Definition: In this task, you are given text for US Congressional and California state bills, your task is to generate a summary for this bill.
Input: SECTION 1. DEDUCTION FOR QUALIFIED SMALL BUSINESS INCOME.

(a) In General.--Paragraph (1) of section 199(a) of the Internal
Revenue Code of 1986 is amended to read as follows:
''(1) In general.--There shall be allowed as a deduction an
amount equal to the sum of--
''(A) 9 percent of the lesser of--
''(i) the qualified production activities
income of the taxpayer for the taxable year, or
''(ii) taxable income (determined without
regard to this section) for the taxable year,
and
''(B) in the case of a qualified small business for
a taxable year beginning in 2010 or 2011, 20 percent of
the lesser of--
''(i) the qualified small business income
of the taxpayer for the taxable year, or
''(ii) taxable income (determined without
regard to this section) for the taxable
year.''.
(b) Qualified Small Business; Qualified Small Business Income.--
Section 199 of such Code is amended by adding at the end the following
new subsection:
''(e) Qualified Small Business; Qualified Small Business Income.--
''(1) Qualified small business.--
''(A) In general.--For purposes of this section,
the term 'qualified small business' means any taxpayer
for any taxable year if the annual average number of
employees employed by such taxpayer during such taxable
year was 500 or fewer.
''(B) Aggregation rule.--For purposes of
subparagraph (A), any person treated as a single
employer under subsection (a) or (b) of section 52
(applied without regard to section 1563(b)) or
subsection (m) or (o) of section 414 shall be treated
as 1 taxpayer for purposes of this subsection.
''(C) Special rule.--If a taxpayer is treated as a
qualified small business for any taxable year, the
taxpayer shall not fail to be treated as a qualified
small business for any subsequent taxable year solely
because the number of employees employed by such
taxpayer during such subsequent taxable year exceeds
500. The preceding sentence shall cease to apply to
such taxpayer in the first taxable year in which there
is an ownership change (as defined by section 382(g) in
respect of a corporation, or by applying principles
analogous to such ownership change in the case of a
taxpayer that is a partnership) with respect to the
stock (or partnership interests) of the taxpayer.
''(2) Qualified small business income.--
''(A) In general.--For purposes of this section,
the term 'qualified small business income' means the
excess of--
''(i) the income of the qualified small
business which--
''(I) is attributable to the actual
conduct of a trade or business,
''(II) is income from sources
within the United States (within the
meaning of section 861), and
''(III) is not passive income (as
defined in section 904(d)(2)(B)), over
''(ii) the sum of--
''(I) the cost of goods sold that
are allocable to such income, and
''(II) other expenses, losses, or
deductions (other than the deduction
allowed under this section), which are
properly allocable to such income.
''(B) Exceptions.--The following shall not be
treated as income of a qualified small business for
purposes of subparagraph (A):
''(i) Any income which is attributable to
any property described in section 1400N(p)(3).
''(ii) Any income which is attributable to
the ownership or management of any professional
sports team.
''(iii) Any income which is attributable to
a trade or business described in subparagraph
(B) of section 1202(e)(3).
''(iv) Any income which is attributable to
any property with respect to which records are
required to be maintained under section 2257 of
title 18, United States Code.
''(C) Allocation rules, etc.--Rules similar to the
rules of paragraphs (2), (3), (4)(D), and (7) of
subsection (c) shall apply for purposes of this
paragraph.
''(3) Special rules.--Except as otherwise provided by the
Secretary, rules similar to the rules of subsection (d) shall
apply for purposes of this subsection.''.
(c) Conforming Amendments.--
(1) Section 199(a)(2) of such Code is amended by striking
''paragraph (1)'' and inserting ''paragraph (1)(A)''.
(2) The following provisions of section 199 of such Code
are each amended by striking ''(a)(1)(B)'' and inserting
''(a)(1)(A)(ii)'':
(A) Subsection (d)(2).
(B) Subsection (d)(6)(B).
(C) Subsection (d)(7).
(d) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2009.
Output:
Amends the Internal Revenue Code to allow a small business that employs 500 or fewer employees a tax deduction in 2010 and 2011 for 20% of the lesser of its qualified small business income or its taxable income. Defines "qualified small business income" to include income which is from sources within the United States and which is not passive income.