Short title

This Act may be referred to as the

Small Business Investment and Promotion Act of 2007

Temporary credit against income tax for small businesses, farmers, and fishermen to offset high fuel costs

(a)

In General

Subpart D of part IV of subchapter A of chapter 1 of the Internal Revenue Code of 1986 (relating to business-related credits) is amended by inserting after section 45N the following new section:

45O.

Temporary credit for small businesses, farmers, and fishermen to offset high fuel costs

(a)

Allowance of Credit

In the case of an eligible taxpayer, the excessive fuel cost credit determined under this section is an amount equal to the excessive fuel cost paid or incurred by the taxpayer during the taxable year for any creditable fuel used in any trade or business of the taxpayer. (b)

Excessive Fuel Cost

For purposes of this section— (1)

In general

The term excessive fuel cost means, with respect to any creditable fuel, the excess (if any) of— (A)the amount paid or incurred by the taxpayer for such fuel, over (B)the adjusted base price for such fuel. (2)

Adjusted base price

(A)

In general

The term adjusted base price means, with respect to any creditable fuel, the amount determined by the Secretary to be the applicable Labor Day 2004 price for such fuel adjusted for inflation. (B)

Applicable price

The applicable Labor Day 2004 price for any fuel is the average price for such fuel for the region in which the taxpayer purchased such fuel (as determined using data of the Energy Information Agency of the Department of Energy). (C)

Inflation adjustment

The inflation adjustment shall be determined under the principles of section 1(f); except that, the Secretary shall use estimates of the monthly Consumer Price Index (as defined in such section) where possible to more closely reflect current inflation. (c)

Eligible Taxpayer

For purposes of this section— (1)

In general

The term eligible taxpayer means any person engaged in a trade or business if— (A)such trade or business is— (i)a farming business (as defined in section 263A(e)(4)), or (ii)commercial fishing (as defined in section 3 of the Magnuson-Stevens Fishery Conservation and Management Act (16 U.S.C. 1802)), or (B)such person is a small business. (2)

Small business

The term small business means a trade or business that employs an annual average of not more than 50 employees. (3)

Creditable fuel

The term creditable fuel means— (A)gasoline, (B)diesel fuel, (C)heating oil, and (D)natural gas. (d)

Adjustment of Standard Mileage Rate

An eligible taxpayer may elect, in lieu of the credit under this section, a standard mileage allowance under section 162 equal to 60 cents for each mile traveled during the period described in subsection (e). The Secretary shall modify the standard mileage rate under the preceding sentence to the extent that 60 cents does not accurately reflect that value of the credit under this section. (e)

Application of Section

This section shall apply to fuels purchased during the 2-year period beginning on the date of the enactment of this section.

(b)

Credit To Be Part of General Business Credit

Subsection (b) of section 38 of such Code is amended by striking plus at the end of paragraph (30), by striking the period at the end of paragraph (31) and inserting , plus, and by adding at the end the following new paragraph:

(32)in the case of an eligible taxpayer (as defined in section 45O(c)), the excessive fuel cost credit determined under section 45O(a).

(c)

Clerical Amendment

The table of sections for subpart D of part IV of subchapter A of chapter 1 of such Code is amended by inserting after the item relating to section 45N the following new item:

Sec. 45O. Temporary credit for small businesses, farmers, and fishermen to offset high fuel costs

(d)

Effective Date

The amendments made by this section shall apply to taxable years ending after the date of the enactment of this Act.

Permanent extension of research credit

(a)

In General

Section 41 of the Internal Revenue Code of 1986 (relating to credit for increasing research activities) is amended by striking subsection (h). (b)

Conforming Amendment

Paragraph (1) of section 45C(b) of such Code is amended by striking subparagraph (D). (c)

Effective Date

The amendments made by this section shall apply to amounts paid or incurred after the date of the enactment of this Act.

Treatment of qualified restaurant property, qualified retail improvement property, and certain systems installed in nonresidential buildings as 15-YEAR property for purposes of depreciation deduction

(a)

Qualified Restaurant Property

Clause (v) of section 168(e)(3)(E) of the Internal Revenue Code of 1986 (defining 15-year property) is amended by striking placed in service before January 1, 2008. (b)

Qualified Retail Improvement Property and Certain Systems Installed in Nonresidential Buildings

(1)

15-year recovery period

Subparagraph (E) of section 168(e)(3) of the Internal Revenue Code of 1986 (relating to 15-year property) is amended by striking and at the end of clause (vii), by striking the period at the end of clause (viii) and inserting a comma, and by adding at the end the following new clauses:

(ix)any qualified retail improvement property, and (x)any property— (I)which is part of a heating, ventilation, air conditioning, or commercial refrigeration system, (II)which is installed on or in a building which is nonresidential real property, and (III)the original use of which commences with the taxpayer.

(2)

Definition

Section 168(e) of such Code (relating to classification of property) is amended by adding at the end the following new paragraph:

(8)

Qualified retail improvement property

(A)

In general

The term qualified retail improvement property means any improvement to an interior portion of a building which is nonresidential real property if— (i)such portion is open to the general public, (ii)such portion is used by a trade or business that sells tangible personal property or services to the general public, (iii)such trade or business employs an annual average of not more than 50 employees, and (iv)such improvement is placed in service more than 3 years after the date the building was first placed in service. (B)

Certain improvements not included

Such term shall not include any improvement for which the expenditure is attributable to— (i)the enlargement of the building, (ii)any elevator or escalator, or (iii)the internal structural framework of the building.

(3)

Requirement to use straight line method

Paragraph (3) of section 168(b) of such Code (relating to applicable depreciation method) is amended by adding at the end the following new subparagraphs:

(I)Qualified retail improvement property described in subsection (e)(8). (J)Property described in subsection (e)(3)(E)(x).

(4)

Alternative system

The table contained in section 168(g)(3)(B) of such Code (relating to special rule for certain property assigned to classes) is amended by inserting after the item relating to subparagraph (E)(viii) the following new items:

(E)(ix)39 (E)(x)25

(c)

Effective Date

The amendments made by this section shall apply to property placed in service after the date of the enactment of this Act.

Authorizations

(a)

Advanced Technology Program

There are authorized to be appropriated to the Secretary of Commerce for the Advanced Technology Program under section 28 of the National Institute of Standards and Technology Act (15 U.S.C. 278n) $145,000,000 for fiscal year 2008 and $150,000,000 for fiscal year 2009. (b)

SCORE

There are authorized to be appropriated for the Service Corps of Retired Executives (SCORE) under section 8(b)(1)(B) of the Small Business Act (15 U.S.C. 637(b)(1)(B) $8,000,000 for fiscal year 2008 and $8,500,000 for fiscal year 2009. (c)

Small Business Development Centers

There are authorized to be appropriated for small business development centers under section 21 of the Small Business Act (15 U.S.C. 648) $140,000,000 fiscal year 2008 and $142,500,000 for fiscal year 2009. (d)

Manufacturing Extension Partnership

There are authorized to be appropriated to the Secretary of Commerce for the Manufacturing Extension Partnership program under sections 25 and 26 of the National Institute of Standards and Technology Act (15 U.S.C. 278k and 278l) $120,000,000 for fiscal year 2008 and $125,000,000 for fiscal year 2009. (e)

Women’s Business Centers

There are authorized to be appropriated for the Women’s Business Center Program under section 29 of the Small Business Act (15 U.S.C. 656) $15,500,000 for fiscal year 2008 and $16,000,000 for fiscal year 2009.

Sense of Congress on funding for small business programs

(a)

Funding for 7(a) Loan Program

It is the sense of Congress that Congress should appropriate $79,000,000 for offsetting the cost of borrowers participating in the loan program under section 7(a) of the Small Business Act (15 U.S.C. 636(a)). (b)

Funding for Other Programs

It is the sense of Congress that Congress should appropriate funds for the Advanced Technology Program, the Service Corps of Retired Executives, the Small Business Development Centers, the Manufacturing Extension Partnership, and the Women’s Business Center Program at the levels authorized under section 4 of this Act.

Small business contracting goal

(a)

Application to Contracts Performed Overseas

Section 15(g)(1) of the Small Business Act (15 U.S.C.) is amended in the second sentence by inserting (including awards for contracts performed outside the United States) after all prime contract awards. (b)

Effective Date

The amendment made by subsection (a) shall apply with respect to fiscal years beginning after September 30, 2007.