To amend the Internal Revenue Code of 1986 to provide tax relief for small businesses, and for other purposes.

SECTION 1. SHORT TITLE; ETC.

    (a) Short Title.--This Act may be cited as the ``America's Small 
Business Tax Relief Act of 2012''.
    (b) References.--Except as otherwise expressly provided, whenever 
in this Act an amendment or repeal is expressed in terms of an 
amendment to, or repeal of, a section or other provision, the reference 
shall be considered to be made to a section or other provision of the 
Internal Revenue Code of 1986.
    (c) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; etc.
Sec. 2. 100-Percent exclusion of gain on certain small business stock 
                            made permanent.
Sec. 3. 5-Year carryback of general business credits of eligible small 
                            businesses made permanent.
Sec. 4. Alternative minimum tax rules for general business credits of 
                            eligible small businesses made permanent.
Sec. 5. Reduction in recognition period for built-in gains tax made 
                            permanent.
Sec. 6. Increased expensing limitations and treatment of certain real 
                            property as section 179 property made 
                            permanent.
Sec. 7. Special rule for long-term contract accounting made permanent.
Sec. 8. Increase of amount allowed as a deduction for start-up 
                            expenditures made permanent.
Sec. 9. Allowance of deduction for health insurance in computing self-
                            employment taxes made permanent.

SEC. 2. 100-PERCENT EXCLUSION OF GAIN ON CERTAIN SMALL BUSINESS STOCK 
              MADE PERMANENT.

    (a) In General.--Paragraph (4) of section 1202(a) is amended--
            (1) by striking ``after the date of the enactment of the 
        Creating Small Business Jobs Act of 2010 and before January 1, 
        2012'' and inserting ``after September 27, 2010'', and
            (2) by striking ``during certain periods in 2010 and 2011'' 
        and inserting ``after september 27, 2010'' in the heading 
        thereof.
    (b) Effective Date.--The amendments made by this section shall 
apply to stock acquired after December 31, 2011.

SEC. 3. 5-YEAR CARRYBACK OF GENERAL BUSINESS CREDITS OF ELIGIBLE SMALL 
              BUSINESSES MADE PERMANENT.

    (a) In General.--Subparagraph (A) of section 39(a)(4) is amended by 
striking ``determined in the first taxable year of the taxpayer 
beginning in 2010''.
    (b) Effective Date.--The amendment made by this section shall apply 
to credits determined in taxable years beginning after December 31, 
2011.

SEC. 4. ALTERNATIVE MINIMUM TAX RULES FOR GENERAL BUSINESS CREDITS OF 
              ELIGIBLE SMALL BUSINESSES MADE PERMANENT.

    (a) In General.--Paragraph (5) of section 38(c) is amended--
            (1) by striking ``determined in taxable years beginning in 
        2010'' in subparagraph (A), and
            (2) by striking ``in 2010'' in the heading of such 
        paragraph.
    (b) Effective Date.--The amendments made by this section shall 
apply to credits determined in taxable years beginning after December 
31, 2011, and to carrybacks of such credits.

SEC. 5. REDUCTION IN RECOGNITION PERIOD FOR BUILT-IN GAINS TAX MADE 
              PERMANENT.

    (a) In General.--Subparagraph (A) of section 1374(d)(7) is amended 
by striking ``10-year period'' and inserting ``5-year period''.
    (b) Conforming Amendments.--
            (1) Paragraph (7) of section 1374(d) is amended by striking 
        subparagraph (B) and by redesignating subparagraph (C) as 
        subparagraph (B).
            (2) Subparagraph (B) of section 1374(d), as redesignated by 
        paragraph (1), is amended by striking ``section 953(e)--'' and 
        all that follows and inserting ``section 953(e), subparagraph 
        (A) shall be applied without regard to the phrase `5-year'.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2011.

SEC. 6. INCREASED EXPENSING LIMITATIONS AND TREATMENT OF CERTAIN REAL 
              PROPERTY AS SECTION 179 PROPERTY MADE PERMANENT.

    (a) In General.--Subsection (b) of section 179 is amended--
            (1) by striking ``shall not exceed--'' and all that follows 
        in paragraph (1) and inserting ``shall not exceed $500,000.'',
            (2) by striking ``exceeds--'' and all that follows in 
        paragraph (2) and inserting ``exceeds $2,000,000.'', and
            (3) by striking paragraph (6).
    (b) Computer Software.--Clause (ii) of section 179(d)(1)(A) is 
amended by striking ``and which is placed in service in a taxable year 
beginning after 2002 and before 2013,''.
    (c) Election.--Paragraph (2) of section 179(c) is amended to read 
as follows:
            ``(2) Revocation of election.--Any election made under this 
        section, and any specification contained in any such election, 
        may be revoked by the taxpayer with respect to any property, 
        and such revocation, once made, shall be irrevocable.''.
    (d) Special Rules for Treatment of Qualified Real Property.--
Paragraph (1) of section 179(f) is amended by striking ``beginning in 
2010 or 2011''.
    (e) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2011.

SEC. 7. SPECIAL RULE FOR LONG-TERM CONTRACT ACCOUNTING MADE PERMANENT.

    (a) In General.--Subparagraph (B) of section 460(c)(6) is amended 
by striking ``which--'' and all that follows and inserting ``which has 
a recovery period of 7 years or less.''.
    (b) Effective Date.--The amendment made by this section shall apply 
to property placed in service after December 31, 2011.

SEC. 8. INCREASE OF AMOUNT ALLOWED AS A DEDUCTION FOR START-UP 
              EXPENDITURES MADE PERMANENT.

    (a) In General.--Clause (ii) of section 195(b)(1)(A) is amended--
            (1) by striking ``$5,000'' and inserting ``$10,000'', and
            (2) by striking ``$50,000'' and inserting ``$60,000''.
    (b) Conforming Amendment.--Subsection (b) of section 195 is amended 
by striking paragraph (3).
    (c) Effective Date.--The amendments made by this section shall 
apply to amounts paid or incurred in taxable years beginning after 
December 31, 2011.

SEC. 9. ALLOWANCE OF DEDUCTION FOR HEALTH INSURANCE IN COMPUTING SELF-
              EMPLOYMENT TAXES MADE PERMANENT.

    (a) In General.--Paragraph (4) of section 162(l) is amended by 
striking ``, or after December 31, 2010''.
    (b) Effective Date.--The amendment made by this section shall apply 
to taxable years beginning after December 31, 2011.

Summary: America's Small Business Tax Relief Act of 2012 - Amends the Internal Revenue Code to make permanent: (1) the 100% exclusion from gross income of gain from the sale of certain small business stock, (2) carrybacks and alternative minimum tax rules relating to small business tax credits, (3) the reduction in the recognition period for the built-in gains from the sale of S corporation stock, (4) the increased limitation for the expensing of depreciable business assets, (5) the use of the percentage of completion accounting method for long-term contracts, (6) the increased tax deduction for business start-up expenditures, and (7) the allowance of a deduction for health insurance premiums in computing net earnings from self-employment income.