[Congressional Bills 112th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3571 Introduced in House (IH)]

112th CONGRESS
  1st Session
                                H. R. 3571

  To direct the Commissioner of Internal Revenue to establish a self-
    employment tax initiative grant program, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            December 6, 2011

   Ms. Chu introduced the following bill; which was referred to the 
   Committee on Ways and Means, and in addition to the Committee on 
 Financial Services, 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 direct the Commissioner of Internal Revenue to establish a self-
    employment tax initiative grant program, 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.

    This Act may be cited as the ``Entrepreneur Startup Growth Act of 
2011''.

SEC. 2. SELF-EMPLOYMENT TAX INITIATIVE GRANT PROGRAM.

    (a) Establishment.--Not later than 90 days after the date of 
enactment of this Act, the Commissioner of Internal Revenue, in 
consultation with the Administrator of the Small Business 
Administration, shall establish a self-employment tax initiative grant 
program (in this section referred to as the ``program'') to provide to 
covered individuals affordable tax preparation and business development 
assistance.
    (b) Grant Authority and Eligible Entities.--Under the program, the 
Commissioner may make a grant to the following:
            (1) A community-based organization.
            (2) A microlender.
            (3) A nonprofit organization.
            (4) An institution of higher education.
            (5) A local government.
            (6) A consortium of entities described in any of paragraphs 
        (1) through (5).
    (c) Grant Uses.--A grant made under the program shall be used for 
the following:
            (1) Providing affordable tax preparation assistance to a 
        covered individual.
            (2) Providing business development assistance to a covered 
        individual, including individual counseling, classroom 
        training, or other activities designed to assist a covered 
        individual to improve the profitability, efficiency, or 
        readiness for financing of the individual's business.
            (3) Conducting culturally and linguistically appropriate 
        outreach to underserved communities in the area in which 
        assistance described in paragraph (1) or (2) is provided.
    (d) Applications for Grants.--To be eligible for a grant under the 
program an entity specified in subsection (b) shall submit to the 
Commissioner an application at such time, in such form, and containing 
such information as the Commissioner may require, but which, at a 
minimum, shall--
            (1) include the plan of the entity to provide assistance 
        and outreach described in subsection (c) throughout each year; 
        and
            (2) demonstrate that the entity has experience providing 
        the assistance described in paragraph (1) and the assistance 
        described in paragraph (2) of subsection (c).
    (e) Grant Amount.--A grant made under the program may not be in an 
amount that exceeds $75,000.
    (f) GAO Study and Report.--
            (1) Study.--The Comptroller General of the United States 
        shall conduct a study on the program, including program 
        outcomes.
            (2) Report.--Not later than 3 years after the date on which 
        the program is established, the Comptroller General shall 
        submit to Congress a report on the results of the study 
        conducted under paragraph (1), which shall include the 
        following:
                    (A) An analysis of the impact of the program on 
                covered individuals and the businesses of such 
                individuals.
                    (B) An identification of the best practices of 
                grant recipients with respect to activities carried out 
                with grant funds.
                    (C) Recommendations for improving the program.
    (g) Authorization of Appropriations.--
            (1) In general.--There is authorized to be appropriated to 
        carry out the program $1,500,000 for each of fiscal years 2012 
        through 2016.
            (2) Administrative costs.--Of the funds made available to 
        carry out the program each fiscal year, the Commissioner may 
        use not more than 10 percent for the administrative costs of 
        the program.
    (h) Definitions.--In this section, the following definitions apply:
            (1) Covered individual.--The term ``covered individual'' 
        means, with respect to any taxable year, an individual who--
                    (A) is engaged in an active trade or business as a 
                sole proprietor during such taxable year;
                    (B) is required to report income or loss on 
                Schedule C to Form 1040 for such taxable year; and
                    (C) has modified adjusted gross income of $50,000 
                or less for the preceding taxable year.
            (2) Institution of higher education.--The term 
        ``institution of higher education'' has the meaning given that 
        term in section 102 of the Higher Education Act of 1965 (20 
        U.S.C. 1002).
            (3) Microlender.--The term ``microlender'' means a private 
        organization that provides--
                    (A) loans of $50,000 or less to entrepreneurs, 
                small business owners, and nonprofit child care 
                providers; and
                    (B) marketing, management, and technical assistance 
                to loan recipients and potential loan recipients.
            (4) Modified adjusted gross income.--The term ``modified 
        adjusted gross income'' means the adjusted gross income (as 
        defined in section 62 of the Internal Revenue Code of 1986) of 
        the taxpayer for a taxable year increased by any amount 
        excluded from gross income under section 911, 931, or 933 of 
        such Code.
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