SEC. 2. DEFERRED PAYMENT OF TAX BY CERTAIN SMALL 
BUSINESSES. 
(a) IN GENERAL.—Subchapter B of chapter 62 of the 
Internal Revenue Code of 1986 (relating to extensions of 
time for payment of tax) is amended by adding at the end 
the following new section: 
‘‘SEC. 6168. EXTENSION OF TIME FOR PAYMENT OF TAX FOR 
CERTAIN SMALL BUSINESSES. 
‘‘(a) IN GENERAL.—An eligible small business may 
elect to pay the tax imposed by chapter 1 in 4 equal in-
stallments. 
‘‘(b) LIMITATION.—The maximum amount of tax 
which may be paid in installments under this section for 
any taxable year shall not exceed whichever of the fol-
lowing is the least: 
‘‘(1) The tax imposed by chapter 1 for the tax-
able year. 
‘‘(2) The amount contributed by the taxpayer 
into a GROW Account during such year. 
‘‘(3) The excess of $275,000 over the aggregate 
amount of tax for which an election under this sec-
tion was made by the taxpayer (or any predecessor) 
for all prior taxable years. 
‘‘(c) ELIGIBLE SMALL BUSINESS.—For purposes of 
this section— 
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‘‘(1) IN
GENERAL.—The term ‘eligible small 
business’ means, with respect to any taxable year, 
any person if— 
‘‘(A) such person meets the active business 
requirements of section 1202(e) throughout 
such taxable year, 
‘‘(B) the taxpayer has gross receipts of 
$12,000,000 or less for the taxable year, 
‘‘(C) the gross receipts of the taxpayer for 
such taxable year are at least 10 percent great-
er than the average annual gross receipts of the 
taxpayer (or any predecessor) for the 2 prior 
taxable years, and 
‘‘(D) the taxpayer uses an accrual method 
of accounting. 
‘‘(2) CERTAIN RULES TO APPLY.—Rules similar 
to the rules of paragraphs (2) and (3) of section 
448(c) shall apply for purposes of this subsection. 
‘‘(d) DATE FOR PAYMENT OF INSTALLMENTS; TIME 
FOR PAYMENT OF INTEREST.— 
‘‘(1) DATE FOR PAYMENT OF INSTALLMENTS.— 
‘‘(A) IN GENERAL.—If an election is made 
under this section for any taxable year, the first 
installment shall be paid on or before the due 
date for such installment and each succeeding 
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installment shall be paid on or before the date 
which is 1 year after the date prescribed by this 
paragraph for payment of the preceding install-
ment. 
‘‘(B) DUE
DATE
FOR
FIRST
INSTALL-
MENT.—The due date for the first installment 
for a taxable year shall be whichever of the fol-
lowing is the earliest: 
‘‘(i) The date selected by the tax-
payer. 
‘‘(ii) The date which is 2 years after 
the date prescribed by section 6151(a) for 
payment of the tax for such taxable year. 
‘‘(C) ADDITIONAL DEFERRAL WHERE EM-
PLOYMENT INCREASES.— 
‘‘(i) 
IN
GENERAL.—Subparagraph 
(B)(ii) shall be applied by substituting ‘3 
years’ for ‘2 years’ in the case of an eligi-
ble small business which meets the employ-
ment increase requirement of clause (ii) for 
the second taxable year following the tax-
able year for which the election is made. 
‘‘(ii) EMPLOYMENT
INCREASE
RE-
QUIREMENT.—The employment increase 
requirement of this clause is met for such 
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second taxable year if the average daily 
number of full-time employees of such 
business for the last calendar quarter end-
ing in such taxable year is at least 10 per-
cent greater than such average number for 
the last calendar quarter ending before the 
date that the GROW Account of such busi-
ness is established. For purposes of this 
clause, an employee shall be considered 
full-time if such employee is employed at 
least 35 hours per week 
‘‘(iii) 
SALARY
MAINTENANCE
OF 
CALLED-UP RESERVIST TREATED AS EM-
PLOYMENT
INCREASE.—For purposes of 
clause (ii), an eligible small business shall 
be treated as having an additional full-time 
employee for any period for each employee 
who is a Ready Reserve/National Guard 
employee of such business serving on quali-
fied active duty for such period if the com-
pensation paid or incurred by such busi-
ness to such employee for such period is 
not less than the active duty wage differen-
tial of such employee for such period. For 
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