I
107TH CONGRESS
1ST SESSION
H. R. 3159
To amend the Internal Revenue Code of 1986 and the Office of Federal
Procurement Policy Act to provide economic benefits to small businesses.
IN THE HOUSE OF REPRESENTATIVES
OCTOBER 17, 2001
Mr. WYNN introduced the following bill; which was referred to the Committee
on Ways and Means, and in addition to the Committees on Government
Reform, and Small Business, 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 and the Office
of Federal Procurement Policy Act to provide economic
benefits to small businesses.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. INCREASED DEDUCTION FOR MEALS AND EN-
TERTAINMENT EXPENSES.
(a) IN GENERAL.—Paragraph (1) of section 274(n)
of the Internal Revenue Code of 1986 (relating to only
50 percent of meal and entertainment expenses allowed
as deduction) is amended by striking ‘‘50 percent’’ and
inserting ‘‘80 percent’’.
(b) CONFORMING AMENDMENTS.—
(1) Paragraph (3) of section 274(n) of such
Code is hereby repealed.
(2) The heading for subsection (n) of section
274 of such Code is amended by striking ‘‘50 PER-
CENT’’ and inserting ‘‘80 PERCENT’’.
(c) EFFECTIVE DATE.—The amendments made by
this section shall apply to taxable years beginning after
December 31, 2001.
SEC. 2. INCREASE IN EXPENSING UNDER SECTION 179.
(a) IN GENERAL.—Paragraph (1) of section 179(b)
of the Internal Revenue Code of 1986 (relating to dollar
limitation) is amended by striking ‘‘shall not exceed’’ and
all that follows and inserting ‘‘shall not exceed $50,000.’’.
(b) INCREASE
IN AMOUNT
OF PROPERTY TRIG-
GERING PHASEOUT OF MAXIMUM BENEFIT.—Paragraph
(2) of section 179(b) of such Code is amended by striking
‘‘$200,000’’ and inserting ‘‘$500,000’’.
(c) EFFECTIVE DATE.—The amendments made by
this section shall apply to taxable years beginning after
December 31, 2001.
SEC. 3. DEPRECIATION RECOVERY PERIOD FOR QUALIFIED
TECHNOLOGICAL EQUIPMENT REDUCED TO 2
YEARS.
(a) IN GENERAL.—Paragraph (3) of section 168(e)
of the Internal Revenue Code of 1986 (relating to classi-
fication of property) is amended by redesignating subpara-
graphs (A) through (E) as subparagraphs (B) through
(F), respectively, and by inserting before subparagraph
(B) (as so redesignated) the following new subparagraph:
‘‘(A) 2-YEAR
PROPERTY.—The term ‘2-
year property’ means qualified technological
equipment.’’
(b) 2-YEAR RECOVERY PERIOD UNDER ALTER-
NATIVE DEPRECIATION SYSTEM.—Subparagraph (C) of
section 168(g)(3) of such Code (relating to alternative de-
preciation system for certain property) is amended by
striking ‘‘5 years’’ and inserting ‘‘2 years’’.
(c) CONFORMING AMENDMENTS.—
(1) Paragraph (1) of section 168(c) of such
Code is amended by inserting before the first item
in the table the following new item:
‘‘2-year property ...................................................................
2 years’’.
(2) Clause (iv) of section 168(e)(3)(B) of such
Code is amended by striking clause (iv) and by re-
designating clauses (v) and (vi) as clauses (iv) and
(v), respectively.
(d) EFFECTIVE DATE.—The amendments made by
this section shall apply to property placed in service after
December 31, 2001.
SEC. 4. INCREASE IN MICRO-PURCHASE THRESHOLD FOR
PURCHASES FROM SMALL BUSINESSES.
(a) IN GENERAL.—Section 32(f) of the Office of Fed-
eral Procurement Policy Act (41 U.S.C. 428(f)) is amend-
ed by inserting before the period at the end the following:
‘‘, except that with respect to any purchase from a small
business concern (as defined in section 3(a) of the Small
Business Act (15 U.S.C. 632(a)) the micro-purchase
threshold is the amount of $100,000’’.
(b) CONFORMING AMENDMENTS.—Subsections (c)
and (d) of section 32 of the Office of Federal Procurement
Policy Act (41 U.S.C. 428) are amended by striking
‘‘$2,500’’ and inserting ‘‘the micro-purchase threshold’’.
SEC. 5. SOLE SOURCE PROCUREMENTS PURSUANT TO THE
2001 EMERGENCY SUPPLEMENTAL APPRO-
PRIATIONS ACT FOR RECOVERY FROM AND
RESPONSE TO TERRORIST ATTACKS ON THE
UNITED STATES.
Sections 8(a)(1)(D)(i)(II) and 31(b)(2)(A)(ii) of the
Small Business Act (15 U.S.C. 631 et seq.) shall not apply
with respect to any contract funded by amounts appro-
priated under the 2001 Emergency Supplemental Appro-
priations Act for Recovery from and Response to Terrorist
Attacks on the United States (Public Law 107–38).
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