II 110th CONGRESS 2d Session S. 2553 IN THE SENATE OF THE UNITED STATES January 24, 2008 Mr. Kerry introduced the following bill; which was read twice and referred to the Committee on Finance A BILL To modify certain fees applicable under the Small Business Act for 2008, to make an emergency appropriation for certain small business programs, and to amend the Internal Revenue Code of 1986 to provide increased expensing for 2008, to provide a 5-year carryback for certain net operating losses, and for other purposes.

1.

Short title

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

2.

Economic stimulus for small business concerns

(a)

In general

For fiscal year 2008, and to the extent the cost of such reduction in fees are offset by appropriations— (1)the Administrator shall, in lieu of the fee otherwise applicable under section 7(a)(23)(A) of the Small Business Act (15 U.S.C. 636(a)(23)(A)), collect an annual fee in an amount equal to .25 percent of the outstanding balance of the deferred participation share of a loan made under section 7(a) of the Small Business Act (15 U.S.C. 636(a)) to a small business concern; and (2)with respect to each loan guaranteed under section 7(a) of the Small Business Act (15 U.S.C. 636(a)), the Administrator shall— (A)in lieu of the fee otherwise applicable under section 7(a)(18)(A) of the Small Business Act (15 U.S.C. 636(a)(18)(A)), collect a guarantee fee in an amount equal to— (i)1 percent of the deferred participation share of a total loan amount that is not more than $150,000; (ii)2.5 percent of the deferred participation share of a total loan amount that is more than $150,000, and not more than $700,000; and (iii)3 percent of the deferred participation share of a total loan amount that is more than $700,000; and (B)in lieu of the fee otherwise applicable under section 7(a)(18)(A)(iv) of the Small Business Act (15 U.S.C. 636(a)(18)(A)(iv)), collect no fee. (b)

Appropriation

(1)

In general

There are appropriated, out of any money in the Treasury not otherwise appropriated, for the fiscal year ending September 30, 2008— (A)$150,000,000 for the Business Loans Program Account of the Administration, for loan subsidies and for loan modifications for loans to small business concerns authorized under subsection (a), to remain available until expended; (B)$2,000,000 for the Business Loans Program Account of the Administration, for direct loans under the Microloan Program under section 7(m) of the Small Business Act (15 U.S.C. 636(m)), to remain available until expended; and (C)$10,000,000 for the Salaries and Expenses Account of the Administration, for marketing, management, and technical assistance under section 7(m)(4) of the Small Business Act (15 U.S.C. 636(m)(4)) by intermediaries that make microloans under the Microloan Program, to remain available until expended. (2)

Emergency designation

The amounts provided under this subsection are designated as an emergency requirement pursuant to section 204 of S. Con. Res. 21 (110th Congress). (c)

Budgetary treatment of loans and financings

Assistance made available under any loan made or approved by the Administration under section 7(a) of the Small Business Act (15 U.S.C. 636(a)) during fiscal year 2008, shall be treated as separate programs of the Administration for purposes of the Federal Credit Reform Act of 1990 (2 U.S.C. 661 et seq.) only. (d)

Definitions

In this section— (1)the terms Administration and Administrator means the Small Business Administration and the Administrator thereof, respectively; and (2)the term small business concern has the same meaning as in section 3 of the Small Business Act (15 U.S.C. 632).

3.

Increased expensing for small businesses

(a)

In general

Subsection (b) of section 179 of the Internal Revenue Code of 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.

4.

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.