IIB 
108TH CONGRESS 
2D SESSION 
H. R. 4840 
IN THE SENATE OF THE UNITED STATES 
JULY 22, 2004 
Received 
SEPTEMBER 7, 2004 
Read twice and referred to the Committee on Finance 
AN ACT 
To amend the Internal Revenue Code of 1986 to simplify 
the taxation of businesses. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
HR 4840 RFS 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Tax Simplification for 
America’s Job Creators Act of 2004’’. 
SEC. 2. 2-YEAR EXTENSION OF INCREASED EXPENSING FOR 
SMALL BUSINESS. 
Subsections (b), (c), and (d) of section 179 of the 
Internal Revenue Code of 1986 are each amended by 
striking ‘‘2006’’ each place it appears and inserting 
‘‘2008’’. 
SEC. 3. INDEXING OF GROSS RECEIPTS TEST FOR CASH 
METHOD OF ACCOUNTING. 
(a) IN GENERAL.—Section 448(c) of the Internal 
Revenue Code of 1986 is amended by adding at the end 
the following new paragraph: 
‘‘(4) INFLATION ADJUSTMENT OF GROSS RE-
CEIPTS TEST.—In the case of any taxable year be-
ginning in a calendar year after 2003, the 
$5,000,000 dollar amount in paragraph (1) shall be 
increased by an amount equal to— 
‘‘(A) such dollar amount, multiplied by 
‘‘(B) the cost-of-living adjustment deter-
mined under section 1(f)(3) for such calendar 
year by substituting ‘calendar year 2002’ for 
‘calendar year 1992’ in subparagraph (B) 
thereof.
HR 4840 RFS 
If any amount as adjusted under the preceding sentence 
is not a multiple of $100,000, such amount shall be round-
ed to the nearest multiple of $100,000.’’. 
(b) CONFORMING AMENDMENTS.— 
(1) Section 448(b)(3) of such Code is amended 
by striking ‘‘$5,000,000’’ both places it appears in 
the heading and text. 
(2) Section 448(c) of such Code is amended by 
striking ‘‘$5,000,000’’ in the heading and the first 
place it appears in paragraph (1) thereof. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2003. 
SEC. 4. SIMPLIFICATION THROUGH ELIMINATION OF INOP-
ERATIVE PROVISIONS. 
(a) IN GENERAL.— 
(1) GENERAL BUSINESS CREDITS.—Subsection 
(d) of section 38 of the Internal Revenue Code of 
1986 is amended by striking paragraph (3). 
(2) CARRYBACK AND CARRYFORWARD OF UN-
USED
CREDITS.—Subsection (d) of section 39 of 
such Code is amended by striking paragraphs (1) 
through (8) and by redesignating paragraphs (9) 
and (10) as paragraphs (1) and (2), respectively.
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(3) ADJUSTMENTS BASED ON ADJUSTED CUR-
RENT EARNINGS.—Clause (ii) of section 56(g)(4)(F) 
of such Code is amended by striking ‘‘In the case of 
any taxable year beginning after December 31, 
1992, clause’’ and inserting ‘‘Clause’’. 
(4) ITEMS OF TAX PREFERENCE; DEPLETION.— 
Paragraph (1) of section 57(a) of such Code is 
amended by striking ‘‘Effective with respect to tax-
able years beginning after December 31, 1992, this’’ 
and inserting ‘‘This’’. 
(5) INTANGIBLE DRILLING COSTS.— 
(A) Clause (i) of section 57(a)(2)(E) of 
such Code is amended by striking ‘‘In the case 
of any taxable year beginning after December 
31, 1992, this’’ and inserting ‘‘This’’. 
(B) Clause (ii) of section 57(a)(2)(E) of 
such Code is amended by striking ‘‘(30 percent 
in the case of taxable years beginning in 
1993)’’. 
(6) GREAT PLAINS CONSERVATION PROGRAM.— 
Section 126(a) of such Code is amended by striking 
paragraph (6) and by redesignating paragraphs (7), 
(8), (9), and (10) as paragraphs (6), (7), (8), and 
(9), respectively.