I 
109TH CONGRESS 
2D SESSION 
H. R. 5368 
To amend the Internal Revenue Code of 1986 to provide for small business 
tax incentives, to amend the Fair Labor Standards Act of 1938 to 
increase the minimum wage and to increase the exemption for annual 
gross volume of sales made or business done by an enterprise, and 
for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
MAY 11, 2006 
Mr. ENGLISH of Pennsylvania (for himself, Mr. SIMMONS, and Mr. WELDON 
of Pennsylvania) introduced the following bill; which was referred to the 
Committee on Ways and Means, and in addition to the Committee on 
Education and the Workforce, for a period to be subsequently determined 
by the Speaker, in each case for consideration of such provisions as fall 
within the jurisdiction of the committee concerned 
A BILL 
To amend the Internal Revenue Code of 1986 to provide 
for small business tax incentives, to amend the Fair 
Labor Standards Act of 1938 to increase the minimum 
wage and to increase the exemption for annual gross 
volume of sales made or business done by an enterprise, 
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. SMALL BUSINESS TAX INCENTIVES. 
(a) INCREASE IN SECTION 179 EXPENSING.— 
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(1) INCREASE
IN
DOLLAR
LIMITATION
MADE 
PERMANENT.—Paragraph (1) of section 179(b) of 
the Internal Revenue Code of 1986 (relating to dol-
lar limitation) is amended by striking ‘‘$25,000 
($100,000 in the case of taxable years beginning 
after 2002 and before 2008)’’ and inserting 
‘‘$100,000’’. 
(2) INCREASE IN THRESHOLD FOR REDUCTION 
OF DOLLAR LIMITATION.—Paragraph (2) of section 
179(b) of such Code (relating to reduction in limita-
tion) is amended by striking ‘‘$200,000 ($400,000 
in the case of taxable years beginning after 2002 
and before 2008)’’ and inserting ‘‘$500,000’’. 
(3) INFLATION ADJUSTMENT.—Paragraph (5) 
of section 179(b) of such Code (relating to inflations 
adjustments) is amended to read as follows: 
‘‘(5) INFLATION ADJUSTMENTS.— 
‘‘(A) DOLLAR LIMITATION.—In the case of 
any taxable year beginning in a calendar year 
after 2005, the $100,000 amount in paragraph 
(1) shall be increased by an amount equal to— 
‘‘(i) such dollar amount, multiplied by 
‘‘(ii) the cost-of-living adjustment 
under section 1(f)(3) for the calendar year 
in which the taxable year begins deter-
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mined by substituting ‘calendar year 2002’ 
for ‘calendar year 1992’ in subparagraph 
(B) thereof. 
‘‘(B) PHASEOUT AMOUNT.—In the case of 
any taxable year beginning in a calendar year 
after 2006, the $500,000 amount in paragraph 
(2) shall be increased by an amount equal to— 
‘‘(i) such dollar amount, multiplied by 
‘‘(ii) the cost-of-living adjustment 
under section 1(f)(3) for the calendar year 
in which the taxable year begins deter-
mined by substituting ‘calendar year 2005’ 
for ‘calendar year 1992’ in subparagraph 
(B) thereof. 
‘‘(C) ROUNDING.— 
‘‘(i) DOLLAR
LIMITATION.—If the 
amount in paragraph (1) as increased 
under subparagraph (A) is not a multiple 
of $1,000, such amount shall be rounded 
to the nearest multiple of $1,000. 
‘‘(ii) PHASEOUT
AMOUNT.—If the 
amount in paragraph (2) as increased 
under subparagraph (B) is not a multiple 
of $10,000, such amount shall be rounded 
to the nearest multiple of $10,000.’’. 
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(4) EFFECTIVE DATE.—The amendments made 
by this subsection shall apply to taxable years begin-
ning after December 31, 2005. 
(b) WORK OPPORTUNITY CREDIT, WELFARE-TO- 
WORK
CREDIT, 
AND
RESEARCH
CREDIT
ALLOWED 
AGAINST ALTERNATIVE MINIMUM TAX.— 
(1) IN GENERAL.—Subparagraph (B) of section 
38(c)(4) of the Internal Revenue Code of 1986 is 
amended by striking the period at the end of clause 
(ii)(II) and inserting a comma and by adding at the 
end the following new clauses: 
‘‘(iii) the credit determined under sec-
tion 51, 
‘‘(iv) the credit determined under sec-
tion 51A, and 
‘‘(v) the credit determined under sec-
tion 41.’’. 
(2) EFFECTIVE DATE.—The amendments made 
by this subsection shall apply to taxable years begin-
ning after December 31, 2005. 
SEC. 2. STANDARD HOME OFFICE DEDUCTION. 
(a) IN GENERAL.—Subsection (c) of section 280A of 
the Internal Revenue Code of 1986 (relating to disallow-
ance of certain expenses in connection with business use 
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of home, rental of vacation homes, etc.) is amended by 
adding at the end the following new paragraph: 
‘‘(7) STANDARD HOME OFFICE DEDUCTION.—If 
the taxpayer elects (at such time and in such form 
and manner as the Secretary may prescribe) to have 
this paragraph apply for any taxable year, in the 
case of a use described in paragraph (1), (2), or (4), 
and in the case of a use described in paragraph (3) 
where the dwelling unit is used by the taxpayer dur-
ing the taxable year as a residence— 
‘‘(A) there shall be allowed as a deduction 
an amount equal to $2,500, and 
‘‘(B) no deduction otherwise allowable 
under this chapter shall be allowed with respect 
to such use.’’. 
(b) EFFECTIVE DATE.—The amendment made by 
this section shall apply to taxable years beginning after 
the date of the enactment of this Act. 
SEC. 3. MINIMUM WAGE PROVISIONS. 
(a) EXEMPTION FOR SMALL EMPLOYERS.— 
(1) IN GENERAL.—Section 6 of the Fair Labor 
Standards Act of 1938 (29 U.S.C. 206) is amend-
ed— 
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(A) in subsection (a), by inserting after 
‘‘Every employer’’ the following: ‘‘who employs 
ten or more employees’’; and 
(B) in subsection (b), by inserting after 
‘‘Every employer’’ the following: ‘‘who employs 
ten or more employees’’. 
(2) EFFECTIVE DATE.—The amendments made 
by this subsection shall apply beginning October 1, 
2006. 
(b) PHASED INCREASE.—Section 6(a) of such Act 
(29 U.S.C. 206(a)) is amended by striking paragraph (1) 
and inserting the following new paragraph: 
‘‘(1) except as otherwise provided in this sec-
tion, not less than $5.15 an hour through the period 
ending September 30, 2006, not less than $6.00 an 
hour during the year beginning October 1, 2006, not 
less than $6.50 an hour during the year beginning 
October 1, 2007, not less than $7.00 an hour begin-
ning October 1, 2008, and not less than $7.50 an 
hour beginning October 1, 2009;’’. 
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SEC. 4. INCREASED EXEMPTION FOR ANNUAL GROSS VOL-
UME OF SALES MADE OR BUSINESS DONE BY 
AN ENTERPRISE. 
Section 3(s)(1)(A)(ii) of the Fair Labor Standards 
Act of 1938 (29 U.S.C. 203(s)(1)(A)(ii)) is amended to 
read as follows: 
‘‘(ii) is an enterprise whose gross volume 
of sales made or business done during the tax-
able year (exclusive of excise taxes at the retail 
level that are separately stated) is not less than 
$500,000 in the case of taxable years ending 
before October 1, 2006, not less than $650,000 
in the case of taxable years ending during the 
year beginning October 1, 2006, not less than 
$800,000 in the case of taxable years ending 
during the year beginning October 1, 2007, and 
not less than $1,000,000 in the case of taxable 
years ending after September 30, 2008;’’. 
SEC. 5. EARNED INCOME EXCLUSION UNDER THE SSI PRO-
GRAM. 
(a) IN GENERAL.—Section 1612(b) of the Social Se-
curity Act (42 U.S.C. 1382a(b)) is amended— 
(1) by striking ‘‘and’’ at the end of paragraph 
(22); 
(2) by striking the period at the end of para-
graph (23) and inserting ‘‘; and’’; and 
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(3) by adding at the end the following: 
‘‘(24)(A) if such individual does not have an eli-
gible spouse, the amount (if any) by which the min-
imum wage rate in effect for the month under sec-
tion 6 of the Fair Labor Standards Act of 1938 
multiplied by the number of hours for which such in-
dividual is gainfully employed during the month ex-
ceeds the total amount of earned income of such in-
dividual excluded by the preceding provisions of this 
subsection for the month; or 
‘‘(B) if such individual has an eligible spouse, 
the amount (if any) by which the minimum wage 
rate in effect for the month under section 6 of the 
Fair Labor Standards Act of 1938 multiplied by the 
total number of hours for which such individual and 
such spouse are gainfully employed during the 
month exceeds the total amount of earned income of 
such individual and such spouse excluded by the pre-
ceding provisions of this subsection for the month.’’. 
(b) EFFECTIVE DATE.—The amendments made by 
subsection (a) shall take effect on October 1, 2006, and 
shall apply to benefits for months beginning on or after 
such date. 
Æ 
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