I 
111TH CONGRESS 
2D SESSION 
H. R. 4779 
To amend the Internal Revenue Code of 1986 to encourage the creation 
and growth of small business and reduce the cost of complying with 
the tax requirements. 
IN THE HOUSE OF REPRESENTATIVES 
MARCH 4, 2010 
Mr. POMEROY (for himself and Mr. MORAN of Kansas) introduced the 
following bill; which was referred to the Committee on Ways and Means 
A BILL 
To amend the Internal Revenue Code of 1986 to encourage 
the creation and growth of small business and reduce 
the cost of complying with the tax requirements. 
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 cited as the ‘‘Small Business Jobs 
and Tax Relief Act of 2010’’. 
SEC. 2. EXTEND TEMPORARY BONUS DEPRECIATION FOR 
CERTAIN PROPERTY. 
(a) EXTENSION OF SPECIAL ALLOWANCE.— 
VerDate Nov 24 2008 
05:24 Mar 05, 2010
Jkt 089200
PO 00000
Frm 00001
Fmt 6652
Sfmt 6201
E:\BILLS\H4779.IH
H4779
jbell on DSKDVH8Z91PROD with BILLS
(1) IN
GENERAL.—Paragraph (2) of section 
168(k) of the Internal Revenue Code of 1986 is 
amended— 
(A) by striking ‘‘January 1, 2011’’ and in-
serting ‘‘January 1, 2012’’, and 
(B) by striking ‘‘January 1, 2010’’ each 
place it appears and inserting ‘‘January 1, 
2011’’. 
(2) CONFORMING AMENDMENTS.— 
(A) The heading for subsection (k) of sec-
tion 168 of such Code is amended by striking 
‘‘JANUARY 1, 2010’’ and inserting ‘‘JANUARY 
1, 2011’’. 
(B) The heading for clause (ii) of section 
168(k)(2)(B) of such Code is amended by strik-
ing ‘‘PRE-JANUARY 1, 2010’’ and inserting ‘‘PRE- 
JANUARY 1, 2011’’. 
(C) Subparagraph (B) of section 168(l)(5) 
of such Code is amended by striking ‘‘January 
1, 2010’’ and inserting ‘‘January 1, 2011’’. 
(D) Subparagraph (C) of section 168(n)(2) 
of such Code is amended by striking ‘‘January 
1, 2010’’ and inserting ‘‘January 1, 2011’’. 
(E) 
Subparagraph 
(B) 
of 
section 
1400N(d)(3) of such Code is amended by strik-
VerDate Nov 24 2008 
05:24 Mar 05, 2010
Jkt 089200
PO 00000
Frm 00002
Fmt 6652
Sfmt 6201
E:\BILLS\H4779.IH
H4779
jbell on DSKDVH8Z91PROD with BILLS
ing ‘‘January 1, 2010’’ and inserting ‘‘January 
1, 2011’’. 
(b) EXTENSION OF ELECTION TO ACCELERATE THE 
AMT AND RESEARCH CREDITS IN LIEU OF BONUS DE-
PRECIATION.—Section 168(k)(4) of such Code (relating to 
election to accelerate the AMT and research credits in lieu 
of bonus depreciation) is amended— 
(1) by striking ‘‘2009’’ and inserting ‘‘2010’’ in 
subparagraph (D)(iii) (as redesignated by subsection 
(a)(3)), and 
(2) by adding at the end the following new sub-
paragraph: 
‘‘(I) SPECIAL
RULES
FOR
EXTENSION 
PROPERTY.— 
‘‘(i) 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— 
‘‘(I) the taxpayer may elect not 
to have this paragraph apply to exten-
sion property, but 
‘‘(II) if the taxpayer does not 
make the election under subclause (I), 
in applying this paragraph to the tax-
VerDate Nov 24 2008 
22:14 Mar 05, 2010
Jkt 089200
PO 00000
Frm 00003
Fmt 6652
Sfmt 6201
E:\BILLS\H4779.IH
H4779
jbell on DSKDVH8Z91PROD with BILLS
payer a separate bonus depreciation 
amount, maximum amount, and max-
imum increase amount shall be com-
puted and applied to eligible qualified 
property which is extension property 
and to eligible qualified property 
which is not extension property. 
‘‘(ii) TAXPAYERS
NOT
PREVIOUSLY 
ELECTING ACCELERATION.—In the case of 
a taxpayer who did not make the election 
under subparagraph (A) for its first tax-
able year ending after March 31, 2008— 
‘‘(I) the taxpayer may elect to 
have this paragraph apply to its first 
taxable year ending after December 
31, 2009, and each subsequent tax-
able year, and 
‘‘(II) if the taxpayer makes the 
election under subclause (I), this 
paragraph shall only apply to eligible 
qualified property which is extension 
property. 
‘‘(iii) EXTENSION
PROPERTY.—For 
purposes of this subparagraph, the term 
‘extension property’ means property which 
VerDate Nov 24 2008 
05:24 Mar 05, 2010
Jkt 089200
PO 00000
Frm 00004
Fmt 6652
Sfmt 6201
E:\BILLS\H4779.IH
H4779
jbell on DSKDVH8Z91PROD with BILLS
is eligible qualified property solely by rea-
son of the extension of the application of 
the special allowance under paragraph (1) 
pursuant to the amendments made by sec-
tion 3(a) of the Small Business Jobs and 
Tax Relief Act of 2010 (and the applica-
tion of such extension to this paragraph 
pursuant to the amendment made by sec-
tion 3(b)(1) of such Act). 
‘‘(b) LIMITATION.—The amount taken into account 
under subsection (a) shall not exceed $1,500 for each vehi-
cle on which an idling reduction device is affixed.’’. 
(c) EFFECTIVE DATES.—The amendments made by 
this section shall apply to property placed in service after 
December 31, 2009, in taxable years ending after such 
date. 
SEC. 3. INCREASE IN AMOUNT ALLOWED AS DEDUCTION 
FOR START-UP EXPENDITURES. 
(a) IN GENERAL.—Subsection (b) of section 195 of 
the Internal Revenue Code of 1986 is amended by adding 
at the end the following: 
‘‘(3) SPECIAL RULE FOR TAXABLE YEARS BE-
GINNING IN 2009, 2010, OR 2011.—In the case of a 
taxable year beginning in 2010, 2011, or 2012, 
paragraph (1)(A)(ii) shall be applied— 
VerDate Nov 24 2008 
05:24 Mar 05, 2010
Jkt 089200
PO 00000
Frm 00005
Fmt 6652
Sfmt 6201
E:\BILLS\H4779.IH
H4779
jbell on DSKDVH8Z91PROD with BILLS
‘‘(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 amounts paid or incurred in tax-
able years beginning after the date of the enactment of 
this Act. 
SEC. 4. REMOVAL OF CELLULAR TELEPHONES (OR SIMILAR 
TELECOMMUNICATIONS EQUIPMENT) FROM 
LISTED PROPERTY. 
(a) IN GENERAL.—Subparagraph (A) of section 
280F(d)(4) of the Internal Revenue Code (defining listed 
property) is amended by inserting ‘‘and’’ at the end of 
clause (iv), by striking clause (v), and by redesignating 
clause (vi) as clause (v). 
(b) EFFECTIVE DATE.—The amendment made by 
subsection (a) shall apply to taxable years beginning after 
January 1, 2009. 
VerDate Nov 24 2008 
05:24 Mar 05, 2010
Jkt 089200
PO 00000
Frm 00006
Fmt 6652
Sfmt 6201
E:\BILLS\H4779.IH
H4779
jbell on DSKDVH8Z91PROD with BILLS
SEC. 5. NONRECOURSE SMALL BUSINESS INVESTMENT 
COMPANY LOANS FROM THE SMALL BUSI-
NESS 
ADMINISTRATION 
TREATED 
AS 
AMOUNTS AT RISK. 
(a) IN GENERAL.—Subparagraph (B) of section 
465(b)(6) of the Internal Revenue Code of 1986 is amend-
ed to read as follows: 
‘‘(B) QUALIFIED
NONRECOURSE
FINANC-
ING.—For purposes of this paragraph— 
‘‘(i) IN GENERAL.—The term ‘quali-
fied nonrecourse financing’ means any fi-
nancing— 
‘‘(I) which is qualified real prop-
erty financing or qualified SBIC fi-
nancing, 
‘‘(II) except to the extent pro-
vided in regulations, with respect to 
which no person is personally liable 
for repayment, and 
‘‘(III) which is not convertible 
debt. 
‘‘(ii) QUALIFIED REAL PROPERTY FI-
NANCING.—The term ‘qualified real prop-
erty 
financing’ 
means 
any 
financing 
which— 
VerDate Nov 24 2008 
05:24 Mar 05, 2010
Jkt 089200
PO 00000
Frm 00007
Fmt 6652
Sfmt 6201
E:\BILLS\H4779.IH
H4779
jbell on DSKDVH8Z91PROD with BILLS
‘‘(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), 
‘‘(II) is secured by property used 
or held, directly or indirectly, by such 
small business investment company, 
and 
‘‘(III) is borrowed from, or guar-
anteed by, the Small Business Admin-
VerDate Nov 24 2008 
05:24 Mar 05, 2010
Jkt 089200
PO 00000
Frm 00008
Fmt 6652
Sfmt 6201
E:\BILLS\H4779.IH
H4779
jbell on DSKDVH8Z91PROD with BILLS
istration under the authority of sec-
tion 303(b) of such Act.’’. 
(b) CONFORMING AMENDMENTS.—Subparagraph (A) 
of section 465(b)(6) of such Code 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 taxable years beginning after 
the date of the enactment of this Act. 
SEC. 6. TEMPORARY EXCLUSION OF 100 PERCENT OF GAIN 
ON CERTAIN SMALL BUSINESS STOCK. 
(a) IN GENERAL.—Subsection (a) of section 1202 of 
the Internal Revenue Code of 1986 (relating partial exclu-
sion for gain from certain small business stock) is amend-
ed by adding at the end the following new paragraph: 
‘‘(4) 100 EXCLUSION
FOR
STOCK
ACQUIRED 
DURING 2010.—In the case of qualified small busi-
ness stock acquired during 2010— 
‘‘(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.’’. 
VerDate Nov 24 2008 
05:24 Mar 05, 2010
Jkt 089200
PO 00000
Frm 00009
Fmt 6652
Sfmt 6201
E:\BILLS\H4779.IH
H4779
jbell on DSKDVH8Z91PROD with BILLS
(b) CONFORMING AMENDMENT.—Paragraph (3) of 
section 1202 (a) of such Code is amended— 
(1) by striking ‘‘AND 2010’’ in the heading, and 
(2) by striking ‘‘January 1, 2011’’ and insert-
ing ‘‘January 1, 2010’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to stock acquired after December 
31, 2009. 
Æ 
VerDate Nov 24 2008 
05:24 Mar 05, 2010
Jkt 089200
PO 00000
Frm 00010
Fmt 6652
Sfmt 6301
E:\BILLS\H4779.IH
H4779
jbell on DSKDVH8Z91PROD with BILLS