[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4637 Introduced in House (IH)]

111th CONGRESS
  2d Session
                                H. R. 4637

   To amend the Internal Revenue Code of 1986 to increase the amount 
allowed as a deduction for start-up expenditures, to provide a standard 
 home office deduction, to increase the amount allowed as a deduction 
for meals and entertainment expenses of small businesses, and to extend 
              bonus depreciation, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                           February 22, 2010

Mr. Hall of New York introduced the following bill; which was referred 
to the Committee on Ways and Means, and in addition to the Committee on 
   Small Business, for a period to be subsequently determined by the 
  Speaker, in each case for consideration of such provisions as fall 
           within the jurisdiction of the committee concerned

_______________________________________________________________________

                                 A BILL


 
   To amend the Internal Revenue Code of 1986 to increase the amount 
allowed as a deduction for start-up expenditures, to provide a standard 
 home office deduction, to increase the amount allowed as a deduction 
for meals and entertainment expenses of small businesses, and to extend 
              bonus depreciation, and for other purposes.

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

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Help Small 
Businesses Start and Grow Act of 2010''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; table of contents.
                          TITLE I--TAX RELIEF

Sec. 101. Increase in amount allowed as deduction for start-up 
                            expenditures.
Sec. 102. Standard deduction for business use of home.
Sec. 103. Increased meals and entertainment expense deduction for small 
                            businesses.
Sec. 104. Two-year extension of bonus depreciation.
                     TITLE II--SMALL BUSINESS LOANS

Sec. 202. Small business direct lending program.

                          TITLE I--TAX RELIEF

SEC. 101. INCREASE IN AMOUNT ALLOWED AS DEDUCTION FOR START-UP 
              EXPENDITURES.

    (a) In General.--Subsection (b) of section 195 of the Internal 
Revenue Code of 1986 is amended by adding at the end the following:
            ``(3) Special rule for taxable years beginning in 2009, 
        2010, or 2011.--In the case of a taxable year beginning in 
        2009, 2010, or 2011, paragraph (1)(A)(ii) shall be applied--
                    ``(A) by substituting `$50,000' for `$5,000', and
                    ``(B) by substituting `$75,000' for `$50,000'.''.
    (b) Effective Date.--The amendments made by this section shall 
apply to amounts paid or incurred in taxable years beginning after the 
date of the enactment of this Act.

SEC. 102. STANDARD DEDUCTION FOR BUSINESS USE OF HOME.

    (a) In General.--Subsection (c) of section 280A of the Internal 
Revenue Code of 1986 (relating to disallowance of certain expenses in 
connection with business use of home, rental of vacation homes, etc.) 
is amended by adding at the end the following new paragraph:
            ``(7) Standard home office deduction.--
                    ``(A) In general.--In the case of an individual 
                that is allowed a deduction for the use of a home 
                office because of a use described in paragraphs (1), 
                (2), or (4) of this subsection, notwithstanding the 
                limitations of paragraph (5), if such individual elects 
                the application of this paragraph for the taxable year, 
                such individual shall be allowed a deduction equal to 
                the standard home office deduction for the taxable year 
                in lieu of the deductions otherwise allowable under 
                this chapter for such taxable year by reason of being 
                attributed to such use.
                    ``(B) Standard home office deduction amount.--For 
                purposes of this paragraph, the standard home office 
                deduction is the lesser of--
                            ``(i) $2,500, or
                            ``(ii) the gross income derived from the 
                        individual's trade or business for which such 
                        use occurs.
                    ``(C) Inflation adjustment.--In the case of any 
                taxable year beginning in a calendar year after 2010, 
                the dollar amount in subparagraph (B)(i) shall be 
                increased by an amount equal to--
                            ``(i) such dollar amount, multiplied by
                            ``(ii) the cost-of-living adjustment 
                        determined under section 1(f)(3) for the 
                        calendar year in which the taxable year begins, 
                        determined by substituting `2009' for `1992' in 
                        subparagraph (B) thereof.
                Any increase determined under the preceding sentence 
                shall be rounded to the nearest multiple of $100.''.
    (b) Effective Date.--The amendment made by this section shall apply 
to taxable years beginning after the date of the enactment of this Act.

SEC. 103. 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.

SEC. 104. TWO-YEAR EXTENSION OF BONUS DEPRECIATION.

    (a) In General.--Paragraph (2) of section 168(k) is amended--
            (1) by striking ``January 1, 2011'' and inserting ``January 
        1, 2014'', and
            (2) by striking ``January 1, 2010'' each place it appears 
        and inserting ``January 1, 2013''.
    (b) Conforming Amendments.--
            (1) The heading for subsection (k) of section 168 of such 
        Code is amended by striking ``January 1, 2010'' and inserting 
        ``January 1, 2013''.
            (2) The heading for clause (ii) of section 168(k)(2)(B) of 
        such Code is amended by striking ``pre-january 1, 2010'' and 
        inserting ``pre-january 1, 2013''.
            (3) Paragraph (5) of section 168(l) is amended by striking 
        subparagraph (B), by adding ``and'' at the end of subparagraph 
        (A), and by redesignating subparagraph (C) as subparagraph (B).
            (4) Subparagraph (C) of section 168(n)(2) of such Code is 
        amended by striking clause (ii), by adding ``and'' at the end 
        of clause (i), and by redesignating clause (iii) as clause 
        (ii).
            (5) Subparagraph (B) of section 1400N(d)(3) of such Code is 
        amended by striking ``January 1, 2010'' and inserting ``January 
        1, 2013''.
    (c) Effective Date.--The amendments made by this section shall 
apply to property placed in service after December 31, 2009.

                     TITLE II--SMALL BUSINESS LOANS

SEC. 202. SMALL BUSINESS DIRECT LENDING PROGRAM.

    (a) Establishment.--The Administrator of the Small Business 
Administration shall establish and carry out a program under which the 
Administrator is authorized to make loans directly to eligible small 
business concerns (in this section referred to as the ``program'').
    (b) Administration.--Except as otherwise provided under this 
section and to the extent practicable, the Administrator of the Small 
Business Administration shall carry out the program--
            (1) using the administrative resources of the Small 
        Business Administration; and
            (2) in a manner similar to the loan program under section 
        7(a) of the Small Business Act (15 U.S.C. 636(a)).
    (c) Use of Loan Funds.--Amounts from a loan made under the program 
may be used by a small business concern for the operation or expansion 
of such concern or for any other purpose allowed under section 7(a) of 
the Small Business Act (15 U.S.C. 636(a)).
    (d) Loan Amount.--The maximum amount of a loan made under the 
program shall be $1,500,000.
    (e) Loan Term.--The maximum term for repayment of a loan made under 
the program shall be 25 years.
    (f) Loan Interest Rate.--The interest rate with respect to a loan 
made under the program shall be the prime rate (as determined by the 
Administrator of the Small Business Administration).
    (g) Accountability.--
            (1) SBA reports.--Not later than 30 days after the date of 
        enactment of this Act and every month thereafter, the 
        Administrator of the Small Business Administration shall submit 
        to the Committee on Small Business of the House of 
        Representatives and the Committee on Small Business and 
        Entrepreneurship of the Senate a report describing--
                    (A) the number of loans made under the program;
                    (B) the amounts of loans made under the program;
                    (C) the uses of loans made under the program;
                    (D) repayment progress with respect to loans made 
                under the program;
                    (E) the default rate with respect to loans made 
                under the program; and
                    (F) other relevant information with respect to the 
                program.
            (2) GAO reports.--
                    (A) Review.--The Comptroller General of the United 
                States shall conduct a review of the program to 
                evaluate the effectiveness of the program and identify 
                any waste or abuse relating to the program.
                    (B) Reports.--Not later than 90 days after the date 
                of enactment of this Act and quarterly thereafter, the 
                Comptroller General shall submit to the Committee on 
                Small Business of the House of Representatives and the 
                Committee on Small Business and Entrepreneurship of the 
                Senate a report describing the results of the review 
                conducted under subparagraph (A).
    (h) Definitions.--In this section, the following definitions apply:
            (1) Eligible small business concern.--The term ``eligible 
        small business concern'' means a small business concern that 
        the Administrator of the Small Business Administration 
        determines--
                    (A) is economically healthy;
                    (B) has good credit; and
                    (C) is unable to obtain a loan on reasonable terms 
                from a non-Federal source (which may be demonstrated 
                with respect to a small business concern by evidence 
                that a lender discontinued a line of credit of such 
                concern notwithstanding the good credit of such 
                concern).
            (2) Small business concern.--The term ``small business 
        concern'' has the meaning given such term under section 3(a) of 
        the Small Business Act (15 U.S.C. 632(a)).
    (i) Authorization of Appropriations.--There is authorized to be 
appropriated to the Administrator of the Small Business Administration 
$10,000,000,000 to carry out the program, including the hiring of 
necessary personnel.
    (j) Termination.--The program shall terminate on the date that is 2 
years after the date of enactment of this Act.
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