[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[S. 2552 Introduced in Senate (IS)]







110th CONGRESS
  2d Session
                                S. 2552

  To amend the Internal Revenue Code of 1986 to provide a stimulus to 
small businesses by increasing expensing for small businesses in 2008, 
 extending the length of the carryback period for net operating losses 
   during 2007 and 2008, and extending the research and development 
                                credit.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                            January 24, 2008

  Ms. Snowe (for herself, Mr. Kerry, and Mr. Coleman) introduced the 
 following bill; which was read twice and referred to the Committee on 
                                Finance

_______________________________________________________________________

                                 A BILL


 
  To amend the Internal Revenue Code of 1986 to provide a stimulus to 
small businesses by increasing expensing for small businesses in 2008, 
 extending the length of the carryback period for net operating losses 
   during 2007 and 2008, and extending the research and development 
                                credit.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Small Business Stimulus Act of 
2008''.

SEC. 2. INCREASED EXPENSING FOR SMALL BUSINESSES.

    (a) In General.--Subsection (b) of section 179 of the Internal 
Revenue Code fo 1986 is amended by adding at the end the following new 
paragraph:
            ``(7) Special rules for 2008.--In the case of any taxable 
        year beginning in 2008, this subsection shall be applied--
                    ``(A) by substituting `$200,000' for `$25,000 
                ($125,000 in the case of taxable years beginning after 
                2006 and before 2011)' in paragraph (1), and
                    ``(B) by substituting `$800,000' for `$200,000 
                ($500,000 in the case of taxable years beginning after 
                2006 and before 2011)'.''.
    (b) Effective Date.--The amendment made by this section shall apply 
to taxable years beginning after December 31, 2007.

SEC. 3. CARRYBACK OF CERTAIN NET OPERATING LOSSES ALLOWED FOR 5 YEARS; 
              TEMPORARY SUSPENSION OF 90 PERCENT AMT LIMIT.

    (a) In General.--Subparagraph (H) of section 172(b)(1) of the 
Internal Revenue Code of 1986 is amended--
            (1) by inserting ``5-year carryback of certain losses.--'' 
        after ``(H)'', and
            (2) by striking ``or 2002'' and inserting ``, 2002, 2007, 
        or 2008''.
    (b) Temporary Suspension of 90 Percent Limit on Certain NOL 
Carrybacks.--Subclause (I) of section 56(d)(1)(A)(ii) of the Internal 
Revenue Code of 1986 is amended--
            (1) by striking ``or 2002'' and inserting ``, 2002, 2007, 
        or 2008'', and
            (2) by striking ``and 2002'' and inserting ``, 2002, 2007, 
        or 2008''.
    (c) Effective Dates.--
            (1) In general.--Except as provided in paragraph (2), the 
        amendments made by this section shall apply to net operating 
        losses for taxable years ending after December 31, 2006.
            (2) Election.--In the case of a net operating loss for a 
        taxable year ending during 2007 or 2008--
                    (A) any election made under section 172(b)(3) of 
                the Internal Revenue Code of 1986 may (notwithstanding 
                such section) be revoked before November 1, 2008, and
                    (B) any election made under section 172(j) of such 
                Code shall (notwithstanding such section) be treated as 
                timely made if made before November 1, 2008.

SEC. 4. EXTENSION OF RESEARCH CREDIT.

    (a) In General.--Section 41(h) of the Internal Revenue Code of 1986 
(relating to termination) is amended by striking ``December 31, 2007'' 
and inserting ``December 31, 2008''.
    (b) Conforming Amendment.--Subparagraph (D) of section 45C(b)(1) of 
such Code (relating to special rule) is amended by striking ``December 
31, 2007'' and inserting ``December 31, 2008''.
    (c) Effective Date.--The amendments made by this section shall 
apply to amounts paid or incurred after December 31, 2007.
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