1.
(a)This Act may be cited
as the Small Business Jobs Tax
Extenders Act of 2011
.
(b)Except as otherwise expressly provided, whenever in
this Act an amendment or repeal is expressed in terms of an amendment to, or
repeal of, a section or other provision, the reference shall be considered to
be made to a section or other provision of the Internal Revenue Code of
1986.
(c)The table of contents of this Act is as follows:
Sec. 1. Short title;
etc.
Sec. 2. Findings.
TITLE I—Extension of small business tax relief
Sec. 101. Extension of temporary exclusion of 100 percent of
gain on certain small business stock.
Sec. 102. Extension of 5-year carryback of general business
credits of eligible small businesses.
Sec. 103. Extension of alternative minimum tax rules for
general business credits of eligible small businesses.
Sec. 104. Extension of temporary reduction in recognition
period for built-in gains tax.
Sec. 105. Extension of increased expensing limitations and
treatment of certain real property as section 179 property.
Sec. 106. Extension of bonus depreciation.
Sec. 107. Extension of special rule for long-term contract
accounting.
Sec. 108. Extension of increased amount allowed as a deduction
for start-up expenditures.
Sec. 109. Extension of allowance of deduction for health
insurance in computing self-employment taxes.
TITLE II—Offsetting provisions
Sec. 201. Expansion of affordability exception to individual
mandate.
2.Congress makes the following
findings:
(1)A vibrant and
growing small business sector is critical to the recovery of the economy of the
United States.
(2)Small businesses
represent 99.7 percent of all employer firms and generate approximately
two-thirds of net new jobs.
(3)Broadening the
tax base and lowering statutory rates through comprehensive tax reform is
preferable to short term tax rate extensions.
(4)There is no
consensus on Congressional passage and implementation of such reform at this
time; it is therefore critical that tax relief for small businesses promulgated
in the Small Business Jobs Act of 2010 be extended.
<enum>I</enum><header>Extension of
small business tax relief</header>
<section id="idE5F38DA335E447C3B656FE4E4B0D0E89"><enum>101.</enum><header>Extension of
temporary exclusion of 100 percent of gain on certain small business
stock</header>
<subsection id="id9B420680F9DF4B428BFEBB07F57AEA41"><enum>(a)</enum><header>In
general</header><text>Paragraph (4) of section 1202(a) is amended—</text>
<paragraph id="id84AB2A372F204883B3D8F3EA6765CA5A"><enum>(1)</enum><text>by striking
<quote>January 1, 2012</quote> and inserting <quote>January 1, 2013</quote>,
and</text>
</paragraph><paragraph id="id48E8A7BB257241C996C2E1AB068FE0BC"><enum>(2)</enum><text>by striking
<quote><header-in-text level="paragraph" style="OLC">and</header-in-text>
2011</quote> and inserting <quote>2011,
<header-in-text level="paragraph" style="OLC">and</header-in-text> 2012</quote>
in the heading thereof.</text>
</paragraph></subsection><subsection id="idBA123E97794741FD979DFD934682FD37"><enum>(b)</enum><header>Effective
date</header><text>The amendments made by this section shall apply to stock
acquired after December 31, 2011.</text>
</subsection></section><section id="id4FE1772840384B40BEF61829C8FDF5BD"><enum>102.</enum><header>Extension of
5-year carryback of general business credits of eligible small
businesses</header>
<subsection id="id419A72C5FCA34F7E85894D485CDB0B25"><enum>(a)</enum><header>In
general</header><text>Subparagraph (A) of section 39(a)(4) is amended by
<quote>or 2011</quote> after <quote>2010</quote>.</text>
</subsection><subsection id="idA59BF8A4E309448D8E234795EA3D7B4F"><enum>(b)</enum><header>Effective
date</header><text>The amendment made by this section shall apply to credits
determined in taxable years beginning after December 31, 2010.</text>
</subsection></section><section id="id7C1364039C4B4E649BFD469118137D9A"><enum>103.</enum><header>Extension of
alternative minimum tax rules for general business credits of eligible small
businesses</header>
<subsection id="idDC0557B2C2A943B9A0772559B04AF826"><enum>(a)</enum><header>In
general</header><text>Subparagraph (A) of section 38(c)(5) is amended by
<quote>or 2011</quote> after <quote>2010</quote>.</text>
</subsection><subsection id="id5DBE177003D64E5EAB50E97494364977"><enum>(b)</enum><header>Effective
date</header><text>The amendments made by this section shall apply to credits
determined in taxable years beginning after December 31, 2010, and to
carrybacks of such credits.</text>
</subsection></section><section id="id15CF806326D9404AABE51FB5DED51C08"><enum>104.</enum><header>Extension of
temporary reduction in recognition period for built-in gains tax</header>
<subsection id="ID5016cbf480ae4b74984a9844cfd85f51"><enum>(a)</enum><header>In
general</header><text>Clause (ii) of section 1374(d)(7)(B) is amended by
inserting <quote>or 2012,</quote> after <quote>2011</quote>.</text>
</subsection><subsection id="idB0F10EDC9F1E411080330DB35D8BFA3E"><enum>(b)</enum><header>Conforming
amendment</header><text>The heading for section 1372(d)(7)(B) is amended by
striking <quote><header-in-text level="subparagraph" style="OLC">and
2011</header-in-text></quote> and inserting <quote><header-in-text level="subparagraph" style="OLC">2011, and
2012</header-in-text></quote>.</text>
</subsection><subsection id="idE281961B12D741049FEC8944ED646AF8"><enum>(c)</enum><header>Effective
date</header><text>The amendments made by this section shall apply to taxable
years beginning after December 31, 2011.</text>
</subsection></section><section id="idC3D5BA34547F435BBB7BC49F43B386AB"><enum>105.</enum><header>Extension of
increased expensing limitations and treatment of certain real property as
section 179 property</header>
<subsection id="id1984E2F68E3049C8A1341FE82A907301"><enum>(a)</enum><header>In
general</header><text>Section 179(b) is amended—</text>
<paragraph id="id68AAEDB25C2A4A66B43EF89DF58784D4"><enum>(1)</enum><text>by striking
<quote>2010 or 2011</quote> each place it appears in paragraph (1)(B) and
(2)(B) and inserting <quote>2010, 2011, or 2012</quote>,</text>
</paragraph><paragraph id="id63E39CEFF14A457893A0DA6456B9740C"><enum>(2)</enum><text>by striking
<quote>2012</quote> each place it appears in paragraph (1)(C) and (2)(C) and
inserting <quote>2013</quote>, and</text>
</paragraph><paragraph id="id2A03030008D44D2EB07DC6ECFF917CAC"><enum>(3)</enum><text>by striking
<quote>2012</quote> each place it appears in paragraph (1)(D) and (2)(D) and
inserting <quote>2013</quote>.</text>
</paragraph></subsection><subsection id="idF0888D06A88D4B94A6DA2CFABB40265D"><enum>(b)</enum><header>Inflation
adjustment</header><text>Subparagraph (A) of section 179(b)(6) is amended by
striking <quote>2012</quote> and inserting <quote>2013</quote>.</text>
</subsection><subsection id="idA2923FC914214062B3152258D42AEE6C"><enum>(c)</enum><header>Computer
software</header><text>Section 179(d)(2)(A)(ii) is amended by striking
<quote>2013</quote> and inserting <quote>2014</quote>.</text>
</subsection><subsection id="idA4061141549C49C595F0EE0CC02F7B20"><enum>(d)</enum><header>Election</header><text>Section
179(c)(2) is amended by striking <quote>2013</quote> and inserting
<quote>2014</quote>.</text>
</subsection><subsection id="id28964FBB89BE446C841D632616D4143A"><enum>(e)</enum><header>Special rules
for treatment of qualified real property</header><text>Section 179(f)(1) is
amended by striking <quote>2010 or 2011</quote> and inserting <quote>2010,
2011, or 2012</quote>.</text>
</subsection><subsection id="id2C78E3463276463C9353A992AE3A9150"><enum>(f)</enum><header>Effective
date</header><text>The amendments made by this section shall apply to taxable
years beginning after December 31, 2011.</text>
</subsection></section><section id="idE376F2AD6A7E421CA93729AE1E9E5914"><enum>106.</enum><header>Extension of
bonus depreciation</header>
<subsection id="IDdb4cef95acde487893f6b4cdf741c1c3"><enum>(a)</enum><header>In
general</header><text>Paragraph (2) of section 168(k) is amended—</text>
<paragraph id="ID8d35b8d57e1c4a2eb90c75037be37cc0"><enum>(1)</enum><text>by striking
<quote>January 1, 2014</quote> in subparagraph (A)(iv) and inserting
<quote>January 1, 2015</quote>, and</text>
</paragraph><paragraph id="ID4bf2681ec5bd46279fe3dc0d961cd8b3"><enum>(2)</enum><text>by striking
<quote>January 1, 2013</quote> each place it appears and inserting
<quote>January 1, 2014</quote>.</text>
</paragraph></subsection><subsection id="id5C3B9E0CE8374BD0B4EE0AD19F2AFDF8"><enum>(b)</enum><header>100 percent
expensing</header><text>Paragraph (5) of section 168(k) is amended—</text>
<paragraph id="idE65308A88E044CFA8FC2066537273AE7"><enum>(1)</enum><text>by striking
<quote>January 1, 2013</quote> and inserting <quote>January 1, 2014</quote>,
and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id2C5F1DF8688040C0BEB97D20ED56B270"><enum>(2)</enum><text>by striking
<quote>January 1, 2012</quote> each place it appears and inserting
<quote>January 1, 2013</quote>.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="id3CBCC9B44C584E318C07198537EB185D"><enum>(c)</enum><header>Extension of
election To accelerate the AMT credit in lieu of bonus depreciation</header>
<paragraph commented="no" display-inline="no-display-inline" id="id5423C04377EB4EAC90FBFCB1B2F66EEF"><enum>(1)</enum><header>In
general</header><text>Subclause (II) of section 168(k)(4)(D)(iii) is amended by
striking <quote>2013</quote> and inserting <quote>2014</quote>.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="idEB9CEFB7C781421E8FD878DE93462478"><enum>(2)</enum><header>Round 3
extension property</header><text>Paragraph (4) of section 168(k) is amended by
adding at the end the following new subparagraph:</text>
<quoted-block display-inline="no-display-inline" id="idACA78C7F7B2B424D823F6F5E196AECAB" style="OLC">
<subparagraph commented="no" id="IDf5ee84d00911421daadfa5b699b1739d"><enum>(J)</enum><header>Special rules
for round 3 extension property</header>
<clause commented="no" id="id91B0BAEA2C834570A41D24CC43A875C9"><enum>(i)</enum><header>In
general</header><text>In the case of round 3 extension property, this paragraph
shall be applied without regard to—</text>
<subclause commented="no" id="id977170C9914046BABB26F8F0490820DF"><enum>(I)</enum><text>the limitation
described in subparagraph (B)(i) thereof, and</text>
</subclause><subclause commented="no" id="idBEA5E77536344E6C8B03EC43783817D0"><enum>(II)</enum><text>the business
credit increase amount under subparagraph (E)(iii) thereof.</text>
</subclause></clause><clause commented="no" id="IDd0a6c434381a463fb780c42495da4ddf"><enum>(ii)</enum><header>Taxpayers
previously electing acceleration</header><text>In the case of a taxpayer who
made the election under subparagraph (A) for its first taxable year ending
after March 31, 2008, a taxpayer who made the election under subparagraph
(H)(ii) for its first taxable year ending after December 31, 2008, or a
taxpayer who made the election under subparagraph (I)(iii) for its first
taxable year ending after December 31, 2010—</text>
<subclause commented="no" id="IDee751ae340944bed9a610eb258263331"><enum>(I)</enum><text>the taxpayer may
elect not to have this paragraph apply to round 3 extension property,
but</text>
</subclause><subclause commented="no" id="ID4e6a528e48ba4f509673c4ea4c7ff605"><enum>(II)</enum><text>if the taxpayer
does not make the election under subclause (I), in applying this paragraph to
the taxpayer the bonus depreciation amount, maximum amount, and maximum
increase amount shall be computed and applied to eligible qualified property
which is round 3 extension property.</text>
</subclause><continuation-text commented="no" continuation-text-level="clause">The amounts described in subclause (II)
shall be computed separately from any amounts computed with respect to eligible
qualified property which is not round 2 extension property.</continuation-text></clause><clause commented="no" id="ID650385ea59214d458c3ba2755a4929f9"><enum>(iii)</enum><header>Taxpayers not
previously electing acceleration</header><text>In the case of a taxpayer who
neither made the election under subparagraph (A) for its first taxable year
ending after March 31, 2008, nor made the election under subparagraph (H)(ii)
for its first taxable year ending after December 31, 2008, nor made the
election under subparagraph (I)(iii) for its first taxable year ending after
December 31, 2010—</text>
<subclause commented="no" id="IDda2cdfe8c5d0459ba736b2db382fa159"><enum>(I)</enum><text>the taxpayer may
elect to have this paragraph apply to its first taxable year ending after
December 31, 2011, and each subsequent taxable year, and</text>
</subclause><subclause commented="no" id="ID04fedbdcdb094fb0bd0217a6b8966265"><enum>(II)</enum><text>if the taxpayer
makes the election under subclause (I), this paragraph shall only apply to
eligible qualified property which is round 3 extension property.</text>
</subclause></clause><clause commented="no" id="ID9a8286c81b1245e5adacf39e363c52b2"><enum>(iv)</enum><header>Round 3
extension property</header><text>For purposes of this subparagraph, the term
<term>round 3 extension property</term> means property which is eligible
qualified property solely by reason of the extension of the application of the
special allowance under paragraph (1) pursuant to the amendments made by
section 7(a) of the <short-title>Small Business Jobs Tax
Extenders Act of 2011</short-title> (and the application of such extension to
this paragraph pursuant to the amendment made by section 7(c)(1) of such
Act).</text>
</clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="ID61ac8a11b82b418ba9e09e5ac34f8e76"><enum>(d)</enum><header>Conforming
amendments</header>
<paragraph id="ID81131a19f61a4c088066696aaecb840a"><enum>(1)</enum><text>The heading for
subsection (k) of section 168 is amended by striking <quote><header-in-text level="subsection" style="OLC">January 1, 2013</header-in-text></quote> and
inserting <quote><header-in-text level="subsection" style="OLC">January 1,
2014</header-in-text></quote>.</text>
</paragraph><paragraph id="IDcef7a073787e4edfa1dde1549030a307"><enum>(2)</enum><text>The heading for
clause (ii) of section 168(k)(2)(B) is amended by striking
<quote><header-in-text level="clause" style="OLC">pre-January 1,
2013</header-in-text></quote> and inserting <quote><header-in-text level="clause" style="OLC">pre-January 1, 2014</header-in-text></quote>.</text>
</paragraph><paragraph commented="no" id="ID45758bc8c570427dbc7a0f0b36142a1f"><enum>(3)</enum><text>Paragraph (5) of
section 168(l) is amended—</text>
<subparagraph commented="no" id="ID801cafc11dc24ed5ad692fad2d3ad6f8"><enum>(A)</enum><text>by striking
<quote>and</quote> at the end of subparagraph (A),</text>
</subparagraph><subparagraph commented="no" id="ID6e4feb8bef17444590133d4f3e46170d"><enum>(B)</enum><text>by redesignating
subparagraph (C) as subparagraph (B), and</text>
</subparagraph><subparagraph commented="no" id="idC833A0C5E76F4E5C85A11E0B78076F1C"><enum>(C)</enum><text>by inserting
after subparagraph (A) the following new subparagraph:</text>
<quoted-block display-inline="no-display-inline" id="idDF19CBDCA2FA47BC9BC869A5CC7AF3CF" style="OLC">
<subparagraph commented="no" id="id0DD781B98C674DF19B026BEC7589CF2F"><enum>(B)</enum><text>by substituting
<quote>January 1, 2013</quote> for <quote>January 1, 2014</quote> in clause (i)
thereof,
and</text>
</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subparagraph></paragraph><paragraph commented="no" id="ID6951c62508b544f18807749b4c57ede6"><enum>(4)</enum><text>Subparagraph (C)
of section 168(n)(2) is amended by striking <quote>January 1, 2013</quote> and
inserting <quote>January 1, 2014</quote>.</text>
</paragraph><paragraph commented="no" id="ID28cafbe882954df5b56e5e46c34852f5"><enum>(5)</enum><text>Subparagraph (D)
of section 1400L(b)(2) is amended by striking <quote>January 1, 2013</quote>
and inserting <quote>January 1, 2014</quote>.</text>
</paragraph><paragraph commented="no" id="ID71275f25922a4878aaf4fa49de8c46fb"><enum>(6)</enum><text>Subparagraph (B)
of section 1400N(d)(3) is amended by striking <quote>January 1, 2013</quote>
and inserting <quote>January 1, 2014</quote>.</text>
</paragraph></subsection><subsection id="ID8a4597b12c904ccc87b965b30dd322e3"><enum>(e)</enum><header>Effective
dates</header><text>The amendments made by this section shall apply to property
placed in service after December 31, 2011, in taxable years ending after such
date.</text>
</subsection></section><section id="id5F69161F7AFE4D1EBC633AD53EA38D8F"><enum>107.</enum><header>Extension of
special rule for long-term contract accounting</header>
<subsection id="idFE72EBF068B844488B46C8D9905D1CA6"><enum>(a)</enum><header>In
general</header><text>Clause (ii) of section 460(c)(6)(B) is amended by
striking <quote>January 1, 2011 (January 1, 2012</quote> and inserting
<quote>January 1, 2012 (January 1, 2013</quote>.</text>
</subsection><subsection id="id34CD93B44916418BA05A9A3BA4772C08"><enum>(b)</enum><header>Effective
date</header><text>The amendment made by this section shall apply to property
placed in service after December 31, 2010.</text>
</subsection></section><section id="idEBB665E090EF45B8A156672573075009"><enum>108.</enum><header>Extension of
increased amount allowed as a deduction for start-up expenditures</header>
<subsection id="id655DD0C235DC4ECEA0CA04EFF0CBD10E"><enum>(a)</enum><header>In
general</header><text>Paragraph (3) of section 195(b) is amended—</text>
<paragraph id="id58BE1768DF394237840A5EF42B733D0F"><enum>(1)</enum><text>by inserting
<quote>or 2011</quote> after <quote>2010</quote>, and</text>
</paragraph><paragraph id="id2DC86F0A27D544F89679A90F40FFC839"><enum>(2)</enum><text>by inserting
<quote><header-in-text level="paragraph" style="OLC">and
2011</header-in-text></quote> in the heading thereof.</text>
</paragraph></subsection><subsection id="id57F271F761E4429EA9D9A2E877FFD683"><enum>(b)</enum><header>Effective
date</header><text>The amendments made by this section shall apply to amounts
paid or incurred in taxable years beginning after December 31, 2010.</text>
</subsection></section><section id="idC11A0F7691C74FAB99D472367D84BBEB"><enum>109.</enum><header>Extension of
allowance of deduction for health insurance in computing self-employment
taxes</header>
<subsection id="id9F7E8487F9DD4536AEF94B46818CF0F1"><enum>(a)</enum><header>In
general</header><text>Paragraph (4) of section 162(l) is amended by striking
<quote>December 31, 2010</quote> and inserting <quote>December 31,
2011</quote>.</text>
</subsection><subsection id="id47F40A8172E34BA29E8E4A1A3F1211A0"><enum>(b)</enum><header>Effective
date</header><text>The amendment made by this section shall apply to taxable
years beginning after December 31, 2010.</text>
</subsection></section><enum>II</enum><header>Offsetting
provisions</header>
<section id="ID9de855b8413542b1a0d3c961fd71f6c9"><enum>201.</enum><header>Expansion of
affordability exception to individual mandate</header><text display-inline="no-display-inline">Section 5000A(e)(1) is amended by striking
<quote>8 percent</quote> each place it appears and inserting <quote>5
percent</quote>.</text>
</section>