SEC. 2. REDUCTION IN EMPLOYER PORTION OF PAYROLL 
TAX FOR CERTAIN EMPLOYERS INCREASING 
PAYROLL. 
(a) IN GENERAL.—In the case of any calendar quar-
ter beginning in 2010 or 2011, the aggregate amount of 
employer payroll tax deposits of an employer shall be re-
duced by an amount equal to the applicable percentage 
of the payroll increase of such employer for such calendar 
quarter which is attributable to wages paid to a qualified 
individual. 
(b) DEFINITIONS AND SPECIAL RULES.—For pur-
poses of this section— 
(1) EMPLOYER PAYROLL TAX DEPOSITS.—The 
term ‘‘employer payroll tax deposits’’ means deposits 
an employer is required to make under section 6302 
of the Internal Revenue Code of 1986 of taxes im-
posed on such employer under section 3111 of such 
Code with respect to individuals in his employ. 
(2) APPLICABLE PERCENTAGE.—The applicable 
percentage shall be— 
(A) in the case of any calendar quarter be-
ginning in 2010, 15 percent, and 
(B) in the case of any calendar quarter be-
ginning in 2011, 10 percent. 
(3) PAYROLL INCREASE.— 
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(A) IN GENERAL.—The term ‘‘payroll in-
crease’’ means, with respect to an employer for 
a calendar quarter, the excess (if any) of— 
(i) the aggregate amount of wages (as 
defined in section 3121(a) of such Code) 
paid by such employer to all employees for 
such calendar quarter, over 
(ii) aggregate amount of inflation ad-
justed wages paid by such employer to all 
employees for the same calendar quarter in 
the preceding calendar year. 
(B) WAGES.—The term ‘‘wages’’ has the 
meaning given such term by section 3121(a) of 
such Code for purposes of section 3111(a). 
(C) INFLATION
ADJUSTED
WAGES.—The 
term ‘‘inflation adjusted wages’’ means an 
amount equal to— 
(i) wages with respect to an employee, 
multiplied by 
(ii) the cost-of-living adjustment de-
termined under section 1(f)(3) for the cal-
endar year for which the reduction in de-
posits under this section is being deter-
mined occurs, determined by substituting 
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‘calendar year 2009’ for ‘calendar year 
1992’ in subparagraph (B) thereof. 
(4) QUALIFIED INDIVIDUAL.—The term ‘‘quali-
fied individual’’ means any individual— 
(A) who begins employment with a quali-
fied employer after February 3, 2010, and be-
fore January 1, 2012, 
(B) whose principal place of employment 
with such employer is certified by the employer 
as being within a county the unemployment 
rate of which is not less than 8.5 percent (as 
determined by reference to the most recent un-
employment data announced by the Bureau of 
Labor Statistics of the Department of Labor 
for the month during which such individual be-
gins employment), 
(C) who is not employed by the qualified 
employer to replace another employee of such 
employer unless such other employee separated 
from employment voluntarily or for cause, and 
(D) who is not an individual described in 
section 51(i)(1). 
(5) EXCESS
REDUCTIONS
TREATED
AS
RE-
FUNDABLE.— 
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(A) IN
GENERAL.—The amount of em-
ployer payroll tax deposits of an employer for 
any quarter shall not be reduced below zero 
under subsection (a). 
(B) EXCESS
TREATED
AS
PAYMENT
OF 
TAX.— 
(i) IN
GENERAL.—The amount by 
which the reduction for any calendar quar-
ter under subsection (a) would (but for 
subparagraph (A)) have exceeded the ag-
gregate employer payroll tax deposits of 
the employer for such quarter shall be 
treated as a payment of the tax imposed 
by subtitle A of such Code for the last tax-
able year ending before such calendar 
quarter ends. 
(ii) TIMING.—Secretary shall, subject 
to the provisions of such Code, refund or 
credit any overpayment attributable to this 
section as rapidly as possible. 
(iii) NO INTEREST.—No interest shall 
be allowed on any overpayment attrib-
utable to this section. 
(6) 
DENIAL
OF
DOUBLE
BENEFIT.—The 
amount of any deduction allowable to the employer 
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under chapter 1 of such Code for taxes paid under 
section 3111 of such Code with respect to employ-
ment during any calendar quarter shall be reduced 
by the amount by which the employer payroll tax de-
posits of such employer are reduced under sub-
section (a) for such quarter. 
(7) WAGES
MUST
BE
FOR
TRADE
OR
BUSI-
NESS.—A rule similar to the rule of section 51(f) of 
such Code shall apply. 
(8) ADJUSTMENTS FOR CERTAIN ACQUISITIONS, 
ETC.—Under regulations prescribed by the Sec-
retary— 
(A) ACQUISITIONS.—If, after December 
31, 2009, an employer acquires the major por-
tion of a trade or business of another person 
(hereafter in this paragraph referred to as the 
‘‘predecessor’’) or the major portion of a sepa-
rate unit of a trade or business of a prede-
cessor, then, for purposes of applying this sec-
tion for any calendar quarter ending after such 
acquisition, the amount of wages or compensa-
tion deemed paid by the employer during peri-
ods before such acquisition shall be increased by 
so much of such wages or compensation paid by 
the predecessor with respect to the acquired 
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trade or business as is attributable to the por-
tion of such trade or business acquired by the 
employer. 
(B) DISPOSITIONS.—If, after December 
31, 2009— 
(i) an employer disposes of the major 
portion of any trade or business of the em-
ployer or the major portion of a separate 
unit of a trade or business of the employer 
in a transaction to which paragraph (1) 
applies, and 
(ii) the employer furnishes the acquir-
ing person such information as is nec-
essary for the application of subparagraph 
(A), 
then, for purposes of applying this section for 
any calendar quarter ending after such disposi-
tion, the amount of wages or compensation 
deemed paid by the employer during periods be-
fore such disposition shall be reduced by so 
much of such wages as is attributable to such 
trade or business or separate unit. 
(9) EMPLOYERS
NOT
ON
QUARTERLY
SYS-
TEM.—The Secretary of the Treasury shall prescribe 
rules for the application of this section in the case 
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(2) in subparagraph (B), by striking clause (ii) 
and by redesignating clauses (iii) and (iv) as clauses 
(ii) and (iii), respectively, and 
(3) in subparagraph (E)(i), by striking ‘‘, and 
before January 1, 2010’’. 
(b) CONFORMING AMENDMENTS.— 
(1) Subclause (I) of section 168(k)(2)(B)(i) of 
such Code is amended by striking ‘‘(iii), and (iv)’’ 
and inserting ‘‘and (iii)’’. 
(2) Clause (i) of section 168(k)(2)(C) of such 
Code is amended by striking ‘‘, (iii) and (iv)’’ and 
inserting ‘‘and (iii)’’. 
(3) Subparagraph (B) of section 168(l)(5) of 
such Code is amended to read as follows: 
‘‘(B) by substituting ‘, and before January 
1, 2013.’ for the period at the end of clause (i) 
thereof, and’’. 
(4) Subparagraph (D) of section 1400L(b)(2) 
of such Code is amended by striking ‘‘clause (i) 
thereof shall be applied without regard to ‘and be-
fore January 1, 2010,’ and’’. 
(5) Subparagraph (B) of section 1400N(d)(3) 
of such Code is amended to read as follows: 
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‘‘(B) by substituting ‘, and before January 
1, 2008.’ for the period at the end of clause (i) 
thereof, and’’. 
(6) The heading for subsection (k) of section 
168 of such Code is amended by striking ‘‘and be-
fore January 1, 2010’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to property placed in service after 
December 31, 2009. 
SEC. 5. PERMANENT INCREASE IN LIMITATIONS ON EX-
PENSING OF CERTAIN DEPRECIABLE BUSI-
NESS ASSETS. 
(a) IN GENERAL.—Subsection (b) of section 179 of 
the Internal Revenue Code of 1986 (relating to limita-
tions) is amended— 
(1) by striking ‘‘$25,000’’ and all that follows 
in paragraph (1) and inserting ‘‘$250,000.’’, 
(2) by striking ‘‘$200,000’’ and all that follows 
in paragraph (2) and inserting ‘‘$800,000’’, 
(3) by striking ‘‘after 2007 and before 2011, 
the $120,000 and $500,000’’ in paragraph (5)(A) 
and inserting ‘‘after 2009, the $250,000 and the 
$800,000’’, 
(4) by striking ‘‘2006’’ in paragraph (5)(A)(ii) 
and inserting ‘‘2008’’, and 
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(5) by striking paragraph (7). 
(b) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2009. 
Æ 
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