGRAM EXCLUDED 
FROM GROSS INCOME. 
(a) IN GENERAL.—Part III of subchapter B of chap-
ter 1 is amended by adding at the end the following new 
section: 
‘‘SEC. 139F. BENEFITS UNDER THE SMALL BUSINESS BOR-
ROWER ASSISTANCE PROGRAM. 
‘‘(a) IN GENERAL.—Gross income shall not include 
any amount paid on behalf of a borrower by the Adminis-
trator of the Small Business Administration under the 
Small Business Borrower Assistance program established 
under section 402 of the Small Business Assistance Fund 
Act of 2010 (as in effect immediately after the date of 
the enactment of such Act). 
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‘‘(b) DENIAL
OF
DOUBLE
BENEFIT.—Notwith-
standing any other provision of this subtitle, with respect 
to the person for whose benefit a payment described in 
subsection (a) is made— 
‘‘(1) INTEREST.—No deduction shall be allowed 
for interest to the extent the liability for such inter-
est is covered by such payment. 
‘‘(2) PAYMENTS OF PRINCIPAL.—If any pay-
ment is applied to reduce the principal of the loan 
to which such payment relates— 
‘‘(A) ALLOCATION AMONG FINANCED EX-
PENDITURES.—Such payment shall be allocated 
pro rata among the expenditures financed with 
such loan. 
‘‘(B) CREDITS
AND
DEDUCTIBLE
EX-
PENSES.—No deduction or credit shall be al-
lowed for, or by reason of, any such expenditure 
to the extent of the amount of the payment al-
located to such expenditure under subparagraph 
(A). 
‘‘(C) ADJUSTMENT
OF
BASIS.—The ad-
justed basis of any property acquired with such 
expenditure shall be reduced to the extent of 
the amount of the payment allocated to such 
expenditure under subparagraph (A).’’. 
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(b) CLERICAL AMENDMENTS.—The table of sections 
for part III of subchapter B of chapter 1 is amended by 
adding at the end the following new item: 
‘‘Sec. 139F. Benefits under the Small Business Borrower Assistance Pro-
gram.’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to payments made after the date 
of the enactment of this Act. 
Subtitle B—Revenue Provisions 
SEC. 531. REQUIRED MINIMUM 10-YEAR TERM, ETC., FOR 
GRANTOR RETAINED ANNUITY TRUSTS. 
(a) IN GENERAL.—Subsection (b) of section 2702 is 
amended— 
(1) by redesignating paragraphs (1), (2) and 
(3) as subparagraphs (A), (B), and (C), respectively, 
and by moving such subparagraphs (as so redesig-
nated) 2 ems to the right; 
(2) by striking ‘‘For purposes of’’ and inserting 
the following: 
‘‘(1) IN GENERAL.—For purposes of’’; 
(3) by striking ‘‘paragraph (1) or (2)’’ in para-
graph (1)(C) (as so redesignated) and inserting 
‘‘subparagraph (A) or (B)’’; and 
(4) by adding at the end the following new 
paragraph: 
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‘‘(2) ADDITIONAL
REQUIREMENTS
WITH
RE-
SPECT
TO
GRANTOR
RETAINED
ANNUITIES.—For 
purposes of subsection (a), in the case of an interest 
described in paragraph (1)(A) (determined without 
regard to this paragraph) which is retained by the 
transferor, such interest shall be treated as de-
scribed in such paragraph only if— 
‘‘(A) the right to receive the fixed amounts 
referred to in such paragraph is for a term of 
not less than 10 years, 
‘‘(B) such fixed amounts, when determined 
on an annual basis, do not decrease relative to 
any prior year during the first 10 years of the 
term referred to in subparagraph (A), and 
‘‘(C) the remainder interest has a value 
greater than zero determined as of the time of 
the transfer.’’. 
(b) EFFECTIVE DATE.—The amendments made by 
this section shall apply to transfers made after the date 
of the enactment of this Act. 
SEC. 532. CRUDE TALL OIL INELIGIBLE FOR CELLULOSIC 
BIOFUEL PRODUCER CREDIT. 
(a) IN GENERAL.—Clause (iii) of section 40(b)(6)(E) 
is amended— 
(1) by striking ‘‘or’’ at the end of subclause (I), 
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(2) by striking the period at the end of sub-
clause (II) and inserting ‘‘, or’’, 
(3) by adding at the end the following new sub-
clause: 
‘‘(III) such fuel has an acid num-
ber greater than 25.’’, and 
(4) by striking ‘‘UNPROCESSED’’ in the heading 
and inserting ‘‘CERTAIN’’. 
(b) EFFECTIVE DATE.—The amendment made by 
this section shall apply to fuels sold or used on or after 
January 1, 2010. 
SEC. 533. TIME FOR PAYMENT OF CORPORATE ESTIMATED 
TAXES. 
The percentage under paragraph (2) of section 561 
of the Hiring Incentives to Restore Employment Act in 
effect on the date of the enactment of this Act is increased 
by 7.75 percentage points. 
TITLE VI—PLAIN WRITING ACT 
SEC. 601. SHORT TITLE. 
This title may be cited as the ‘‘Plain Writing Act of 
2010’’. 
SEC. 602. PURPOSE. 
The purpose of this title is to improve the effective-
ness and accountability of Federal agencies to the public 
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by promoting clear Government communication that the 
public can understand and use. 
SEC. 603. DEFINITIONS. 
In this title: 
(1) AGENCY.—The term ‘‘agency’’ means the 
Department of the Treasury and the Small Business 
Administration. 
(2) COVERED DOCUMENT.—The term ‘‘covered 
document’’— 
(A) means any document that— 
(i) is relevant to obtaining any Fed-
eral Government benefit or service pro-
vided under title I, II, or III; 
(ii) provides information about any 
Federal Government benefit or service pro-
vided under title I, II, or III; or 
(iii) explains to the public how to com-
ply with a requirement the Federal Gov-
ernment administers or enforces under title 
I, II, or III; 
(B) includes (whether in paper or elec-
tronic form) a letter, publication, form, notice, 
or instruction; and 
(C) does not include a regulation. 
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(3) PLAIN WRITING.—The term ‘‘plain writing’’ 
means writing that the intended audience can read-
ily understand and use because that writing is clear, 
concise, well-organized, and follows other best prac-
tices of plain writing. 
SEC. 604. RESPONSIBILITIES OF FEDERAL AGENCIES. 
(a) PREPARATION FOR IMPLEMENTATION OF PLAIN 
WRITING REQUIREMENTS.— 
(1) IN
GENERAL.—Not later than 9 months 
after the date of enactment of this title, the head of 
each agency shall— 
(A) designate 1 or more senior officials 
within the agency to oversee the agency imple-
mentation of this title; 
(B) communicate the requirements of this 
title to the employees of the agency; 
(C) train employees of the agency in plain 
writing; 
(D) establish a process for overseeing the 
ongoing compliance of the agency with the re-
quirements of this title; 
(E) create and maintain a plain writing 
section of the agency’s website that is accessible 
from the homepage of the agency’s website; and 
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(F) designate 1 or more agency points-of- 
contact to receive and respond to public input 
on— 
(i) agency implementation of this title; 
and 
(ii) the agency reports required under 
section 605. 
(2) WEBSITE.—The plain writing section de-
scribed under paragraph (1)(E) shall— 
(A) inform the public of agency compliance 
with the requirements of this title; and 
(B) provide a mechanism for the agency to 
receive and respond to public input on— 
(i) agency implementation of this title; 
and 
(ii) the agency reports required under 
section 605. 
(b) REQUIREMENT TO USE PLAIN WRITING IN NEW 
DOCUMENTS.—Beginning not later than 1 year after the 
date of enactment of this title, each agency shall use plain 
writing in every covered document of the agency that the 
agency issues or substantially revises. 
(c) GUIDANCE.—In carrying out the provisions of this 
title, agencies may follow the guidance of— 
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(1) the writing guidelines developed by the 
Plain Language Action and Information Network; or 
(2) guidance provided by the head of the agen-
cy. 
SEC. 605. REPORTS TO CONGRESS. 
(a) INITIAL REPORT.—Not later than 9 months after 
the date of enactment of this title, the head of each agency 
shall publish on the plain writing section of the agency’s 
website a report that describes the agency plan for compli-
ance with the requirements of this title. 
(b) ANNUAL COMPLIANCE REPORT.—Not later than 
18 months after the date of enactment of this title, and 
annually thereafter, the head of each agency shall publish 
on the plain writing section of the agency’s website a re-
port on agency compliance with the requirements of this 
title. 
TITLE VII—SENSE OF CONGRESS 
ON AGRICULTURE AND FARM-
ING SMALL BUSINESS LOANS 
SEC. 701. SENSE OF CONGRESS. 
It is the sense of the Congress that— 
(1) agriculture operations, farms, and rural 
communities should receive equal consideration 
through lending activities for small businesses in 
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this Act, particularly small- and mid-size farms and 
agriculture operations; and 
(2) attention should be given to ensuring there 
is adequate small business credit and financing 
availability under this Act in the agriculture and 
farming sectors. 
TITLE 
VIII—SMALL 
BUSINESS 
BORROWER ASSISTANCE PRO-
GRAM 
SEC. 801. SHORT TITLE. 
This title may be cited as the ‘‘Small Business Assist-
ance Fund Act of 2010’’. 
SEC. 802. SMALL BUSINESS BORROWER ASSISTANCE PRO-
GRAM. 
(a) IN GENERAL.—The Administrator shall carry out 
a program to be called the ‘‘Small Business Borrower As-
sistance Program’’ to provide payments of principal and 
interest on qualifying small business loans. 
(b) AUTOMATIC ENROLLMENT; COMMITMENT
OF 
FUNDS.— 
(1) IN
GENERAL.—To the extent funds are 
available under the Program, each borrower that re-
ceives a qualifying small business loan after the date 
on which the Administrator issues regulations pursu-
ant to subsection (e) shall be automatically enrolled 
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in the Program, unless the borrower requests other-
wise, and the Administrator shall commit an amount 
to each borrower equal to 6 percent of the principal 
disbursed amount of such borrower’s qualifying 
small business loan. 
(2) ONE YEAR WINDOW FOR PARTICIPATING IN 
PROGRAM.—Notwithstanding paragraph (1), a bor-
rower may only be enrolled in the Program if the 
borrower is approved for a qualifying small business 
loan before the end of the 1-year period following 
the date on which the Administrator issues final reg-
ulations pursuant to subsection (e). 
(3) TERMINATION OF PARTICIPATION IN CER-
TAIN
CIRCUMSTANCES.—In any instance in which 
the Administrator determines that a borrower par-
ticipating in the Program has committed fraud or 
made a material misrepresentation related to such 
participation, the Administrator may terminate such 
borrower’s participation in the Program and ban 
such borrower from any future participation in the 
Program. 
(c) DISBURSEMENT OF FUNDS.— 
(1) IN GENERAL.—A borrower enrolled in the 
Program may submit a request for the payment of 
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committed funds by a method to be developed by the 
Administrator. 
(2) MULTIPLE DISBURSEMENTS PERMITTED.— 
A borrower enrolled in the Program may request 
multiple payments under paragraph (1), as long as 
the aggregate amount of such payments does not ex-
ceed the amount committed to such borrower under 
subsection (b). 
(d) TERMS.— 
(1) 
PAYMENTS
ONLY
TO
LENDER
OR 
SERVICER.—Payments made by the Administrator 
under the Program shall only be made to the lender 
or servicer of a qualifying small business loan to be 
applied against outstanding principal or interest, 
and may not be made to the borrower. 
(2) PROGRAM PARTICIPATION ONLY PERMITTED 
DURING FIRST 2 YEARS.— 
(A) IN GENERAL.—Payments made by the 
Administrator under the Program may only be 
made with respect to a payment of interest or 
principal due on a qualifying small business 
loan within the 2-year period following the date 
on which such loan is disbursed. 
(B) UNEXPENDED COMMITTED FUNDS.— 
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(i) IN GENERAL.—With respect to any 
funds committed to a borrower enrolled in 
the Program that remain unexpended at 
the end of the 2-year period described 
under subparagraph (A), such funds shall 
be paid to the lender or servicer of the bor-
rower’s loan and applied to the principal of 
such loan. 
(ii) EXCEPTION.—In any case in 
which the amount of committed funds that 
remain unexpended is greater than the re-
maining principal of a borrower’s loan, the 
amount of any excess shall be returned to 
the Treasury. 
(e) RULEMAKING.—Not later than 180 days after the 
date of the enactment of this section, the Administrator 
shall issue regulations necessary to carry out this section. 
(f) CONTRACTING WITH AGENTS.—The Adminis-
trator may contract with one or more entities as necessary 
to carry out the provisions of the Program. The Secretary 
of the Treasury is authorized to designate financial insti-
tutions, including any bank, savings association, or trust 
company, as financial agents of the Federal Government 
to carry out the authorities of this section, and such insti-
tutions shall perform all such reasonable duties related to 
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the Program as financial agents of the Federal Govern-
ment as the Secretary may require. In engaging any such 
third parties to carry out the Program, the Administrator 
or the Secretary shall seek to involve small businesses in 
the provision of the core direct services required under the 
engagement. 
(g) DEFINITIONS.—For purposes of this section: 
(1) ADMINISTRATOR.—The term ‘‘Adminis-
trator’’ means the Administrator of the Small Busi-
ness Administration. 
(2) PROGRAM.—The term ‘‘Program’’ means 
the Small Business Borrower Assistance Program 
established under subsection (a). 
(3) QUALIFYING SMALL BUSINESS LOAN.—The 
term ‘‘qualifying small business loan’’ means any 
loan, up to $300,000, made to a small business con-
cern and guaranteed under section 7(a) of the Small 
Business Act (15 U.S.C. 636(a)), other than a loan 
made pursuant to section 7(a)(31) of such Act, a re-
volving credit line, or any other revolving loan. 
(4) SMALL
BUSINESS
CONCERN.—The term 
‘‘small business concern’’ has the meaning given 
such term under section 3 of the Small Business Act 
(15 U.S.C. 632). 
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120 
HR 5297 PCS
(h) AUTHORIZATION OF APPROPRIATIONS.—There is 
hereby authorized to be appropriated to the Administrator 
$300,000,000 to carry out this section. 
Passed the House of Representatives June 17, 2010. 
Attest: 
LORRAINE C. MILLER, 
Clerk. 
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Calendar No. 435 
111TH CONGRESS 
2D SESSION 
H. R. 5297 
AN ACT 
To create the Small Business Lending Fund Pro-
gram to direct the Secretary of the Treasury to 
make capital investments in eligible institutions 
in order to increase the availability of credit for 
small businesses, to amend the Internal Revenue 
Code of 1986 to provide tax incentives for small 
business job creation, and for other purposes. 
JUNE 21, 2010 
Read the second time and placed on the calendar 
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