I 111th CONGRESS 2d Session H. R. 5277 IN THE HOUSE OF REPRESENTATIVES May 11, 2010 Mr. Wilson of Ohio introduced the following bill; which was referred to the Committee on Ways and Means A BILL To amend the Internal Revenue Code of 1986 to allow a business credit for small business loans.

1.

Short title

This Act may be cited as the Small Business Lending Incentive Program Act of 2010.

2.

Credit for small business loans

(a)

In general

Subpart D of part IV of subchapter A of chapter 1 of the Internal Revenue Code of 1986 (relating to business related credits) is amended by adding at the end the following new section:

45S.

Small business loans

(a)

General rule

For purposes of section 38, the small business loan credit for any taxable year is an amount equal to 1 percent of aggregate qualified loans made during the taxable year. (b)

Limitation

The number of qualified loans taken into account under subsection (a) for a taxable year may not exceed 20. (c)

Definitions

For purposes of this section— (1)

Qualified loan

The term qualified loan means a loan made by an eligible bank to a small business concern, the principal amount of which does not exceed $500,000. (2)

Small business concern

The term small business concern has the same meaning as such term has under section 3 of the Small Business Act (15 U.S.C. 632). (3)

Eligible bank

The term eligible bank means a bank the total assets of which at the close of the preceding taxable year do not exceed $10,000,000,000. (4)

Bank

The term bank means— (A)a bank (as defined in section 581), (B)a bank holding company (as defined in section 2(a) of the Bank Holding Company Act of 1956 (12 U.S.C. 1841(a))), (C)a savings association (as defined in section 3(b) of the Federal Deposit Insurance Act (12 U.S.C. 1813)), and (D)a savings and loan holding company (as defined in section 10(a)(1)(D) of the Home Owners Loan Act). (d)

Termination

This section shall not apply to loans made after the first 2 taxable years beginning on the date of the enactment of this section.

. (b)

Credit allowed as part of general business credit

Section 38(b) of such Code (defining current year business credit) is amended by striking plus at the end of paragraph (34), by striking the period at the end of paragraph (35) and inserting , plus, and by adding at the end the following new paragraph: (37)the small business loan credit determined under section 45S. . (c)

Conforming amendment

The table of sections for subpart D of part IV of subchapter A of chapter 1 of such Code is amended by adding at the end the following new item: Sec. 45S. Small business loans. . (d)

Effective date

The amendments made by this section shall apply to taxable years beginning after the date of enactment of this Act.