I 
109TH CONGRESS 
2D SESSION 
H. R. 5058 
To provide support for small business concerns, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
MARCH 30, 2006 
Mr. ALLEN introduced the following bill; which was referred to the Committee 
on Ways and Means, and in addition to the Committees on Small Busi-
ness, the Judiciary, and Science, 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 provide support for small business concerns, 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. 
This Act may be referred to as the ‘‘Small Business 
Investment and Promotion Act of 2006’’. 
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SEC. 2. TEMPORARY CREDIT AGAINST INCOME TAX FOR 
SMALL BUSINESSES, FARMERS, AND FISHER-
MEN TO OFFSET HIGH FUEL COSTS. 
(a) IN GENERAL.—Subpart D of part IV of sub-
chapter A of chapter 1 of the Internal Revenue Code of 
1986 (relating to business-related credits) is amended by 
inserting after section 45M the following new section: 
‘‘SEC. 45N. TEMPORARY CREDIT FOR SMALL BUSINESSES, 
FARMERS, AND FISHERMEN TO OFFSET HIGH 
FUEL COSTS. 
‘‘(a) ALLOWANCE OF CREDIT.—In the case of an eli-
gible taxpayer, the excessive fuel cost credit determined 
under this section is an amount equal to the excessive fuel 
cost paid or incurred by the taxpayer during the taxable 
year for any creditable fuel used in any trade or business 
of the taxpayer. 
‘‘(b) EXCESSIVE FUEL COST.—For purposes of this 
section— 
‘‘(1) IN
GENERAL.—The term ‘excessive fuel 
cost’ means, with respect to any creditable fuel, the 
excess (if any) of— 
‘‘(A) the amount paid or incurred by the 
taxpayer for such fuel, over 
‘‘(B) the adjusted base price for such fuel. 
‘‘(2) ADJUSTED BASE PRICE.— 
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‘‘(A) IN
GENERAL.—The term ‘adjusted 
base price’ means, with respect to any cred-
itable fuel, the amount determined by the Sec-
retary to be the applicable Labor Day 2004 
price for such fuel adjusted for inflation. 
‘‘(B) APPLICABLE PRICE.—The applicable 
Labor Day 2004 price for any fuel is the aver-
age price for such fuel for the region in which 
the taxpayer purchased such fuel (as deter-
mined using data of the Energy Information 
Agency of the Department of Energy). 
‘‘(C) INFLATION ADJUSTMENT.—The infla-
tion adjustment shall be determined under the 
principles of section 1(f); except that, the Sec-
retary shall use estimates of the monthly Con-
sumer Price Index (as defined in such section) 
where possible to more closely reflect current 
inflation. 
‘‘(c) ELIGIBLE TAXPAYER.—For purposes of this sec-
tion— 
‘‘(1) IN GENERAL.—The term ‘eligible taxpayer’ 
means any person engaged in a trade or business 
if— 
‘‘(A) such trade or business is— 
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‘‘(i) a farming business (as defined by 
section 263A(e)(4), or 
‘‘(ii) commercial fishing (as defined in 
section 3 of the Magnuson-Stevens Fishery 
Conservation and Management Act (16 
U.S.C. 1802)), or 
‘‘(B) such person is a small business. 
‘‘(2) SMALL BUSINESS.—The term ‘small busi-
ness’ means a trade or business that employs an an-
nual average of not more than 50 employees. 
‘‘(3) CREDITABLE FUEL.—The term ‘creditable 
fuel’ means— 
‘‘(A) gasoline, 
‘‘(B) diesel fuel, 
‘‘(C) heating oil, and 
‘‘(D) natural gas. 
‘‘(d) ADJUSTMENT OF STANDARD MILEAGE RATE.— 
An eligible taxpayer may elect, in lieu of the credit under 
this section, a standard mileage allowance under section 
162 equal to 60 cents for each mile traveled during the 
period described in subsection (e). The Secretary shall 
modify the standard mileage rate under the preceding sen-
tence to the extent that 60 cents does not accurately re-
flect that value of the credit under this section. 
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‘‘(e) APPLICATION OF SECTION.—This section shall 
apply to fuels purchased during the 2-year period begin-
ning on the date of the enactment of this section.’’. 
(b) CREDIT TO BE PART OF GENERAL BUSINESS 
CREDIT.—Subsection (b) of section 38 of such Code is 
amended by striking ‘‘plus’’ at the end of paragraph (25), 
by striking the period at the end of paragraph (26) and 
inserting ‘‘, plus’’, and by adding at the end the following 
new paragraph: 
‘‘(27) in the case of an eligible taxpayer (as de-
fined in section 45N(c)), the excessive fuel cost cred-
it determined under section 45N(a).’’. 
(c) CLERICAL AMENDMENT.—The table of sections 
for subpart D of part IV of subchapter A of chapter 1 
of such Code is amended by inserting after the item relat-
ing to section 45M the following new item: 
‘‘Sec. 45N. Temporary credit for small businesses, farmers, and fishermen to 
offset high fuel costs.’’. 
(d) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years ending after the 
date of the enactment of this Act. 
SEC. 3. PERMANENT EXTENSION OF RESEARCH CREDIT. 
(a) IN GENERAL.—Section 41 of the Internal Rev-
enue Code of 1986 (relating to credit for increasing re-
search activities) is amended by striking subsection (h). 
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(b) CONFORMING AMENDMENT.—Paragraph (1) of 
section 45C(b) of such Code is amended by striking sub-
paragraph (D). 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to amounts paid or incurred after 
the date of the enactment of this Act. 
SEC. 4. TREATMENT OF QUALIFIED RESTAURANT PROP-
ERTY, 
QUALIFIED 
RETAIL 
IMPROVEMENT 
PROPERTY, 
AND 
CERTAIN 
SYSTEMS 
IN-
STALLED IN NONRESIDENTIAL BUILDINGS AS 
15-YEAR PROPERTY FOR PURPOSES OF DE-
PRECIATION DEDUCTION. 
(a) QUALIFIED RESTAURANT PROPERTY.—Clause 
(v) of section 168(e)(3)(E) of the Internal Revenue Code 
of 1986 (defining 15-year property) is amended by strik-
ing ‘‘placed in service before January 1, 2006’’. 
(b) QUALIFIED RETAIL IMPROVEMENT PROPERTY 
AND CERTAIN SYSTEMS INSTALLED IN NONRESIDENTIAL 
BUILDINGS.— 
(1) 15-YEAR
RECOVERY
PERIOD.—Subpara-
graph (E) of section 168(e)(3) of the Internal Rev-
enue Code of 1986 (relating to 15-year property) is 
amended by striking ‘‘and’’ at the end of clause 
(vii), by striking the period at the end of clause (viii) 
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and inserting a comma, and by adding at the end 
the following new clauses: 
‘‘(ix) any qualified retail improvement 
property, and 
‘‘(x) any property— 
‘‘(I) which is part of a heating, 
ventilation, air conditioning, or com-
mercial refrigeration system, 
‘‘(II) which is installed on or in 
a building which is nonresidential real 
property, and 
‘‘(III) the original use of which 
commences with the taxpayer.’’. 
(2) DEFINITION.—Section 168(e) of such Code 
(relating to classification of property) is amended by 
adding at the end the following new paragraph: 
‘‘(8) QUALIFIED RETAIL IMPROVEMENT PROP-
ERTY.— 
‘‘(A) IN
GENERAL.—The term ‘qualified 
retail improvement property’ means any im-
provement to an interior portion of a building 
which is nonresidential real property if— 
‘‘(i) such portion is open to the gen-
eral public, 
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‘‘(ii) such portion is used by a trade 
or business that sells tangible personal 
property or services to the general public, 
‘‘(iii) such trade or business employs 
an annual average of not more than 50 
employees, and 
‘‘(iv) such improvement is placed in 
service more than 3 years after the date 
the building was first placed in service. 
‘‘(B) CERTAIN
IMPROVEMENTS
NOT
IN-
CLUDED.—Such term shall not include any im-
provement for which the expenditure is attrib-
utable to— 
‘‘(i) the enlargement of the building, 
‘‘(ii) any elevator or escalator, or 
‘‘(iii) the internal structural frame-
work of the building.’’. 
(3) REQUIREMENT
TO
USE
STRAIGHT
LINE 
METHOD.—Paragraph (3) of section 168(b) of such 
Code (relating to applicable depreciation method) is 
amended by adding at the end the following new 
subparagraphs: 
‘‘(I) Qualified retail improvement property 
described in subsection (e)(8). 
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‘‘(J) Property described in subsection 
(e)(3)(E)(x).’’. 
(4) ALTERNATIVE
SYSTEM.—The table con-
tained in section 168(g)(3)(B) of such Code (relat-
ing to special rule for certain property assigned to 
classes) is amended by inserting after the item relat-
ing to subparagraph (E)(viii) the following new 
items: 
‘‘(E)(ix) ................................................................................................
(E)(x) ...................................................................................................
25’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to property placed in service after 
the date of the enactment of this Act. 
SEC. 5. AUTHORIZATIONS. 
(a) ADVANCED TECHNOLOGY PROGRAM.—There are 
authorized to be appropriated to the Secretary of Com-
merce for the Advanced Technology Program under sec-
tion 28 of the National Institute of Standards and Tech-
nology Act (15 U.S.C. 278n) $140,000,000 for fiscal year 
2007 and $145,000,000 for fiscal year 2008. 
(b) SCORE.—There are authorized to be appro-
priated for the Service Corps of Retired Executives 
(SCORE) under section 8(b)(1)(B) of the Small Business 
Act (15 U.S.C. 637(b)(1)(B) $7,500,000 for fiscal year 
2007 and $8,000,000 for fiscal year 2008. 
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(c) SMALL BUSINESS DEVELOPMENT CENTERS.— 
There are authorized to be appropriated for small business 
development centers under section 21 of the Small Busi-
ness Act (15 U.S.C. 648) $137,500,000 fiscal year 2007 
and $140,000,000 for fiscal year 2008. 
(d) MANUFACTURING EXTENSION PARTNERSHIP.— 
There are authorized to be appropriated to the Secretary 
of Commerce for the Manufacturing Extension Partner-
ship program under sections 25 and 26 of the National 
Institute of Standards and Technology Act (15 U.S.C. 
278k and 278l) $115,000,000 for fiscal year 2007 and 
$120,000,000 for fiscal year 2008. 
(e) WOMEN’S BUSINESS CENTERS.—There are au-
thorized to be appropriated for the Women’s Business 
Center Program under section 29 of the Small Business 
Act (15 U.S.C. 656) $15,000,000 for fiscal year 2007 and 
$15,500,000 for fiscal year 2008. 
SEC. 6. SENSE OF CONGRESS ON FUNDING FOR SMALL 
BUSINESS PROGRAMS. 
(a) FUNDING FOR 7(a) LOAN PROGRAM.—It is the 
sense of Congress that Congress should appropriate 
$79,000,000 for offsetting the cost of borrowers partici-
pating in the loan program under section 7(a) of the Small 
Business Act (15 U.S.C. 636(a)). 
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(b) FUNDING
FOR OTHER PROGRAMS.—It is the 
sense of Congress that Congress should appropriate funds 
for the Advanced Technology Program, the Service Corps 
of Retired Executives, the Small Business Development 
Centers, the Manufacturing Extension Partnership, and 
the Women’s Business Center Program at the levels au-
thorized under section 4 of this Act. 
SEC. 7. MARKET-BASED ADJUSTMENT IN ANNUAL H-1B AND 
H-2B NONIMMIGRANT NUMERICAL LIMITA-
TIONS. 
Section 214(g) of the Immigration and Nationality 
Act (8 U.S.C. 1184(g)) is amended— 
(1) in paragraph (1)— 
(A) in the matter preceding subparagraph 
(A), by striking ‘‘(beginning with fiscal year 
1992)’’; 
(B) in subparagraph (A)— 
(i) in clause (vi), by striking ‘‘and’’ at 
the end; 
(ii) in clause (vii), by striking ‘‘suc-
ceeding fiscal year; or’’ and inserting ‘‘of 
fiscal years 2004, 2005, and 2006; and’’; 
and 
(iii) by inserting after clause (vii) the 
following new clause: 
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‘‘(viii) 85,000 in each fiscal year beginning 
with fiscal year 2007, except as provided in 
paragraph (12); or’’. 
(C) by striking subparagraph (B) and in-
serting the following subparagraph: 
‘‘(B) under section 101(a)(15)(H)(ii)(b) may 
not exceed— 
‘‘(i) 66,000 in each fiscal year before fiscal 
year 2007; and 
‘‘(ii) 85,000 in each fiscal year beginning 
with fiscal year 2007, subject to paragraph (10) 
and except as provided in paragraph (12)(D).’’; 
(2) in paragraph (10)— 
(A) by striking ‘‘limitations of paragraph 
(1)(B) shall be allocated for a fiscal year so 
that the total number of aliens subject to such 
numerical limits’’ and inserting ‘‘limitation of 
paragraph (1)(B) shall be allocated to the 
greatest extent practicable for a fiscal year so 
that the total number of aliens subject to such 
numerical limit’’; and 
(B) by striking ‘‘33,000’’ and inserting 
‘‘50 percent of the number determined under 
such paragraph’’; and 
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(3) by adding at the end the following new 
paragraph: 
‘‘(12)(A) If, as of a date before September 30 of a 
fiscal year (beginning with fiscal year 2007), the total 
number of aliens who have been issued visas or have other-
wise been provided nonimmigrant status under subpara-
graph (A) of paragraph (1) reaches the adjusted numer-
ical limitation (as defined in subparagraph (C)) for the 
fiscal year, the numerical limitation under such subpara-
graph for the remainder of the fiscal year and the numer-
ical limitation under such subparagraph for the subse-
quent fiscal year shall be adjusted as follows: If the date 
the adjusted numerical limitation was reached is in— 
‘‘(i) the first quarter of such fiscal year, 
the numerical limitation for the fiscal year shall 
be increased by 20 percent of the adjusted nu-
merical limitation of the fiscal year and the nu-
merical limitation for the subsequent fiscal year 
shall be equal to 120 percent of the adjusted 
numerical limitation for the fiscal year before 
such subsequent fiscal year; 
‘‘(ii) the second quarter of such fiscal year, 
the numerical limitation for the fiscal year shall 
be increased by 15 percent of the adjusted nu-
merical limitation of the fiscal year and the nu-
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merical limitation for the subsequent fiscal year 
shall be equal to 115 percent of the adjusted 
numerical limitation for the fiscal year before 
such subsequent fiscal year; or 
‘‘(iii) the third or fourth quarter of such 
fiscal year, the numerical limitation for the fis-
cal year shall be increased by 10 percent of the 
adjusted numerical limitation of the fiscal year 
and the numerical limitation for the subsequent 
fiscal year shall be equal to 110 percent of the 
adjusted numerical limitation for the fiscal year 
before such subsequent fiscal year. 
‘‘(B) If, as of September 30 of each fiscal year (be-
ginning with fiscal year 2008), the total number of aliens 
who have been issued visas or have otherwise been pro-
vided nonimmigrant status under subparagraph (A) of 
paragraph (1) is less than the adjusted numerical limita-
tion for the fiscal year, and if such shortfall is not due 
solely to administrative causes, including processing delays 
or delays in promulgating regulations, the numerical limi-
tation under such subparagraph for the subsequent fiscal 
year shall be equal to 90 percent of the adjusted numerical 
limitation for the fiscal year before such subsequent fiscal 
year. 
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‘‘(C) For purposes of this paragraph, the term ‘ad-
justed numerical limitation’ means, with respect to a fiscal 
year, the numerical limitation specified in paragraph 
(1)(A) for the fiscal year as adjusted under subparagraphs 
(A) and (B) as of October 1 of the fiscal year. 
‘‘(D) The provisions of subparagraphs (A) through 
(C) shall apply with respect to subparagraph (B) of para-
graph (1) for a fiscal year in the same manner as they 
apply to subparagraph (A) of such paragraph for such fis-
cal year.’’. 
SEC. 8. SMALL BUSINESS CONTRACTING GOAL. 
(a) APPLICATION TO CONTRACTS PERFORMED OVER-
SEAS.—Section 15(g)(1) of the Small Business Act (15 
U.S.C.) is amended in the second sentence by inserting 
‘‘(including awards for contracts performed outside the 
United States)’’ after ‘‘all prime contract awards’’. 
(b) EFFECTIVE DATE.—The amendment made by 
subsection (a) shall apply with respect to fiscal years be-
ginning after September 30, 2006. 
Æ 
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