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. SHORT TITLE.

This Act may be cited as the ''Small Business Tax Relief and
Retirement Restoration Act of 2010''.

SEC. 2. FINDINGS.

Congress finds the following:
(1) Small businesses are critical to the economic recovery
of the United States.
(2) As a consequence of the recession that began in
December 2007, even fundamentally healthy small businesses have
been unable to access the credit they need.
(3) Data released by the Federal Deposit Insurance
Corporation indicate that lending to small businesses fell in
2009 by ''the largest percentage decline since 1942''.
(4) Limited access to credit has forced many small business
owners to use their personal assets, including retirement
savings, to ensure that their enterprises survive.
(5) Such actions have helped to mitigate further job
losses.
(6) While it is appropriate for Congress to resist calls to
allow individual retirement account holders to withdraw loans
during normal economic times, the current recession represents
an extraordinary situation during which extraordinary measures
must be taken.
(7) A targeted and temporary suspension of penalties for
loans made from retirement accounts will help small businesses
recover and provide a direct infusion of funds into the
economy.

SEC. 3. LOANS FROM INDIVIDUAL RETIREMENT PLANS FOR CERTAIN SMALL
BUSINESS EXPENSES.

(a) In General.--Subsection (e) of section 408 of the Internal
Revenue Code of 1986 (relating to tax treatment of accounts and
annuities) is amended by adding at the end the following new paragraph:
''(7) Temporary exception for loans from individual
retirement plans for certain small business expenses.--
''(A) In general.--On election of the taxpayer,
paragraphs (2) and (3) of this subsection and section
4975 shall not apply with respect to any qualified
small business loan from an individual retirement plan
to the individual for whose benefit the plan is
maintained.
''(B) Qualified small business loan.--For purposes
of this paragraph--
''(i) In general.--The term 'qualified
small business loan' means, with respect to any
taxable year, a loan the principal amount of
which does not exceed the amounts paid or
incurred by the taxpayer, with respect to a
trade or business carried on by the taxpayer--
''(I) for the purchase of property
which is placed in service during the
taxable year which is used in the trade
or business of the taxpayer and which
is subject to the allowance for
depreciation provided in section 167 or
is real property used in such trade or
business, or--
''(II) for salaries or wages (other
than for bonuses) of unrelated
employees in such trade or business for
the taxable year.
''(ii) Aggregation of loans.--All loans
with respect to which the taxpayer elects the
application of this paragraph for the taxable
year shall be aggregated for purposes of
determining whether a loan is a qualified small
business loan under clause (i).
''(C) Requirements related to loan repayments.--
''(i) Requirement that loan be repaid
within 5 years.--Paragraph (1) shall not apply
to any loan unless such loan is required, by
its terms, to be repaid within 5 years.
''(ii) Requirement of level amortization.--
Rules similar to the rules of section
72(p)(2)(C) shall apply for purposes of this
subsection.
''(iii) Failure to repay treated as
distribution.--A qualified small business loan
shall not be treated as a distribution from the
individual retirement plan except that any
repayment of a qualified small business loan
which is not made on the date that such payment
is due shall be treated as a distribution from
the individual retirement plan on such date.
''(D) Related persons.--For purposes of this
paragraph, a person shall be treated as related to
another person if the relationship between such persons
would result in the disallowance of losses under
section 267 or 707(b).
''(E) Termination.--Subparagraph (A) shall not
apply to any loan made after December 31, 2010.''.
(b) Effective Date.--
(1) In general.--The amendments made by this section shall
apply to loans made after December 31, 2007.
(2) Distributions prior to date of enactment.--In the case
of any distribution made after December 31, 2007, and before
the date of the enactment of this Act, if the taxpayer so
elects (at such time and in such form and manner as the
Secretary of the Treasury shall prescribe), such distribution
shall be treated as a loan for purposes of section 408(e)(7) of
the Internal Revenue Code of 1986, but only to the extent such
distribution does not exceed the amount described in
subparagraph (B) thereof (in the taxable year of distribution),
and only if beginning on a date not later than 1 year after the
date of the enactment of this Act such distribution meets the
requirements of section 408(e)(7) of such Code.

SEC. 4. QUALIFIED SMALL BUSINESS LOANS FROM QUALIFIED EMPLOYER PLAN.

(a) In General.--Subsection (p) of section 72 of the Internal
Revenue Code of 1986 is amended by adding at the end the following new
paragraph:
''(6) Special rule for qualified small business loans.--
''(A) In general.--On the election of the taxpayer,
paragraph (1) shall not apply to any loan to the extent
that such loan is a qualified small business loan that
meets the requirements of subparagraphs (B)(i) and (C)
of paragraph (2).
''(B) Application of limitation and coordination
with pre-effective date loans.--Any qualified small
business loan shall be taken into account under
paragraph (2) only with respect to amounts received as
a loan (other than qualified small business loans)
after the date of the enactment of this paragraph.
''(C) Qualified small business loan.--For purposes
of this paragraph, the term 'qualified small business
loan' shall have the meaning given such term in section
408(e)(7)(B).
''(D) Termination.--This paragraph shall not apply
to any amount received as a loan after December 31,
2010.''.
(b) Effective Date.--The amendments made by this section shall
apply to loans made after December 31, 2007.
(c) Distributions Prior to Date of Enactment.--In the case of any
distribution made after December 31, 2007, and before the date of the
enactment of this Act, if the taxpayer so elects (at such time and in
such form and manner as the Secretary of the Treasury shall prescribe),
such distribution shall be treated as a loan to which section 72(p)(1)
of the Internal Revenue Code of 1986 does not apply, but only to the
extent such distribution does not exceed the amount described in
section 408(e)(7)(B) of such Code (in the taxable year of
distribution), and only if beginning on a date not later than 1 year
after the date of the enactment of this Act such distribution is
structured as a loan which meets the requirements of subparagraphs
(B)(i) and (C) of section 72(p)(2) of such Code.
Output:
Small Business Tax Relief and Retirement Restoration Act of 2010 - Amends the Internal Revenue Code to permit until December 31, 2010, penalty-free distributions from an individual retirement account (IRA) or a qualified employer plan for the purpose of making loans to a small business to purchase depreciable property to be used by such business or for employee salaries or wages (other than for bonuses). Requires such loans to be repaid to the IRA within five years.