II 110th CONGRESS 2d Session S. 2552 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.

1.

Short title

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

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.

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.

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.