I 111th CONGRESS 1st Session H. R. 3952 IN THE HOUSE OF REPRESENTATIVES October 28, 2009 Ms. Titus (for herself, Mr. Olson, Ms. Berkley, Mr. Hall of New York, Mr. Paul, Mrs. McMorris Rodgers, and Mr. Manzullo) introduced the following bill; which was referred to the Committee on Ways and Means A BILL To amend the Internal Revenue Code of 1986 increase the amount allowable as a deduction for meals and entertainment expenses of small businesses.

1.

Short title

This Act may be cited as the Helping Small Businesses Grow and Prosper Act of 2009.

2.

Increased meals and entertainment expense deduction for small businesses

(a)

In general

Subsection (n) of section 274 of the Internal Revenue Code of 1986 is amended by adding at the end the following new paragraph: (4)

Increased percentage for small business expenses

(A)

In general

In the case of expenses or items described in paragraph (1) paid or incurred by the taxpayer in carrying on an eligible trade or business, such paragraph shall be applied by substituting 80 percent for 50 percent. (B)

Eligible trade or business

(i)

In general

For purposes of subparagraph (A), the term eligible trade or business means, with respect to any taxable year, a trade or business (whether or not incorporated) which employed an average of less than 50 employees on business days during the taxable year. (ii)

Controlled groups

For purposes of clause (i), all persons treated as a single employer under subsection (b), (c), (m), or (o) of section 414 shall be treated as a single employer. . (b)

Effective date

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