[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1091 Introduced in House (IH)]






109th CONGRESS
  1st Session
                                H. R. 1091

    To amend the Internal Revenue Code of 1986 to provide for small 
business tax incentives, to amend the Fair Labor Standards Act of 1938 
 to increase the minimum wage and to increase the exemption for annual 
 gross volume of sales made or business done by an enterprise, and for 
                            other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             March 3, 2005

 Mr. English of Pennsylvania introduced the following bill; which was 
  referred to the Committee on Ways and Means, and in addition to the 
     Committee on Education and the Workforce, 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 provide for small 
business tax incentives, to amend the Fair Labor Standards Act of 1938 
 to increase the minimum wage and to increase the exemption for annual 
 gross volume of sales made or business done by an enterprise, 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. SMALL BUSINESS TAX INCENTIVES.

    (a) Increase in Section 179 Expensing.--
            (1) Increase in dollar limitation made permanent.--
        Paragraph (1) of section 179(b) of the Internal Revenue Code of 
        1986 (relating to dollar limitation) is amended by striking 
        ``$25,000 ($100,000 in the case of taxable years beginning 
        after 2002 and before 2008)'' and inserting ``$100,000''.
            (2) Increase in threshold for reduction of dollar 
        limitation.--Paragraph (2) of section 179(b) of such Code 
        (relating to reduction in limitation) is amended by striking 
        ``$200,000 ($400,000 in the case of taxable years beginning 
        after 2002 and before 2008)'' and inserting ``$500,000''.
            (3) Inflation adjustment.--Paragraph (5) of section 179(b) 
        of such Code (relating to inflations adjustments) is amended to 
        read as follows:
            ``(5) Inflation adjustments.--
                    ``(A) Dollar limitation.--In the case of any 
                taxable year beginning in a calendar year after 2005, 
                the $100,000 amount in paragraph (1) shall be increased 
                by an amount equal to--
                            ``(i) such dollar amount, multiplied by
                            ``(ii) the cost-of-living adjustment under 
                        section 1(f)(3) for the calendar year in which 
                        the taxable year begins determined by 
                        substituting `calendar year 2002' for `calendar 
                        year 1992' in subparagraph (B) thereof.
                    ``(B) Phaseout amount.--In the case of any taxable 
                year beginning in a calendar year after 2006, the 
                $500,000 amount in paragraph (2) shall be increased by 
                an amount equal to--
                            ``(i) such dollar amount, multiplied by
                            ``(ii) the cost-of-living adjustment under 
                        section 1(f)(3) for the calendar year in which 
                        the taxable year begins determined by 
                        substituting `calendar year 2005' for `calendar 
                        year 1992' in subparagraph (B) thereof.
                    ``(C) Rounding.--
                            ``(i) Dollar limitation.--If the amount in 
                        paragraph (1) as increased under subparagraph 
                        (A) is not a multiple of $1,000, such amount 
                        shall be rounded to the nearest multiple of 
                        $1,000.
                            ``(ii) Phaseout amount.--If the amount in 
                        paragraph (2) as increased under subparagraph 
                        (B) is not a multiple of $10,000, such amount 
                        shall be rounded to the nearest multiple of 
                        $10,000.''.
            (4) Effective date.--The amendments made by this subsection 
        shall apply to taxable years beginning after December 31, 2005.
    (b) Work Opportunity Credit, Welfare-to-Work Credit, and Research 
Credit Allowed Against Alternative Minimum Tax.--
            (1) In general.--Subparagraph (B) of section 38(c)(4) of 
        the Internal Revenue Code of 1986 is amended by striking the 
        period at the end of clause (ii)(II) and inserting a comma and 
        by adding at the end the following new clauses:
                            ``(iii) the credit determined under section 
                        51,
                            ``(iv) the credit determined under section 
                        51A, and
                            ``(v) the credit determined under section 
                        41.''.
            (2) Effective date.--The amendments made by this subsection 
        shall apply to taxable years beginning after December 31, 2005.

SEC. 2. STANDARD HOME OFFICE DEDUCTION.

    (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.--If the taxpayer 
        elects (at such time and in such form and manner as the 
        Secretary may prescribe) to have this paragraph apply for any 
        taxable year, in the case of a use described in paragraph (1), 
        (2), or (4), and in the case of a use described in paragraph 
        (3) where the dwelling unit is used by the taxpayer during the 
        taxable year as a residence--
                    ``(A) there shall be allowed as a deduction an 
                amount equal to $2,500, and
                    ``(B) no deduction otherwise allowable under this 
                chapter shall be allowed with respect to such use.''.
    (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. 3. MINIMUM WAGE PROVISIONS.

    (a) Exemption for Small Employers.--
            (1) In general.--Section 6 of the Fair Labor Standards Act 
        of 1938 (29 U.S.C. 206) is amended--
                    (A) in subsection (a), by inserting after ``Every 
                employer'' the following: ``who employs ten or more 
                employees''; and
                    (B) in subsection (b), by inserting after ``Every 
                employer'' the following: ``who employs ten or more 
                employees''.
            (2) Effective date.--The amendments made by this subsection 
        shall apply beginning October 1, 2006.
    (b) Phased Increase.--Section 6(a) of such Act (29 U.S.C. 206(a)) 
is amended by striking paragraph (1) and inserting the following new 
paragraph:
            ``(1) except as otherwise provided in this section, not 
        less than $5.15 an hour through the period ending September 30, 
        2006, not less than $5.50 an hour during the year beginning 
        October 1, 2006, not less than $6.00 an hour during the year 
        beginning October 1, 2007, and not less than $6.50 an hour 
        beginning October 1, 2008;''.

SEC. 4. INCREASED EXEMPTION FOR ANNUAL GROSS VOLUME OF SALES MADE OR 
              BUSINESS DONE BY AN ENTERPRISE.

    Section 3(s)(1)(A)(ii) of the Fair Labor Standards Act of 1938 (29 
U.S.C. 203(s)(1)(A)(ii)) is amended to read as follows:
                    ``(ii) is an enterprise whose gross volume of sales 
                made or business done during the taxable year 
                (exclusive of excise taxes at the retail level that are 
                separately stated) is not less than $500,000 in the 
                case of taxable years ending before October 1, 2006, 
                not less than $650,000 in the case of taxable years 
                ending during the year beginning October 1, 2006, not 
                less than $800,000 in the case of taxable years ending 
                during the year beginning October 1, 2007, and not less 
                than $1,000,000 in the case of taxable years ending 
                after September 30, 2008;''.

SEC. 5. EARNED INCOME EXCLUSION UNDER THE SSI PROGRAM.

    (a) In General.--Section 1612(b) of the Social Security Act (42 
U.S.C. 1382a(b)) is amended--
            (1) by striking ``and'' at the end of paragraph (22);
            (2) by striking the period at the end of paragraph (23) and 
        inserting ``; and''; and
            (3) by adding at the end the following:
            ``(24)(A) if such individual does not have an eligible 
        spouse, the amount (if any) by which the minimum wage rate in 
        effect for the month under section 6 of the Fair Labor 
        Standards Act of 1938 multiplied by the number of hours for 
        which such individual is gainfully employed during the month 
        exceeds the total amount of earned income of such individual 
        excluded by the preceding provisions of this subsection for the 
        month; or
            ``(B) if such individual has an eligible spouse, the amount 
        (if any) by which the minimum wage rate in effect for the month 
        under section 6 of the Fair Labor Standards Act of 1938 
        multiplied by the total number of hours for which such 
        individual and such spouse are gainfully employed during the 
        month exceeds the total amount of earned income of such 
        individual and such spouse excluded by the preceding provisions 
        of this subsection for the month.''.
    (b) Effective Date.--The amendments made by subsection (a) shall 
take effect on October 1, 2006, and shall apply to benefits for months 
beginning on or after such date.
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