I 
112TH CONGRESS 
2D SESSION 
H. R. 6102 
To amend the Internal Revenue Code of 1986 to provide tax relief for 
small businesses, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
JULY 11, 2012 
Mr. GERLACH (for himself and Mr. KIND) 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 provide 
tax relief for small businesses, 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; ETC. 
(a) SHORT TITLE.—This Act may be cited as the 
‘‘America’s Small Business Tax Relief Act of 2012’’. 
(b) REFERENCES.—Except as otherwise expressly 
provided, whenever in this Act an amendment or repeal 
is expressed in terms of an amendment to, or repeal of, 
a section or other provision, the reference shall be consid-
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ered to be made to a section or other provision of the In-
ternal Revenue Code of 1986. 
(c) TABLE OF CONTENTS.—The table of contents for 
this Act is as follows: 
Sec. 1. Short title; etc. 
Sec. 2. 100-Percent exclusion of gain on certain small business stock made per-
manent. 
Sec. 3. 5-Year carryback of general business credits of eligible small businesses 
made permanent. 
Sec. 4. Alternative minimum tax rules for general business credits of eligible 
small businesses made permanent. 
Sec. 5. Reduction in recognition period for built-in gains tax made permanent. 
Sec. 6. Increased expensing limitations and treatment of certain real property 
as section 179 property made permanent. 
Sec. 7. Special rule for long-term contract accounting made permanent. 
Sec. 8. Increase of amount allowed as a deduction for start-up expenditures 
made permanent. 
Sec. 9. Allowance of deduction for health insurance in computing self-employ-
ment taxes made permanent. 
SEC. 2. 100-PERCENT EXCLUSION OF GAIN ON CERTAIN 
SMALL BUSINESS STOCK MADE PERMANENT. 
(a) IN GENERAL.—Paragraph (4) of section 1202(a) 
is amended— 
(1) by striking ‘‘after the date of the enactment 
of the Creating Small Business Jobs Act of 2010 
and before January 1, 2012’’ and inserting ‘‘after 
September 27, 2010’’, and 
(2) by striking ‘‘DURING CERTAIN PERIODS IN 
2010 AND 2011’’ and inserting ‘‘AFTER SEPTEMBER 
27, 2010’’ in the heading thereof. 
(b) EFFECTIVE DATE.—The amendments made by 
this section shall apply to stock acquired after December 
31, 2011. 
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SEC. 3. 5-YEAR CARRYBACK OF GENERAL BUSINESS CRED-
ITS OF ELIGIBLE SMALL BUSINESSES MADE 
PERMANENT. 
(a) IN GENERAL.—Subparagraph (A) of section 
39(a)(4) is amended by striking ‘‘determined in the first 
taxable year of the taxpayer beginning in 2010’’. 
(b) EFFECTIVE DATE.—The amendment made by 
this section shall apply to credits determined in taxable 
years beginning after December 31, 2011. 
SEC. 4. ALTERNATIVE MINIMUM TAX RULES FOR GENERAL 
BUSINESS 
CREDITS 
OF 
ELIGIBLE 
SMALL 
BUSINESSES MADE PERMANENT. 
(a) IN GENERAL.—Paragraph (5) of section 38(c) is 
amended— 
(1) by striking ‘‘determined in taxable years be-
ginning in 2010’’ in subparagraph (A), and 
(2) by striking ‘‘IN 2010’’ in the heading of such 
paragraph. 
(b) EFFECTIVE DATE.—The amendments made by 
this section shall apply to credits determined in taxable 
years beginning after December 31, 2011, and to 
carrybacks of such credits. 
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SEC. 5. REDUCTION IN RECOGNITION PERIOD FOR BUILT- 
IN GAINS TAX MADE PERMANENT. 
(a) IN GENERAL.—Subparagraph (A) of section 
1374(d)(7) is amended by striking ‘‘10-year period’’ and 
inserting ‘‘5-year period’’. 
(b) CONFORMING AMENDMENTS.— 
(1) Paragraph (7) of section 1374(d) is amend-
ed by striking subparagraph (B) and by redesig-
nating subparagraph (C) as subparagraph (B). 
(2) Subparagraph (B) of section 1374(d), as re-
designated by paragraph (1), is amended by striking 
‘‘section 953(e)—’’ and all that follows and inserting 
‘‘section 953(e), subparagraph (A) shall be applied 
without regard to the phrase ‘5-year’.’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2011. 
SEC. 6. INCREASED EXPENSING LIMITATIONS AND TREAT-
MENT OF CERTAIN REAL PROPERTY AS SEC-
TION 179 PROPERTY MADE PERMANENT. 
(a) IN GENERAL.—Subsection (b) of section 179 is 
amended— 
(1) by striking ‘‘shall not exceed—’’ and all 
that follows in paragraph (1) and inserting ‘‘shall 
not exceed $500,000.’’, 
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(2) by striking ‘‘exceeds—’’ and all that follows 
in 
paragraph 
(2) 
and 
inserting 
‘‘exceeds 
$2,000,000.’’, and 
(3) by striking paragraph (6). 
(b) COMPUTER SOFTWARE.—Clause (ii) of section 
179(d)(1)(A) is amended by striking ‘‘and which is placed 
in service in a taxable year beginning after 2002 and be-
fore 2013,’’. 
(c) ELECTION.—Paragraph (2) of section 179(c) is 
amended to read as follows: 
‘‘(2) REVOCATION OF ELECTION.—Any election 
made under this section, and any specification con-
tained in any such election, may be revoked by the 
taxpayer with respect to any property, and such rev-
ocation, once made, shall be irrevocable.’’. 
(d) SPECIAL RULES FOR TREATMENT OF QUALIFIED 
REAL PROPERTY.—Paragraph (1) of section 179(f) is 
amended by striking ‘‘beginning in 2010 or 2011’’. 
(e) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2011. 
SEC. 7. SPECIAL RULE FOR LONG-TERM CONTRACT AC-
COUNTING MADE PERMANENT. 
(a) IN GENERAL.—Subparagraph (B) of section 
460(c)(6) is amended by striking ‘‘which—’’ and all that 
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follows and inserting ‘‘which has a recovery period of 7 
years or less.’’. 
(b) EFFECTIVE DATE.—The amendment made by 
this section shall apply to property placed in service after 
December 31, 2011. 
SEC. 8. INCREASE OF AMOUNT ALLOWED AS A DEDUCTION 
FOR START-UP EXPENDITURES MADE PERMA-
NENT. 
(a) 
IN
GENERAL.—Clause 
(ii) 
of 
section 
195(b)(1)(A) is amended— 
(1) 
by 
striking 
‘‘$5,000’’ 
and 
inserting 
‘‘$10,000’’, and 
(2) by striking ‘‘$50,000’’ and inserting 
‘‘$60,000’’. 
(b) CONFORMING AMENDMENT.—Subsection (b) of 
section 195 is amended by striking paragraph (3). 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to amounts paid or incurred in tax-
able years beginning after December 31, 2011. 
SEC. 9. ALLOWANCE OF DEDUCTION FOR HEALTH INSUR-
ANCE 
IN 
COMPUTING 
SELF-EMPLOYMENT 
TAXES MADE PERMANENT. 
(a) IN GENERAL.—Paragraph (4) of section 162(l) 
is amended by striking ‘‘, or after December 31, 2010’’. 
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