I 
112TH CONGRESS 
1ST SESSION H. R. 3476 
To provide incentives for economic growth, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
NOVEMBER 18, 2011 
Mr. HANNA (for himself and Mr. KEATING) introduced the following bill; 
which was referred to the Committee on Ways and Means, and in addi-
tion to the Committees on the Judiciary and Financial Services, for a pe-
riod to be subsequently determined by the Speaker, in each case for con-
sideration of such provisions as fall within the jurisdiction of the com-
mittee concerned 
A BILL 
To provide incentives for economic growth, 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. SHORT TITLE; TABLE OF CONTENTS. 
(a) SHORT TITLE.—This Act may be cited as the 
‘‘American Growth, Recovery, Empowerment, and Entre-
preneurship Act’’ or the ‘‘AGREE Act’’. 
(b) TABLE OF CONTENTS.—The table of contents for 
this Act is as follows: 
Sec. 1. Short title; table of contents. 
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TITLE I—EXTENDING TAX RELIEF FOR SMALL BUSINESSES 
Sec. 101. Extension of bonus depreciation; temporary 100 percent expensing 
for certain business assets. 
Sec. 102. Extension of increased expensing limitations and treatment of certain 
real property as section 179 property. 
Sec. 103. Temporary exclusion of 100 percent of gain on certain small business 
stock. 
TITLE II—ENCOURAGING CUTTING-EDGE RESEARCH AND 
INNOVATION 
Sec. 201. Extension of research credit; alternative simplified research credit in-
creased and made permanent. 
Sec. 202. Enhanced research credit for domestic manufacturers. 
TITLE III—PROVIDING COMMON-SENSE TAX INCENTIVES FOR 
VETERANS 
Sec. 301. Veterans franchise fee credit. 
Sec. 302. Publication of information by Department of Veterans Affairs and 
Small Business Administration. 
TITLE IV—REGULATORY RELIEF FOR SMALL COMPANIES 
Sec. 401. Exemption from the internal control reporting and assessment re-
quirements. 
TITLE V—REDUCING BARRIERS TO HIGH-SKILLED LEGAL 
IMMIGRATION 
Sec. 501. Numerical limitation to any single foreign state. 
TITLE VI—PROTECTING AMERICAN BUSINESS AGAINST ILLEGAL 
COUNTERFEITING 
Sec. 601. Preventing the importation of counterfeit products and infringing de-
vices. 
TITLE I—EXTENDING TAX 
RELIEF FOR SMALL BUSINESSES 
SEC. 101. EXTENSION OF BONUS DEPRECIATION; TEM-
PORARY 100 PERCENT EXPENSING FOR CER-
TAIN BUSINESS ASSETS. 
(a) IN GENERAL.—Paragraph (2) of section 168(k) 
of the Internal Revenue Code of 1986 is amended— 
(1) by striking ‘‘January 1, 2014’’ in subpara-
graph (A)(iv) and inserting ‘‘January 1, 2016’’, and 
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(2) by striking ‘‘January 1, 2013’’ each place 
it appears and inserting ‘‘January 1, 2015’’. 
(b) TEMPORARY 100 PERCENT EXPENSING.—Para-
graph (5) of section 168(k) of the Internal Revenue Code 
of 1986 is amended— 
(1) by striking ‘‘2013’’ and inserting ‘‘2016’’, 
and 
(2) by striking ‘‘2012’’ each place it appears in 
the text and heading and inserting ‘‘2015’’. 
(c) EXTENSION OF ELECTION TO ACCELERATE THE 
AMT CREDIT IN LIEU OF BONUS DEPRECIATION.— 
(1) IN
GENERAL.—Subclause (II) of section 
168(k)(4)(D)(iii) of the Internal Revenue Code of 
1986 is amended by striking ‘‘2013’’ and inserting 
‘‘2015’’. 
(2) ROUND
EXTENSION
PROPERTY.—Para-
graph (4) of section 168(k) of such Code is amended 
by adding at the end the following new subpara-
graph: 
‘‘(J) SPECIAL RULES FOR ROUND 3 EX-
TENSION PROPERTY.— 
‘‘(i) IN
GENERAL.—In the case of 
round 3 extension property, this paragraph 
shall be applied without regard to— 
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‘‘(I) the limitation described in 
subparagraph (B)(i) thereof, and 
‘‘(II) the business credit increase 
amount under subparagraph (E)(iii) 
thereof. 
‘‘(ii) TAXPAYERS PREVIOUSLY ELECT-
ING ACCELERATION.—In the case of a tax-
payer who made the election under sub-
paragraph (A) for its first taxable year 
ending after March 31, 2008, a taxpayer 
who made the election under subparagraph 
(H)(ii) for its first taxable year ending 
after December 31, 2008, or a taxpayer 
who made the election under subparagraph 
(I)(iii) for its first taxable year ending 
after December 31, 2010— 
‘‘(I) the taxpayer may elect not 
to have this paragraph apply to round 
3 extension property, but 
‘‘(II) if the taxpayer does not 
make the election under subclause (I), 
in applying this paragraph to the tax-
payer the bonus depreciation amount, 
maximum amount, and maximum in-
crease amount shall be computed and 
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(f) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2011. 
SEC. 103. TEMPORARY EXCLUSION OF 100 PERCENT OF 
GAIN ON CERTAIN SMALL BUSINESS STOCK. 
(a) IN GENERAL.—Paragraph (4) of section 1202(a) 
of the Internal Revenue Code of 1986 is amended— 
(1) by striking ‘‘January 1, 2012’’ and insert-
ing ‘‘January 1, 2015’’, and 
(2) by striking ‘‘AND
2011’’ in the heading 
thereof and inserting ‘‘, 2011, 2012, 2013, AND 2014’’. 
(b) EFFECTIVE DATE.—The amendments made by 
this section shall apply to stock acquired after December 
31, 2011. 
TITLE 
II—ENCOURAGING 
CUT-
TING-EDGE RESEARCH AND 
INNOVATION 
SEC. 201. EXTENSION OF RESEARCH CREDIT; ALTERNATIVE 
SIMPLIFIED RESEARCH CREDIT INCREASED 
AND MADE PERMANENT. 
(a) EXTENSION OF CREDIT.— 
(1) IN GENERAL.—Subparagraph (B) of section 
41(h)(1) of the Internal Revenue Code of 1986 is 
amended by striking ‘‘December 31, 2011’’ and in-
serting ‘‘December 31, 2012’’. 
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(2) CONFORMING AMENDMENT.—Subparagraph 
(D) of section 45C(b)(1) of such Code is amended 
by striking ‘‘December 31, 2011’’ and inserting 
‘‘December 31, 2012’’. 
(3) EFFECTIVE DATE.—The amendments made 
by this subsection shall apply to amounts paid or in-
curred after December 31, 2011. 
(b) ALTERNATIVE SIMPLIFIED RESEARCH CREDIT 
INCREASED AND MADE PERMANENT.— 
(1) INCREASED CREDIT.—Subparagraph (A) of 
section 41(c)(5) of the Internal Revenue Code of 
1986 is amended by striking ‘‘14 percent (12 per-
cent in the case of taxable years ending before Janu-
ary 1, 2009)’’ and inserting ‘‘20 percent’’. 
(2) CREDIT MADE PERMANENT.— 
(A) IN GENERAL.—Subsection (h) of sec-
tion 41 of such Code is amended by redesig-
nating the paragraph (2) relating to computa-
tion of taxable year in which credit terminates 
as paragraph (4) and by inserting before such 
paragraph the following new paragraph: 
‘‘(3) TERMINATION NOT TO APPLY TO ALTER-
NATIVE SIMPLIFIED CREDIT.—Paragraph (1) shall 
not apply to the credit determined under subsection 
(c)(5).’’. 
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(B) 
CONFORMING
AMENDMENT.—Para-
graph (4) of section 41(h) of such Code, as re-
designated by subparagraph (A), is amended to 
read as follows: 
‘‘(4) COMPUTATION
FOR
TAXABLE
YEAR
IN 
WHICH CREDIT TERMINATES.—In the case of any 
taxable year with respect to which this section ap-
plies to a number of days which is less than the total 
number of days in such taxable year, the amount de-
termined under subsection (c)(1)(B) with respect to 
such taxable year shall be the amount which bears 
the same ratio to such amount (determined without 
regard to this paragraph) as the number of days in 
such taxable year to which this section applies bears 
to the total number of days in such taxable year.’’. 
(3) EFFECTIVE DATE.—The amendments made 
by this subsection shall apply to taxable years end-
ing after December 31, 2010. 
SEC. 202. ENHANCED RESEARCH CREDIT FOR DOMESTIC 
MANUFACTURERS. 
(a) IN GENERAL.—Section 41, as amended by section 
201, of the Internal Revenue Code of 1986 is amended 
by redesignating subsection (h) as subsection (i) and by 
inserting after subsection (f) the following new subsection: 
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‘‘(g) ENHANCED CREDIT FOR DOMESTIC MANUFAC-
TURERS.— 
‘‘(1) IN GENERAL.—In the case of a qualified 
domestic manufacturer, this section shall be applied 
by increasing the 20 percent amount in subsection 
(a)(1) by the bonus amount. 
‘‘(2) QUALIFIED DOMESTIC MANUFACTURER.— 
For purposes of this subsection— 
‘‘(A) IN
GENERAL.—The term ‘qualified 
domestic manufacturer’ means a taxpayer who 
has domestic production gross receipts which 
are more than 50 percent of total production 
gross receipts. 
‘‘(B) DOMESTIC PRODUCTION GROSS RE-
CEIPTS.—The term ‘domestic production gross 
receipts’ has the meaning given to such term 
under section 199(c)(4). 
‘‘(C) TOTAL
PRODUCTION
GROSS
RE-
CEIPTS.—The term ‘total production gross re-
ceipts’ means the gross receipts of the taxpayer 
which are described in section 199(c)(4), deter-
mined— 
‘‘(i) without regard to whether prop-
erty described in subparagraph (A)(i)(I) or 
(A)(i)(III) thereof was manufactured, pro-
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duced, grown, or extracted in the United 
States, 
‘‘(ii) by substituting ‘any property de-
scribed in section 168(f)(3)’ for ‘any quali-
fied film’ in subparagraph (A)(i)(II) there-
of, and 
‘‘(iii) without regard to whether any 
construction described in subparagraph 
(A)(ii) thereof or services described in sub-
paragraph (A)(iii) thereof were performed 
in the United States. 
‘‘(3) BONUS AMOUNT.—For purposes of para-
graph (1), the bonus amount shall be determined as 
follows: 
‘‘If the percentage of total production gross 
receipts which are domestic production 
gross receipts is: 
The bonus 
amount is: 
More than 50 percent and not more than 60 per-
cent.
2 percentage points 
More than 60 percent and not more than 70 per-
cent.
4 percentage points 
More than 70 percent and not more than 80 per-
cent.
6 percentage points 
More than 80 percent and not more than 90 per-
cent.
8 percentage points 
More than 90 percent ............................................
10 percentage 
points.’’. 
(b) EFFECTIVE DATE.—The amendment made by 
this section shall apply to expenditures paid or incurred 
in taxable years beginning after December 31, 2011. 
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TITLE III—PROVIDING COMMON- 
SENSE TAX INCENTIVES FOR 
VETERANS 
SEC. 301. VETERANS FRANCHISE FEE CREDIT. 
(a) IN GENERAL.—Subpart D of part IV of sub-
chapter A of chapter 1 of the Internal Revenue Code of 
1986 is amended by adding at the end the following new 
section: 
‘‘SEC. 45S. VETERANS FRANCHISE FEE CREDIT. 
‘‘(a) VETERANS FRANCHISE FEE CREDIT.— 
‘‘(1) IN GENERAL.—For purposes of section 38, 
the veterans franchise fee credit determined under 
this section for the taxable year is an amount equal 
to 25 percent of the qualified franchise fees paid or 
incurred by a veteran during the taxable year. 
‘‘(2) LIMITATION.—The amount allowed as a 
credit under paragraph (1) with respect to the pur-
chase of any franchise shall not exceed $100,000. 
‘‘(b) REDUCTION WHERE FRANCHISE NOT 100 PER-
CENT VETERAN-OWNED.—In the case of any franchise in 
which veterans do not own 100 percent of the stock or 
of the capital or profits interests of the franchise, the cred-
it under subsection (a) shall be the credit amount deter-
mined under such subsection, multiplied by the same ratio 
as— 
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‘‘(1) the stock or capital or profits interests of 
the franchise held by veterans, bears 
‘‘(2) to the total stock or capital or profits in-
terests of the franchise. 
For purposes of this subsection, the spouse of a veteran 
shall be treated as a veteran. 
‘‘(c) QUALIFIED FRANCHISE FEE.—For purposes of 
this section, the term ‘qualified franchise fee’ means any 
one-time fee required by the franchisor when entering into 
a franchise agreement with a veteran as the franchisee. 
‘‘(d) OTHER DEFINITIONS.—For purposes of this 
section, the terms ‘franchise’, ‘franchisee’, ‘franchisor’, 
and ‘franchise fee’ have the meanings given such terms 
in part 436 of title 16, Code of Federal Regulations (as 
in effect on January 1, 2009). 
‘‘(e) VETERAN.—The term ‘veteran’ has the meaning 
given such term by section 101 of title 38, United States 
Code. 
‘‘(f) ELECTION.—This section shall not apply to a 
taxpayer for any taxable year if such taxpayer elects to 
have this section not apply for such taxable year.’’. 
(b) CREDIT TO BE PART OF GENERAL BUSINESS 
CREDIT.—Section 38(b) of the Internal Revenue Code of 
1986 is amended by striking ‘‘plus’’ at the end of para-
graph (35), by striking the period at the end of paragraph 
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(36) and inserting ‘‘, plus’’, and by adding at the end the 
following new paragraph: 
‘‘(37) the veterans franchise fee credit deter-
mined under section 45S(a).’’. 
(c) CLERICAL AMENDMENT.—The table of sections 
for subpart D of part IV of subchapter A of chapter 1 
of the Internal Revenue Code of 1986 is amended by add-
ing at the end the following new item: 
‘‘Sec. 45S. Veterans franchise fee credit.’’. 
(d) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years ending after De-
cember 31, 2010. 
SEC. 302. PUBLICATION OF INFORMATION BY DEPARTMENT 
OF VETERANS AFFAIRS AND SMALL BUSI-
NESS ADMINISTRATION. 
The Administrator of the Small Business Administra-
tion and the Secretary of Veterans Affairs shall publicize 
in mailings and brochures sent to veterans service organi-
zations and veteran advocacy groups information regard-
ing discounted franchise fees under section 45S of the In-
ternal Revenue Code of 1986 and other information about 
the program established under amendments made by this 
Act. 
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TITLE IV—REGULATORY RELIEF 
FOR SMALL COMPANIES 
SEC. 401. EXEMPTION FROM THE INTERNAL CONTROL RE-
PORTING AND ASSESSMENT REQUIREMENTS. 
(a) IN GENERAL.—Section 404 of the Sarbanes- 
Oxley Act of 2002 (15 U.S.C. 7262) is amended by adding 
at the end the following: 
‘‘(d) EXEMPTION.—Subsection (b) shall not apply to 
any issuer until the earlier of— 
‘‘(1) such time as the issuer has total revenues 
of $250,000,000; and 
‘‘(2) the expiration of the 5-year period begin-
ning on the date of the initial public offering of that 
issuer.’’. 
(b) STUDY AND REPORT.— 
(1) STUDY.—The Securities and Exchange 
Commission shall conduct a study— 
(A) to determine how the Commission 
could reduce the burden of complying with sec-
tion 404(b) of the Sarbanes-Oxley Act of 2002 
for companies, the market capitalization of 
which 
is 
between 
$250,000,000 
and 
$1,000,000,000 for the relevant reporting pe-
riod while maintaining investor protections for 
such companies; and 
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(B) to assess the annual cost of compliance 
with that section 404(b) for all companies 
whose market capitalization is less than or 
equal to $1,000,000,000. 
(2) REPORT.—The Securities and Exchange 
Commission shall submit a report to Congress on 
the results of the study conducted under paragraph 
(1) not later than 9 months after the date of enact-
ment of this Act. 
TITLE V—REDUCING BARRIERS 
TO HIGH-SKILLED LEGAL IM-
MIGRATION 
SEC. 501. NUMERICAL LIMITATION TO ANY SINGLE FOR-
EIGN STATE. 
(a) IN GENERAL.—Section 202(a)(2) of the Immi-
gration and Nationality Act (8 U.S.C. 1152(a)(2)) is 
amended— 
(1) in the paragraph heading, by striking ‘‘AND 
EMPLOYMENT-BASED’’; 
(2) by striking ‘‘(3), (4), and (5),’’ and insert-
ing ‘‘(3) and (4),’’; 
(3) by striking ‘‘subsections (a) and (b) of sec-
tion 203’’ and inserting ‘‘section 203(a)’’; 
(4) by striking ‘‘7’’ and inserting ‘‘15’’; and 
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(5) by striking ‘‘such subsections’’ and inserting 
‘‘such section’’. 
(b) CONFORMING AMENDMENTS.—Section 202 of the 
Immigration and Nationality Act (8 U.S.C. 1152) is 
amended— 
(1) in subsection (a)(3), by striking ‘‘both sub-
sections (a) and (b) of section 203’’ and inserting 
‘‘section 203(a)’’; 
(2) by striking subsection (a)(5); and 
(3) by amending subsection (e) to read as fol-
lows: 
‘‘(e) SPECIAL RULES FOR COUNTRIES AT CEILING.— 
If it is determined that the total number of immigrant 
visas made available under section 203(a) to natives of 
any single foreign state or dependent area will exceed the 
numerical limitation specified in subsection (a)(2) in any 
fiscal year, in determining the allotment of immigrant visa 
numbers to natives under section 203(a), visa numbers 
with respect to natives of that state or area shall be allo-
cated (to the extent practicable and otherwise consistent 
with this section and section 203) in a manner so that, 
except as provided in subsection (a)(4), the proportion of 
the visa numbers made available under each of paragraphs 
(1) through (4) of section 203(a) is equal to the ratio of 
the total number of visas made available under the respec-
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tive paragraph to the total number of visas made available 
under section 203(a).’’. 
(c) COUNTRY-SPECIFIC OFFSET.—Section 2 of the 
Chinese Student Protection Act of 1992 (8 U.S.C. 1255 
note) is amended— 
(1) in subsection (a), by striking ‘‘subsection 
(e))’’ and inserting ‘‘subsection (d))’’; and 
(2) by striking subsection (d) and redesignating 
subsection (e) as subsection (d). 
(d) EFFECTIVE DATE.—The amendments made by 
this section shall take effect as if enacted on September 
30, 2011, and shall apply to fiscal years beginning with 
fiscal year 2012. 
(e) TRANSITION RULES FOR EMPLOYMENT-BASED 
IMMIGRANTS.— 
(1) IN
GENERAL.—Subject to the succeeding 
paragraphs of this subsection and notwithstanding 
title II of the Immigration and Nationality Act (8 
U.S.C. 1151 et seq.), the following rules shall apply: 
(A) For fiscal year 2012, 15 percent of the 
immigrant visas made available under each of 
paragraphs (2) and (3) of section 203(b) of 
such Act (8 U.S.C. 1153(b)) shall be allotted to 
immigrants who are natives of a foreign state 
or dependent area that was not one of the two 
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