A bill to amend the Internal Revenue Code of 1954 to increase the accumulated earnings credit, to increase the amount of used equipment eligible for the investment tax credit, and to allow certain small businesses to use the cash method of accounting without regard to inventories.
Small Business Earnings Retention Act of 1981 - Amends the Internal Revenue Code to: (1) permit businesses to accumulate up to $500,000 of earnings without incurring liability for the tax on accumulated earnings; (2) increase from $100,000 to $500,000 the dollar amount of used investment property eligible for the investment tax credit; and (3) permit businesses with gross receipts of less than $1,000,000 for the last two preceding taxable years to elect to use the cash method of accounting in reporting inventories.
Became Public Law No: 97-34.
Introduced in House
Introduced in House
Referred to House Committee on Ways and Means.
See H.R.4242.
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