Help Small Businesses Start and Grow Act of 2010 - Amends the Internal Revenue Code to: (1) allow an increased tax deduction for business start-up expenditures in 2009, 2010, or 2011; (2) allow a standard tax deduction for the business use of a home; (3) increase the rate of the tax deduction for business meals and entertainment expenses; and (4) extend bonus depreciation allowances through 2012.
Directs the Administrator of the Small Business Administration (SBA) to: (1) establish and carry out a small business direct lending program; (2) report to the House and Senate Small Business Committees on the loan program, including the number and amount of loans made under the program. Requires the Comptroller General to evaluate the effectiveness of the program and identify any waste or abuse relating to the program.
[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4637 Introduced in House (IH)]
111th CONGRESS
2d Session
H. R. 4637
To amend the Internal Revenue Code of 1986 to increase the amount
allowed as a deduction for start-up expenditures, to provide a standard
home office deduction, to increase the amount allowed as a deduction
for meals and entertainment expenses of small businesses, and to extend
bonus depreciation, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
February 22, 2010
Mr. Hall of New York introduced the following bill; which was referred
to the Committee on Ways and Means, and in addition to the Committee on
Small Business, for a period to be subsequently determined by the
Speaker, in each case for consideration of such provisions as fall
within the jurisdiction of the committee concerned
_______________________________________________________________________
A BILL
To amend the Internal Revenue Code of 1986 to increase the amount
allowed as a deduction for start-up expenditures, to provide a standard
home office deduction, to increase the amount allowed as a deduction
for meals and entertainment expenses of small businesses, and to extend
bonus depreciation, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``Help Small
Businesses Start and Grow Act of 2010''.
(b) Table of Contents.--The table of contents for this Act is as
follows:
Sec. 1. Short title; table of contents.
TITLE I--TAX RELIEF
Sec. 101. Increase in amount allowed as deduction for start-up
expenditures.
Sec. 102. Standard deduction for business use of home.
Sec. 103. Increased meals and entertainment expense deduction for small
businesses.
Sec. 104. Two-year extension of bonus depreciation.
TITLE II--SMALL BUSINESS LOANS
Sec. 202. Small business direct lending program.
TITLE I--TAX RELIEF
SEC. 101. INCREASE IN AMOUNT ALLOWED AS DEDUCTION FOR START-UP
EXPENDITURES.
(a) In General.--Subsection (b) of section 195 of the Internal
Revenue Code of 1986 is amended by adding at the end the following:
``(3) Special rule for taxable years beginning in 2009,
2010, or 2011.--In the case of a taxable year beginning in
2009, 2010, or 2011, paragraph (1)(A)(ii) shall be applied--
``(A) by substituting `$50,000' for `$5,000', and
``(B) by substituting `$75,000' for `$50,000'.''.
(b) Effective Date.--The amendments made by this section shall
apply to amounts paid or incurred in taxable years beginning after the
date of the enactment of this Act.
SEC. 102. STANDARD DEDUCTION FOR BUSINESS USE OF HOME.
(a) In General.--Subsection (c) of section 280A of the Internal
Revenue Code of 1986 (relating to disallowance of certain expenses in
connection with business use of home, rental of vacation homes, etc.)
is amended by adding at the end the following new paragraph:
``(7) Standard home office deduction.--
``(A) In general.--In the case of an individual
that is allowed a deduction for the use of a home
office because of a use described in paragraphs (1),
(2), or (4) of this subsection, notwithstanding the
limitations of paragraph (5), if such individual elects
the application of this paragraph for the taxable year,
such individual shall be allowed a deduction equal to
the standard home office deduction for the taxable year
in lieu of the deductions otherwise allowable under
this chapter for such taxable year by reason of being
attributed to such use.
``(B) Standard home office deduction amount.--For
purposes of this paragraph, the standard home office
deduction is the lesser of--
``(i) $2,500, or
``(ii) the gross income derived from the
individual's trade or business for which such
use occurs.
``(C) Inflation adjustment.--In the case of any
taxable year beginning in a calendar year after 2010,
the dollar amount in subparagraph (B)(i) shall be
increased by an amount equal to--
``(i) such dollar amount, multiplied by
``(ii) the cost-of-living adjustment
determined under section 1(f)(3) for the
calendar year in which the taxable year begins,
determined by substituting `2009' for `1992' in
subparagraph (B) thereof.
Any increase determined under the preceding sentence
shall be rounded to the nearest multiple of $100.''.
(b) Effective Date.--The amendment made by this section shall apply
to taxable years beginning after the date of the enactment of this Act.
SEC. 103. INCREASED MEALS AND ENTERTAINMENT EXPENSE DEDUCTION FOR SMALL
BUSINESSES.
(a) In General.--Subsection (n) of section 274 of the Internal
Revenue Code of 1986 is amended by adding at the end the following new
paragraph:
``(4) Increased percentage for small business expenses.--
``(A) In general.--In the case of expenses or items
described in paragraph (1) paid or incurred by the
taxpayer in carrying on an eligible trade or business,
such paragraph shall be applied by substituting `80
percent' for `50 percent'.
``(B) Eligible trade or business.--
``(i) In general.--For purposes of
subparagraph (A), the term `eligible trade or
business' means, with respect to any taxable
year, a trade or business (whether or not
incorporated) which employed an average of less
than 50 employees on business days during the
taxable year.
``(ii) Controlled groups.--For purposes of
clause (i), all persons treated as a single
employer under subsection (b), (c), (m), or (o)
of section 414 shall be treated as a single
employer.''.
(b) Effective Date.--The amendment made by this section shall apply
to expenses paid or incurred after the date of the enactment of this
Act.
SEC. 104. TWO-YEAR EXTENSION OF BONUS DEPRECIATION.
(a) In General.--Paragraph (2) of section 168(k) is amended--
(1) by striking ``January 1, 2011'' and inserting ``January
1, 2014'', and
(2) by striking ``January 1, 2010'' each place it appears
and inserting ``January 1, 2013''.
(b) Conforming Amendments.--
(1) The heading for subsection (k) of section 168 of such
Code is amended by striking ``January 1, 2010'' and inserting
``January 1, 2013''.
(2) The heading for clause (ii) of section 168(k)(2)(B) of
such Code is amended by striking ``pre-january 1, 2010'' and
inserting ``pre-january 1, 2013''.
(3) Paragraph (5) of section 168(l) is amended by striking
subparagraph (B), by adding ``and'' at the end of subparagraph
(A), and by redesignating subparagraph (C) as subparagraph (B).
(4) Subparagraph (C) of section 168(n)(2) of such Code is
amended by striking clause (ii), by adding ``and'' at the end
of clause (i), and by redesignating clause (iii) as clause
(ii).
(5) Subparagraph (B) of section 1400N(d)(3) of such Code is
amended by striking ``January 1, 2010'' and inserting ``January
1, 2013''.
(c) Effective Date.--The amendments made by this section shall
apply to property placed in service after December 31, 2009.
TITLE II--SMALL BUSINESS LOANS
SEC. 202. SMALL BUSINESS DIRECT LENDING PROGRAM.
(a) Establishment.--The Administrator of the Small Business
Administration shall establish and carry out a program under which the
Administrator is authorized to make loans directly to eligible small
business concerns (in this section referred to as the ``program'').
(b) Administration.--Except as otherwise provided under this
section and to the extent practicable, the Administrator of the Small
Business Administration shall carry out the program--
(1) using the administrative resources of the Small
Business Administration; and
(2) in a manner similar to the loan program under section
7(a) of the Small Business Act (15 U.S.C. 636(a)).
(c) Use of Loan Funds.--Amounts from a loan made under the program
may be used by a small business concern for the operation or expansion
of such concern or for any other purpose allowed under section 7(a) of
the Small Business Act (15 U.S.C. 636(a)).
(d) Loan Amount.--The maximum amount of a loan made under the
program shall be $1,500,000.
(e) Loan Term.--The maximum term for repayment of a loan made under
the program shall be 25 years.
(f) Loan Interest Rate.--The interest rate with respect to a loan
made under the program shall be the prime rate (as determined by the
Administrator of the Small Business Administration).
(g) Accountability.--
(1) SBA reports.--Not later than 30 days after the date of
enactment of this Act and every month thereafter, the
Administrator of the Small Business Administration shall submit
to the Committee on Small Business of the House of
Representatives and the Committee on Small Business and
Entrepreneurship of the Senate a report describing--
(A) the number of loans made under the program;
(B) the amounts of loans made under the program;
(C) the uses of loans made under the program;
(D) repayment progress with respect to loans made
under the program;
(E) the default rate with respect to loans made
under the program; and
(F) other relevant information with respect to the
program.
(2) GAO reports.--
(A) Review.--The Comptroller General of the United
States shall conduct a review of the program to
evaluate the effectiveness of the program and identify
any waste or abuse relating to the program.
(B) Reports.--Not later than 90 days after the date
of enactment of this Act and quarterly thereafter, the
Comptroller General shall submit to the Committee on
Small Business of the House of Representatives and the
Committee on Small Business and Entrepreneurship of the
Senate a report describing the results of the review
conducted under subparagraph (A).
(h) Definitions.--In this section, the following definitions apply:
(1) Eligible small business concern.--The term ``eligible
small business concern'' means a small business concern that
the Administrator of the Small Business Administration
determines--
(A) is economically healthy;
(B) has good credit; and
(C) is unable to obtain a loan on reasonable terms
from a non-Federal source (which may be demonstrated
with respect to a small business concern by evidence
that a lender discontinued a line of credit of such
concern notwithstanding the good credit of such
concern).
(2) Small business concern.--The term ``small business
concern'' has the meaning given such term under section 3(a) of
the Small Business Act (15 U.S.C. 632(a)).
(i) Authorization of Appropriations.--There is authorized to be
appropriated to the Administrator of the Small Business Administration
$10,000,000,000 to carry out the program, including the hiring of
necessary personnel.
(j) Termination.--The program shall terminate on the date that is 2
years after the date of enactment of this Act.
<all>
Introduced in House
Introduced in House
Referred to the Subcommittee on Finance and Tax.
Referred to House Ways and Means
Referred to the Committee on Ways and Means, and in addition to the Committee on Small Business, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
Referred to House Small Business
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