I 112th CONGRESS 2d Session H. R. 3976 IN THE HOUSE OF REPRESENTATIVES February 8, 2012 Ms. Velázquez introduced the following bill; which was referred to the Committee on Ways and Means, and in addition to the Committees on Small Business, Financial Services, and Foreign Affairs, 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 provide exporting assistance to small business concerns, and for other purposes.

1.

Short title

This Act may be cited as the Enhancing Exports Through Entrepreneurship Act of 2012.

2.

Small business tax credit for costs associated with expanding export markets

(a)

In general

Subpart D of part IV of subchapter A of chapter 1 of the Internal Revenue Code of 1986 is amended by adding at the end the following new section:

45S.

Credit for small business costs of expanding export markets

(a)

In general

For purposes of section 38, in the case of a qualified small business, the small business export expansion credit for any taxable year is an amount equal to 25 percent of the export expansion expenses of the taxpayer paid or incurred during the taxable year. (b)

Export expansion expenses

For purposes of this section, the term export expansion expenses means amounts paid or incurred by the taxpayer for the purpose of increasing the amount of goods sold for consumption, or services provided, outside the United States. Such term shall not include the cost of goods sold (and similar amounts with respect to services provided). (c)

Qualified small business

For purposes of this section, the term qualified small business means a small business concern within the meaning of section 3 of the Small Business Act.

. (b)

Credit To be part of general business credit

(1)

In general

Subsection (b) of section 38 of such Code is amended by striking plus at the end of paragraph (35), by striking the period at the end of paragraph (36) and inserting , plus, and by adding at the end the following new paragraph: (37)in the case of a qualified small business (as defined in section 45S(c)), the small business export expansion credit determined under section 45S(a). . (2)

Credit allowable against alternative minimum tax

Subparagraph (B) of section 38(c)(4) of such Code is amended by redesignating clauses (vii) through (ix) as clauses (viii) through (x), respectively, and by inserting after clause (vi) the following new clause: (vii)the credit determined under section 45S, . (c)

Clerical 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. Credit for small business costs of expanding export markets. . (d)

Effective date

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

3.

Availability of essential trade information

Section 22(c)(7) of the Small Business Act (15 U.S.C. 649(c)(7)) is amended— (1)in subparagraph (C) by striking and at the end; (2)in subparagraph (D) by inserting and after the semicolon; and (3)by adding at the end the following: (E)compiling in a format that is accessible and able to be understood by the owners of small business concerns, making available to appropriate partner entities (including small business development centers, women’s business centers, chapters of the Service Corps of Retired Executives, Veterans Business Outreach Centers, and Export Assistance Centers), and updating each year a document that contains— (i)the tariff schedules of all foreign countries (organized by industry sector); and (ii)for each of the 50 foreign countries to which the highest total value of United States goods and services are exported (as determined by the Associate Administrator), information on the demand for goods and services in the country, including an identification of the 10 industry sectors with respect to which the highest total value of United States goods and services are exported to the country (as determined by the Associate Administrator); .

4.

Foreign customer matchmaking

Section 22(c) of the Small Business Act (15 U.S.C. 649(c)) is amended— (1)in paragraph (12) by striking and at the end; (2)in paragraph (13) by striking the period and inserting ; and; and (3)by adding at the end the following: (14)in coordination with the Department of Commerce and other appropriate Federal departments and agencies, identify and advertise to small business concerns programs and services that facilitate the matching of foreign customers to small business concerns, including— (A)any program administered by a Federal department or agency that assists small business concerns to identify and meet with foreign buyers, partners, or sales representatives; and (B)any service of a Federal department or agency that assists small business concerns to participate in personalized business matchmaking, trade missions, reverse trade missions, or trade shows. .

5.

Loans to small businesses by the export-import bank

Section 2(b)(1)(E)(v) of the Export-Import Bank Act of 1945 (12 U.S.C. 635(b)(1)(E)(v)) is amended— (1)in the first sentence, by inserting , and from the aggregate loan authority available to it, an amount to so finance such exports which shall be not less than 30 percent of such authority for each fiscal year before the period; and (2)by adding at the end the following new sentence: The Bank shall charge interest and fees to the extent necessary to fully offset the costs of making loans under this clause..

6.

Increase in small business investment by Overseas Private Investment Corporation

(a)

In general

Title IV of chapter 2 of part I of the Foreign Assistance Act of 1961 is amended— (1)in section 231(e)(2) (22 U.S.C. 2191(e)(2)), by striking 30 percent and inserting 40 percent; (2)in section 233(b) (22 U.S.C. 2193(b)), by striking two of the eight and inserting three of the eight; and (3)in section 240(a) (22 U.S.C. 2200(a)), by striking 50 percent and inserting 60 percent. (b)

Effective date

The amendments made by subsection (a) take effect on the date of the enactment of this Act and apply with respect each fiscal year beginning on or after such date of enactment.

7.

Limitations on duties that apply to certain goods and services imported into the United States for use by small business concerns

(a)

Limitation on HTS duties

Notwithstanding any other provision of law, the rate of duty under the HTS that applies to a covered good or covered service that is imported into the United States shall not exceed the lesser of— (1)the rate of duty that applies to the good or service on the date on which the good or service is purchased by a small business concern; or (2)the rate of duty that applies to the good or service at the time of entry. (b)

Limitation on additional duties

(1)

In general

Notwithstanding any other provision of law, no additional duty described in paragraph (2) shall apply with respect to a covered good or covered service that is imported into the United States. (2)

Additional duties

An additional duty described in this paragraph is— (A)a countervailing duty imposed under subtitle A of title VII of the Tariff Act of 1930 (19 U.S.C. 1671 et seq.); (B)an antidumping duty imposed under subtitle B of title VII of the Tariff Act of 1930 (19 U.S.C. 1673 et seq.); and (C)any other additional duty imposed under any other provision of law. (c)

Documentation

The Secretary shall require the importer of a good or service who, for purposes of this section, claims the good or service to be a covered good or covered service, as the case may be, to submit such documentation or other information to the Secretary as may be necessary to verify the accuracy of such claims. (d)

Regulations

The Secretary is authorized to prescribe such rules and regulations as are necessary to carry out the provisions of this section. (e)

Definitions

In this section: (1)

Covered good

The term covered good or good means a good that is purchased by a small business concern for use in its regular business operations. (2)

Covered service

The term covered service or service means a service that is purchased by a small business concern for use in its regular business operations. (3)

HTS

The term HTS means the Harmonized Tariff Schedule of the United States. (4)

Importer

The term importer means— (A)as such term relates to imports of goods, one of the parties eligible to file the required customs entry documentation or information pursuant to section 484(a)(2)(B) of the Tariff Act of 1930 (19 U.S.C. 1484(a)(2)(B)); and (B)as such term relates to imports of services, the importer of the service as defined by the Secretary in rules and regulations promulgated by the Secretary. (5)

Small business concern

The term small business concern has the meaning given such term for purposes of the Small Business Act (15 U.S.C. 631 et seq.). (6)

Secretary

The term Secretary means the Secretary of Homeland Security. (7)

Time of entry

The term time of entry means— (A)as relates to imports of covered goods, the time generally specified in section 484(a)(2)(A) of the Tariff Act of 1930 (19 U.S.C. 1484(a)(2)(A)) and prescribed in regulations (19 C.F.R. 141.68); and (B)as relates to imports of services, the time specified by the Secretary in rules and regulations promulgated by the Secretary. (f)

Effective date

This section takes effect on the date of the enactment of this Act and applies to covered goods and covered services entered, or withdrawn from warehouse for consumption, on or after the 15th day after the date of the enactment of this Act.