I 111th CONGRESS 1st Session H. R. 533 IN THE HOUSE OF REPRESENTATIVES January 14, 2009 Mr. Neugebauer introduced the following bill; which was referred to the Committee on Ways and Means A BILL To make full estate tax repeal, small business expensing, and SECA tax deduction for health insurance permanent.

1.

Short title

This Act may be cited as the Opportunity for Family Farms and Small Businesses Act of 2009.

2.

Estate tax repeal made permanent

Section 901 of the Economic Growth and Tax Relief Reconciliation Act of 2001 shall not apply to title V of such Act.

3.

Increased expensing for small business made permanent

(a)

In general

Paragraph (1) of section 179(b) of the Internal Revenue Code of 1986 (relating to dollar limitation) is amended by striking $25,000 ($125,000 in the case of taxable years beginning after 2006 and before 2011) and inserting $200,000. (b)

Phaseout of limitation only by 50 percent of excess over $800,000

Paragraph (2) of section 179(b) of such Code (relating to reduction in limitation) is amended to read as follows: (2)

Reduction in limitation

The limitation under paragraph (1) for any taxable year shall be reduced (but not below zero) by one-half of the amount by which the cost of section 179 property placed in service during such taxable year exceeds $800,000. . (c)

Rebasing of inflation adjustments

Section 179(b)(5)(A) of such Code (relating to inflation adjustments) is amended— (1)in the matter preceding clause (i) by striking 2007 and before 2011, the $125,000 and $500,000 and inserting 2009, the $200,000 and $800,000, and (2)in clause (ii) by striking calendar year 2006 and inserting calendar year 2008. (d)

Revocation of election made permanent

Section 179(c)(2) of such Code (relating to election irrevocable) is amended by striking and before 2011. (e)

Off-the-shelf computer software

Section 179(d)(1)(A)(ii) of such Code (relating to section 179 property) is amended by striking and before 2011. (f)

Effective date

The amendments made by this section shall apply to property placed in service in taxable years beginning after December 31, 2008.

4.

SECA tax deduction for health insurance costs

(a)

In general

Subsection (l) of section 162 of the Internal Revenue Code of 1986 (relating to special rules for health insurance costs of self-employed individuals) is amended by striking paragraph (4) and by redesignating paragraph (5) as paragraph (4). (b)

Effective date

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