To amend the Internal Revenue Code of 1986 to provide individual and corporate income tax relief and to extend 100 percent bonus depreciation, and for other purposes.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Jumpstarting Our Business Sector Act 
of 2011''.

SEC. 2. REDUCTION IN CORPORATE INCOME TAX RATES.

    (a) In General.--Subsection (b) of section 11 of the Internal 
Revenue Code of 1986 is amended to read as follows:
    ``(b) Amount of Tax.--The amount of the tax imposed by subsection 
(a) shall be 0 percent of taxable income.''.
    (b) Conforming Amendments.--
            (1) Section 55(b)(1)(B)(i) of such Code is amended by 
        striking ``20 percent'' and inserting ``0 percent''.
            (2) Section 280C(c)(3)(B)(ii)(II) of such Code is amended 
        by striking ``maximum rate of tax under section 11(b)(1)'' and 
        inserting ``rate of tax under section 11(b)''.
            (3) Sections 860E(e)(2)(B), 860E(e)(6)(A)(ii), 
        860K(d)(2)(A)(ii), 860K(e)(1)(B)(ii), 1446(b)(2)(B), and 
        7874(e)(1)(B) of such Code are each amended by striking 
        ``highest rate of tax specified in section 11(b)(1)'' and 
        inserting ``rate of tax specified in section 11(b)''.
            (4) Section 904(b)(3)(D)(ii) of such Code is amended by 
        striking ``(determined without regard to the last sentence of 
        section 11(b)(1))''.
            (5) Section 962 of such Code is amended by striking 
        subsection (c) and by redesignating subsection (d) as 
        subsection (c).
            (6) Section 1201(a) of such Code is amended--
                    (A) by striking ``35 percent (determined without 
                regard to the last 2 sentences of section 11(b)(1))'' 
                and inserting ``0 percent'', and
                    (B) by striking ``35 percent'' in paragraph (2) and 
                inserting ``0 percent''.
            (7) Section 1561(a) of such Code is amended--
                    (A) by striking paragraph (1) and by redesignating 
                paragraphs (2), (3), and (4) as paragraphs (1), (2), 
                and (3), respectively,
                    (B) by striking ``The amounts specified in 
                paragraph (1), the'' and inserting ``The'',
                    (C) by striking ``paragraph (2)'' and inserting 
                ``paragraph (1)'',
                    (D) by striking ``paragraph (3)'' both places it 
                appears and inserting ``paragraph (2)'',
                    (E) by striking ``paragraph (4)'' and inserting 
                ``paragraph (3)'', and
                    (F) by striking the fourth sentence.
            (8) Subsection (b) of section 1561 of such Code is amended 
        to read as follows:
    ``(b) Certain Short Taxable Years.--If a corporation has a short 
taxable year which does not include a December 31 and is a component 
member of a controlled group of corporations with respect to such 
taxable year, then for purposes of this subtitle, the amount to be used 
in computing the accumulated earnings credit under section 535(c) (2) 
and (3) of such corporation for such taxable year shall be the amount 
specified in subsection (a)(1) divided by the number of corporations 
which are component members of such group on the last day of such 
taxable year. For purposes of the preceding sentence, section 1563(b) 
shall be applied as if such last day were substituted for December 
31.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2011.

SEC. 3. ZERO PERCENT CAPITAL GAINS RATE FOR INDIVIDUALS AND 
              CORPORATIONS.

    (a) Zero Percent Capital Gains Rate for Individuals.--
            (1) In general.--Paragraph (1) of section 1(h) of the 
        Internal Revenue Code of 1986 is amended by striking 
        subparagraph (C), by redesignating subparagraphs (D) and (E) 
        and subparagraphs (C) and (D), respectively, and by amending 
        subparagraph (B) to read as follows:
                    ``(B) 0 percent of the adjusted net capital gain 
                (or, if less, taxable income);''.
            (2) Alternative minimum tax.--Paragraph (3) of section 
        55(b) is amended by striking subparagraph (C), by redesignating 
        subparagraph (D) as subparagraph (C), and by amending 
        subparagraph (B) to read as follows:
                    ``(B) 0 percent of the adjusted net capital gain 
                (or, if less, taxable excess), plus''.
            (3) Repeal of sunset of reduction in capital gains rates 
        for individuals.--Section 303 of the Jobs and Growth Tax Relief 
        Reconciliation Act of 2003 shall not apply to section 301 of 
        such Act.
    (b) Zero Percent Capital Gains Rate for Corporations.--
            (1) In general.--Section 1201 of the Internal Revenue Code 
        of 1986 is amended by redesignating subsection (b) as 
        subsection (c), and by striking subsection (a) and inserting 
        the following new subsections:
    ``(a) General Rule.--If for any taxable year a corporation has a 
net capital gain, then, in lieu of the tax imposed by sections 11, 511, 
821(a) or (c), and 831(a), there is hereby imposed a tax (if such tax 
is less than the tax imposed by such sections) which shall consist of 
the sum of--
            ``(1) a tax computed on the taxable income reduced by the 
        amount of the net capital gain, at the rates and in the manner 
        as if this subsection had not been enacted,
            ``(2) 0 percent of the adjusted net capital gain (or, if 
        less, taxable income),
            ``(3) 25 percent of the excess (if any) of--
                    ``(A) the unrecaptured section 1250 gain (or, if 
                less, the net capital gain (determined without regard 
                to subsection (b)(2)), over
                    ``(B) the excess (if any) of--
                            ``(i) the sum of the amount on which tax is 
                        determined under paragraph (1) plus the net 
                        capital gain, over
                            ``(ii) taxable income, plus
            ``(4) 28 percent of the amount of taxable income in excess 
        of the sum of the amounts on which tax is determined under the 
        preceding paragraphs of this subsection.
    ``(b) Definitions and Special Rules.--For purposes of this 
section--
            ``(1) In general.--The terms `adjusted net capital gain' 
        and `unrecaptured section 1250 gain' shall have the respective 
        meanings given such terms in section 1(h).
            ``(2) Dividends taxed at net capital gain.--Except as 
        otherwise provided in this section, the term `net capital gain' 
        has the meaning given such term in section 1(h)(11).''.
            (2) Alternative minimum tax.--Section 55(b) of such Code is 
        amended by adding at the end the following new paragraph:
            ``(4) Maximum rate of tax on net capital gain of 
        corporations.--The amount determined under paragraph (1)(B)(i) 
        shall not exceed the sum of--
                    ``(A) the amount determined under such paragraph 
                computed at the rates and in the same manner as if this 
                paragraph had not been enacted on the taxable excess 
                reduced by the net capital gain, plus
                    ``(B) the amount determined under section 1201.''.
            (3) Technical amendments.--
                    (A) Section 1445(e)(1) of such Code is amended by 
                striking ``35 percent (or, to the extent provided in 
                regulations, 15 percent)'' and inserting ``0 percent''.
                    (B) Section 1445(e)(2) of such Code is amended by 
                striking ``35 percent'' and inserting ``0 percent''.
                    (C) Section 7518(g)(6)(A) of such Code is amended 
                by striking ``15 percent (34 percent in the case of a 
                corporation)'' and inserting ``0 percent''.
                    (D) Section 607(h)(6)(A) of the Merchant Marine 
                Act, 1936 is amended by striking ``15 percent (34 
                percent in the case of a corporation)'' and inserting 
                ``0 percent''.
    (c) Effective Date.--
            (1) In general.--Except as provided in paragraph (2), the 
        amendments made by this section shall apply to taxable years 
        ending after the date of the enactment of this Act.
            (2) Withholding.--The amendments made by subparagraphs (A) 
        and (B) of subsection (b)(3) shall apply to dispositions and 
        distributions after the date of the enactment of this Act.

SEC. 4. ONE-YEAR EXTENSION OF BONUS DEPRECIATION AND 100 PERCENT 
              EXPENSING FOR CERTAIN BUSINESS ASSETS.

    (a) In General.--
            (1) Bonus depreciation.--Paragraph (2) of section 168(k) of 
        the Internal Revenue Code of 1986 is amended--
                    (A) by striking ``January 1, 2014'' in subparagraph 
                (A)(iv) and inserting ``January 1, 2015'', and
                    (B) by striking ``January 1, 2013'' each place it 
                appears and inserting ``January 1, 2014''.
            (2) 100 percent expensing.--Paragraph (5) of section 168(k) 
        is amended to read as follows:
            ``(5) Temporary 100 percent bonus depreciation.--Paragraph 
        (1)(A) shall be applied by substituting `100 percent' for `50 
        percent' in the case of property placed in service by the 
        taxpayer after September 8, 2010, which would be qualified 
        property if--
                    ``(A) `January 1, 2013' were substituted for 
                `January 1, 2014' each place it appears in paragraph 
                (2),
                    ``(B) `January 1, 2014' were substituted for 
                `January 1, 2015' in clause (iv) of paragraph (2)(A), 
                and
                    ``(C) `September 8, 2010' were substituted for 
                `December 31, 2007' each place it appears in paragraph 
                (2).''.
            (3) Special rules relating to election to accelerate amt 
        credit in lieu of bonus depreciation.--
                    (A) Subclause (II) of section 168(k)(4)(D)(iii) of 
                such Code is amended by striking ``January 1, 2013'' 
                and inserting ``January 1, 2014''.
                    (B) Clause (iv) of section 168(k)(4)(I) of such 
                Code is amended--
                            (i) by inserting after ``Act of 2010'', and
                            (ii) by striking ``of such Act'' and 
                        inserting ``or section 2(a)(3)(A) of either 
                        such Act, respectively''.
            (4) Conforming amendments.--
                    (A) The heading for subsection (k) of section 168 
                of such Code is amended by striking ``January 1, 2013'' 
                and inserting ``January 1, 2014''.
                    (B) The heading for clause (ii) of section 
                168(k)(2)(B) of such Code is amended by striking ``pre-
                january 1, 2013'' and inserting ``pre-january 1, 
                2014''.
                    (C) Subparagraph (C) of section 168(n)(2) of such 
                Code is amended by striking ``January 1, 2013'' and 
                inserting ``January 1, 2014''.
                    (D) Subparagraph (D) of section 1400L(b)(2) of such 
                Code is amended by striking ``January 1, 2013'' and 
                inserting ``January 1, 2014''.
                    (E) Subparagraph (B) of section 1400N(d)(3) of such 
                Code is amended by striking ``January 1, 2013'' and 
                inserting ``January 1, 2014''.
    (b) Effective Date.--The amendments made by this section shall 
apply to property placed in service after December 31, 2011.

Summary: Jumpstarting Our Business Sector Act of 2011 - Amends the Internal Revenue Code to: (1) eliminate the corporate income tax and the tax on the capital gains of individuals and corporations; and (2) extend for one year the additional depreciation allowance for business and investment assets (bonus depreciation), the 100% expensing allowance for such assets, and the election to accelerate the alternative minimum tax (AMT) credit in lieu of bonus depreciation.