Small Business Tax Relief Act of 1979

Small Business Tax Relief Act of 1979 - Amends the Internal Revenue Code to limit recognition on the gain from the sale or exchange of an unincorporated trade or business prior to the time that the taxpayer attains age 55 by providing that such gain shall be recognized only to the extent that it exceeds the cost of reinvesting in replacement property for another small business venture. Provides for the taxation of such gain, after age 55, as ordinary income according to the ten year averaging rules applicable to lump sum distributions from employee benefit plans.

Increases the additional first year depreciation allowance for small businesses.

Permits a taxpayer election to amortize over a 36 month period expenses for depreciable property which is acquired to put a small business in compliance with Federal regulations and which does not have any economic usefulness for the business.

Exempts domestic international sales corporations (DISC) which have adjusted taxable income of $1,000,000 or less from the limitations on deferral of base period export gross receipts which are applicable to larger corporations.

Permits businesses with gross receipts of less than $1,000,000 to elect the cash method of accounting in reporting income.

Allows a refund to employers of their proportionate share of excess social security payments made on behalf of employees who were employed by two or more employers during the taxable year.

Permits an income tax credit of $5 for each form or document which a small business is required to file pursuant to Federal law.