(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 2006)’’ 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 2006)’’ 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 2004, 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-
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 2005, 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 2004’ 
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.’’.
(4) EFFECTIVE DATE.—The amendments made 
by this subsection shall apply to taxable years begin-
ning after December 31, 2004. 
(b) WORK OPPORTUNITY CREDIT, WELFARE-TO-
WORK
CREDIT, 
AND
RESEARCH
CREDIT
ALLOWED 
AGAINST ALTERNATIVE MINIMUM TAX.—
(1) IN GENERAL.—Subsection (c) of section 38 
of the Internal Revenue Code of 1986 (relating to 
limitation based on amount of tax) is amended by 
redesignating paragraph (4) as paragraph (7) and 
by inserting after paragraph (3) the following new 
paragraphs: 
‘‘(4) SPECIAL RULES FOR WORK OPPORTUNITY 
CREDIT.—
‘‘(A) IN
GENERAL.—In the case of the 
work opportunity credit—
‘‘(i) this section and section 39 shall 
be applied separately with respect to such 
credit, and 
‘‘(ii) in applying paragraph (1) to 
such credit—
‘‘(I) subparagraph (A) shall not 
apply, and 
‘‘(II) the limitation under para-
graph (1) (as modified by subclause
(I)) shall be reduced by the credit al-
lowed under subsection (a) for the 
taxable year (other than the work op-
portunity credit, the welfare-to-work 
credit, or the research credit). 
‘‘(B) WORK
OPPORTUNITY
CREDIT.—For 
purposes of this subsection, the term ‘work op-
portunity credit’ means the credit allowable 
under subsection (a) by reason of section 51(a). 
‘‘(5) SPECIAL RULES FOR WELFARE-TO-WORK 
CREDIT.—
‘‘(A) IN GENERAL.—In the case of the wel-
fare-to-work credit—
‘‘(i) this section and section 39 shall 
be applied separately with respect to such 
credit, and 
‘‘(ii) in applying paragraph (1) to 
such credit—
‘‘(I) subparagraph (A) shall not 
apply, and 
‘‘(II) the limitation under para-
graph (1) (as modified by subclause 
(I)) shall be reduced by the credit al-
lowed under subsection (a) for the
taxable year (other than the welfare-
to-work credit or the research credit). 
‘‘(B) WELFARE-TO-WORK
CREDIT.—For 
purposes of this subsection, the term ‘welfare-
to-work credit’ means the credit allowable under 
subsection (a) by reason of section 51A(d)(2). 
‘‘(6) SPECIAL RULES FOR RESEARCH CREDIT.—
‘‘(A) IN GENERAL.—In the case of the re-
search credit—
‘‘(i) this section and section 39 shall 
be applied separately with respect to such 
credit, and 
‘‘(ii) in applying paragraph (1) to 
such credit—
‘‘(I) subparagraph (A) shall not 
apply, and 
‘‘(II) the limitation under para-
graph (1) (as modified by subclause 
(I)) shall be reduced by the credit al-
lowed under subsection (a) for the 
taxable year (other than the research 
credit). 
‘‘(B) RESEARCH CREDIT.—For purposes of 
this subsection, the term ‘research credit’
(1) EXEMPTION FOR SMALL EMPLOYERS.—Sec-
tion 6 of the Fair Labor Standards Act of 1938 (29 
U.S.C. 206) is amended—
(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) PHASED INCREASE.—Section 6(a) of such 
Act (29 U.S.C. 206(a)) is amended by striking para-
graph (1) and inserting the following new para-
graph: 
‘‘(1) except as otherwise provided in this sec-
tion, not less than $5.15 an hour through the period 
ending September 30, 2005, not less than $5.50 an 
hour during the year beginning October 1, 2005, not 
less than $6.00 an hour during the year beginning 
October 1, 2006, and not less than $6.50 an hour 
during the year beginning October 1, 2007.’’. 
(c) EFFECTIVE DATE.—The amendment made by 
subsection (b)(1) shall apply beginning October 1, 2005.
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 annual gross 
volume of sales made or business done, exclu-
sive of excise taxes at the retail level that are 
separately stated, is not less than $500,000 
through the period ending September 30, 2005, 
not less than $650,000 during the year begin-
ning October 1, 2005, not less than $800,000 
during the year beginning October 1, 2006, and 
not less than $1,000,000 during the year begin-
ning October 1, 2007.’’. 
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 
(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, 2005, and 
shall apply to benefits for months beginning on or after 
such date.
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