1.Short
title; table of contents
(a)This Act may be cited
as the American Growth, Recovery,
Empowerment, and Entrepreneurship Act
or the
AGREE
Act
.
(b)The table of contents for this Act is as follows:
Sec. 1. Short title; table of
contents.
TITLE I—Extending tax relief for small businesses
Sec. 101. Extension of bonus depreciation; temporary 100
percent expensing for certain business assets.
Sec. 102. Extension of increased expensing limitations and
treatment of certain real property as section 179 property.
Sec. 103. Temporary exclusion of 100 percent of gain on certain
small business stock.
TITLE II—Encouraging cutting-edge research and
innovation
Sec. 201. Extension of research credit; alternative simplified
research credit increased and made permanent.
Sec. 202. Enhanced research credit for domestic
manufacturers.
TITLE III—Providing common-sense tax incentives for
veterans
Sec. 301. Veterans franchise fee credit.
Sec. 302. Publication of information by Department of Veterans
Affairs and Small Business Administration.
TITLE IV—Regulatory relief for small companies
Sec. 401. Exemption from the internal control reporting and
assessment requirements.
TITLE V—Reducing barriers to high-skilled legal
immigration
Sec. 501. Numerical limitation to any
single foreign state.
TITLE VI—Protecting American business against illegal
counterfeiting
Sec. 601. Preventing the importation of counterfeit products
and infringing devices.
<enum>I</enum><header>Extending tax
relief for small businesses </header>
<section id="HD4C6473454E141CE9FC19968FD1DD8F1"><enum>101.</enum><header>Extension of
bonus depreciation; temporary 100 percent expensing for certain business
assets</header>
<subsection id="HF3803E84E4B348F2A0109C2CA9BB4A56"><enum>(a)</enum><header>In
general</header><text>Paragraph (2) of section 168(k) of the Internal Revenue
Code of 1986 is amended—</text>
<paragraph id="H3435DA13F8454B42AE875AC68DA92B01"><enum>(1)</enum><text>by striking
<quote>January 1, 2014</quote> in subparagraph (A)(iv) and inserting
<quote>January 1, 2016</quote>, and</text>
</paragraph><paragraph id="H4241D33DA13042A9BF7D60235EC40602"><enum>(2)</enum><text>by striking
<quote>January 1, 2013</quote> each place it appears and inserting
<quote>January 1, 2015</quote>.</text>
</paragraph></subsection><subsection id="HB3678626B68B4723A1EB745D86B48463"><enum>(b)</enum><header>Temporary 100
percent expensing</header><text>Paragraph (5) of section 168(k) of the Internal
Revenue Code of 1986 is amended—</text>
<paragraph id="id4EFFA479B12544E9956AA36FC3501755"><enum>(1)</enum><text>by striking
<quote>2013</quote> and inserting <quote>2016</quote>, and</text>
</paragraph><paragraph id="idD86A5319CDBD4731A995F291EAD92F0D"><enum>(2)</enum><text>by striking
<quote>2012</quote> each place it appears in the text and heading and inserting
<quote>2015</quote>.</text>
</paragraph></subsection><subsection commented="no" id="H1B65B12DE2404CCD9AE2F8803F54D197"><enum>(c)</enum><header>Extension of
election To accelerate the AMT credit in lieu of bonus depreciation</header>
<paragraph commented="no" id="id7C8F496194074CDF9F2F6C879F82A36F"><enum>(1)</enum><header>In
general</header><text>Subclause (II) of section 168(k)(4)(D)(iii) of the
Internal Revenue Code of 1986 is amended by striking <quote>2013</quote> and
inserting <quote>2015</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) of such Code
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" display-inline="no-display-inline" 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 101(a) of the <short-title>American Growth,
Recovery, Empowerment, and Entrepreneurship Act</short-title> (and the
application of such extension to this paragraph pursuant to the amendment made
by section 101(c)(1) of such
Act).</text>
</clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="H1870DAAC841E498991893EB17F1454DA"><enum>(d)</enum><header>Conforming
amendments</header>
<paragraph id="H1B5C884624FD4C929FA8F3F755BD9D52"><enum>(1)</enum><text>The heading for
subsection (k) of section 168 of the Internal Revenue Code of 1986 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, 2016</header-in-text></quote>.</text>
</paragraph><paragraph id="H277B74A7F4FF4542B1157A2C1CD61434"><enum>(2)</enum><text>The heading for
clause (ii) of section 168(k)(2)(B) of such Code 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, 2016</header-in-text></quote>.</text>
</paragraph><paragraph commented="no" id="ID45758bc8c570427dbc7a0f0b36142a1f"><enum>(3)</enum><text>Paragraph (5) of
section 168(l) of such Code 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, 2016</quote> in clause (i)
thereof,
and</text>
</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subparagraph></paragraph><paragraph id="H6C4C14465B2A438C87DFC9F09E4D8DF6"><enum>(4)</enum><text>Subparagraph (C)
of section 168(n)(2) of such Code is amended by striking <quote>January 1,
2013</quote> and inserting <quote>January 1, 2016</quote>.</text>
</paragraph><paragraph id="H6E0D5561290743C1A199798B98562495"><enum>(5)</enum><text>Subparagraph (D)
of section 1400L(b)(2) of such Code is amended by striking <quote>January 1,
2013</quote> and inserting <quote>January 1, 2016</quote>.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H6FBAA080000446E998ACEAC28F7BAD01"><enum>(6)</enum><text>Subparagraph (B)
of section 1400N(d)(3) of such Code is amended by striking <quote>January 1,
2013</quote> and inserting <quote>January 1, 2016</quote>.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="HDDA49039567D4CC4B13545CA9823738C"><enum>(e)</enum><header>Effective
date</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="idC3D5BA34547F435BBB7BC49F43B386AB"><enum>102.</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) of the Internal Revenue Code of 1986 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, 2012, 2013, or 2014</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>2015</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>2015</quote>.</text>
</paragraph></subsection><subsection id="idF0888D06A88D4B94A6DA2CFABB40265D"><enum>(b)</enum><header>Inflation
adjustment</header><text>Subparagraph (A) of section 179(b)(6) of the Internal
Revenue Code of 1986 is amended by striking <quote>2012</quote> and inserting
<quote>2015</quote>.</text>
</subsection><subsection id="idA2923FC914214062B3152258D42AEE6C"><enum>(c)</enum><header>Computer
software</header><text>Section 179(d)(1)(A)(ii) of the Internal Revenue Code of
1986 is amended by striking <quote>2013</quote> and inserting
<quote>2016</quote>.</text>
</subsection><subsection id="idA4061141549C49C595F0EE0CC02F7B20"><enum>(d)</enum><header>Election</header><text>Section
179(c)(2) of the Internal Revenue Code of 1986 is amended by striking
<quote>2013</quote> and inserting <quote>2016</quote>.</text>
</subsection><subsection id="id28964FBB89BE446C841D632616D4143A"><enum>(e)</enum><header>Special rules
for treatment of qualified real property</header><text>Section 179(f)(1) of the
Internal Revenue Code of 1986 is amended by striking <quote>2010 or
2011</quote> and inserting <quote>2010, 2011, 2012, 2013, or
2014</quote>.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" 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="H9E121C1381604F77B3EC6894D54245E3" section-type="subsequent-section"><enum>103.</enum><header>Temporary exclusion
of 100 percent of gain on certain small business stock</header>
<subsection id="HBB9A157967DD42C1BD6726BB24B10686"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">Paragraph (4) of
section 1202(a) of the Internal Revenue Code of 1986 is amended—</text>
<paragraph id="H91C39C6270794367BB134075D546CE65"><enum>(1)</enum><text display-inline="yes-display-inline">by striking <quote>January 1, 2012</quote>
and inserting <quote>January 1, 2015</quote>, and</text>
</paragraph><paragraph id="HE086716D4CBF41BABE6B66EA08BEE78D"><enum>(2)</enum><text>by striking
<quote><header-in-text level="paragraph" style="OLC">and
2011</header-in-text></quote> in the heading thereof and inserting
<quote><header-in-text level="paragraph" style="OLC">, 2011, 2012, 2013, and
2014</header-in-text></quote>.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H6A5D07046A274F05A742E9EEF2632AF8"><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><enum>II</enum><header>Encouraging
cutting-edge research and innovation</header>
<section id="H14137D4CE21344A8A724FAAF9E4945C7" section-type="subsequent-section"><enum>201.</enum><header>Extension of
research credit; alternative simplified research credit increased and made
permanent</header>
<subsection id="HD4CE3471461A4DF8A31842BB0653DCF8"><enum>(a)</enum><header>Extension of
credit</header>
<paragraph id="HA2B8372046374E7CABFC9CAC7A8A9B86"><enum>(1)</enum><header>In
general</header><text display-inline="yes-display-inline">Subparagraph (B) of
section 41(h)(1) of the Internal Revenue Code of 1986 is amended by striking
<quote>December 31, 2011</quote> and inserting <quote>December 31,
2012</quote>.</text>
</paragraph><paragraph id="HAC09274841FF4C0AABAB2C1B9A1F1C96"><enum>(2)</enum><header>Conforming
amendment</header><text display-inline="yes-display-inline">Subparagraph (D) of
section 45C(b)(1) of such Code is amended by striking <quote>December 31,
2011</quote> and inserting <quote>December 31, 2012</quote>.</text>
</paragraph><paragraph id="H9BD598651E13455085AA70EC40B761E5"><enum>(3)</enum><header>Effective
date</header><text display-inline="yes-display-inline">The amendments made by
this subsection shall apply to amounts paid or incurred after December 31,
2011.</text>
</paragraph></subsection><subsection id="HE0EB41E523A54C6C8BE46994BA6D3D7B"><enum>(b)</enum><header>Alternative
simplified research credit increased and made permanent</header>
<paragraph id="HDECA23DFBB174B8E85CB6124FAEE5050"><enum>(1)</enum><header>Increased
credit</header><text>Subparagraph (A) of section 41(c)(5) of the Internal
Revenue Code of 1986 is amended by striking <quote>14 percent (12 percent in
the case of taxable years ending before January 1, 2009)</quote> and inserting
<quote>20 percent</quote>.</text>
</paragraph><paragraph id="HEA57303D37FE43EB9152327F955463DD"><enum>(2)</enum><header>Credit made
permanent</header>
<subparagraph id="HEF8EC9681FF94BF1ACA02B615CBD7851"><enum>(A)</enum><header>In
general</header><text>Subsection (h) of section 41 of such Code is amended by
redesignating the paragraph (2) relating to computation of taxable year in
which credit terminates as paragraph (4) and by inserting before such paragraph
the following new paragraph:</text>
<quoted-block display-inline="no-display-inline" id="H194213AB59EE4C3E95061745978EC0F8" style="OLC">
<paragraph id="HDBBE5F9FF0DB4B15A63961DD149E1F02"><enum>(3)</enum><header>Termination not
to apply to alternative simplified credit</header><text display-inline="yes-display-inline">Paragraph (1) shall not apply to the credit
determined under subsection
(c)(5).</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subparagraph><subparagraph id="H874701D62C704EC9859F0BCE2D1ACEC7"><enum>(B)</enum><header>Conforming
amendment</header><text>Paragraph (4) of section 41(h) of such Code, as
redesignated by subparagraph (A), is amended to read as follows:</text>
<quoted-block display-inline="no-display-inline" id="H1C5F7CABC3B44BBFBB682D31D28EA5A2" style="OLC">
<paragraph id="H35ADCD046D4F44DB87DB7D9944CDCE0A"><enum>(4)</enum><header>Computation for
taxable year in which credit terminates</header><text display-inline="yes-display-inline">In the case of any taxable year with
respect to which this section applies to a number of days which is less than
the total number of days in such taxable year, the amount determined under
subsection (c)(1)(B) with respect to such taxable year shall be the amount
which bears the same ratio to such amount (determined without regard to this
paragraph) as the number of days in such taxable year to which this section
applies bears to the total number of days in such taxable
year.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="HFC88AEE536C04FFB87ECEF95BDBF4D73"><enum>(3)</enum><header>Effective
date</header><text>The amendments made by this subsection shall apply to
taxable years ending after December 31, 2010.</text>
</paragraph></subsection></section><section id="idA6B460C503E4430DBE1BC8744C374963" section-type="subsequent-section"><enum>202.</enum><header>Enhanced research
credit for domestic manufacturers</header>
<subsection id="id0A2443955BD246E6A1BF43F269D1545E"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">Section 41, as
amended by section 201, of the Internal Revenue Code of 1986 is amended by
redesignating subsection (h) as subsection (i) and by inserting after
subsection (f) the following new subsection:</text>
<quoted-block display-inline="no-display-inline" id="id08CFC23971DC4FCB94F9C752574FD791" style="OLC">
<subsection id="id2D1059438C7346ABA52E871EF6EA9865"><enum>(g)</enum><header>Enhanced credit
for domestic manufacturers</header>
<paragraph id="id400EF45340EA4D009D33EF9A2DC9F26C"><enum>(1)</enum><header>In
general</header><text>In the case of a qualified domestic manufacturer, this
section shall be applied by increasing the 20 percent amount in subsection
(a)(1) by the bonus amount.</text>
</paragraph><paragraph id="idEBB49E0CAEEE41E4B172461186610D61"><enum>(2)</enum><header>Qualified
domestic manufacturer</header><text>For purposes of this subsection—</text>
<subparagraph id="id085A70B4EAEB43BABF281260D7D2D59B"><enum>(A)</enum><header>In
general</header><text>The term <term>qualified domestic manufacturer</term>
means a taxpayer who has domestic production gross receipts which are more than
50 percent of total production gross receipts.</text>
</subparagraph><subparagraph id="id28DBFFD60F6248E19564795904C398A9"><enum>(B)</enum><header>Domestic
production gross receipts</header><text>The term <term>domestic production
gross receipts</term> has the meaning given to such term under section
199(c)(4).</text>
</subparagraph><subparagraph id="id44B7F1BB69454365B9B470DFDBBBA0EF"><enum>(C)</enum><header>Total
production gross receipts</header><text>The term <term>total production gross
receipts</term> means the gross receipts of the taxpayer which are described in
section 199(c)(4), determined—</text>
<clause id="id736C2B071AD44C6DB5E0FD0099B8A25E"><enum>(i)</enum><text>without regard to
whether property described in subparagraph (A)(i)(I) or (A)(i)(III) thereof was
manufactured, produced, grown, or extracted in the United States,</text>
</clause><clause id="idD94EBA89D0C44DC19739FDE70D5E1CD0"><enum>(ii)</enum><text>by substituting
<quote>any property described in section 168(f)(3)</quote> for <quote>any
qualified film</quote> in subparagraph (A)(i)(II) thereof, and</text>
</clause><clause id="id3D16087025FF4B69B0EABD64696E4B0E"><enum>(iii)</enum><text>without regard
to whether any construction described in subparagraph (A)(ii) thereof or
services described in subparagraph (A)(iii) thereof were performed in the
United States.</text>
</clause></subparagraph></paragraph><paragraph id="id4B3F7C6BCEEB4CD2AC6C760E2CC382EF"><enum>(3)</enum><header>Bonus
amount</header><text>For purposes of paragraph (1), the bonus amount shall be
determined as follows:</text>
<table align-to-level="section" blank-lines-before="1" colsep="0" frame="none" line-rules="no-gen" rowsep="0" rule-weights="0.0.0.0.0.0" table-template-name="Entry: 2 text, bold hds" table-type="">
<tgroup cols="2" grid-typeface="1.1" rowsep="0" thead-tbody-ldg-size="0.10.12"><colspec coldef="txt" colname="column1" colsep="0" colwidth="230pts" min-data-value="190" rowsep="0"></colspec><colspec coldef="txt-no-ldr-no-spread" colname="column2" colsep="0" colwidth="95pts" min-data-value="95" rowsep="0"></colspec>
<tbody>
<row><entry colname="column1" leader-modify="clr-ldr" rowsep="0" stub-definition="txt-clr" stub-hierarchy="1"><bold>If the percentage of total
production gross receipts which are domestic production gross receipts
is:</bold></entry><entry colname="column2" leader-modify="clr-ldr"><bold>The
bonus amount is:</bold></entry>
</row>
<row><entry colname="column1" rowsep="0" stub-definition="txt-ldr" stub-hierarchy="2">More than 50 percent and not more
than 60 percent</entry><entry colname="column2" leader-modify="clr-ldr" rowsep="0">2 percentage points</entry>
</row>
<row><entry colname="column1" rowsep="0" stub-definition="txt-ldr" stub-hierarchy="2">More than 60 percent and not more
than 70 percent</entry><entry colname="column2" leader-modify="clr-ldr" rowsep="0">4 percentage points</entry>
</row>
<row><entry colname="column1" rowsep="0" stub-definition="txt-ldr" stub-hierarchy="2">More than 70 percent and not more
than 80 percent</entry><entry colname="column2" leader-modify="clr-ldr" rowsep="0">6 percentage points</entry>
</row>
<row><entry colname="column1" rowsep="0" stub-definition="txt-ldr" stub-hierarchy="2">More than 80 percent and not more
than 90 percent</entry><entry colname="column2" leader-modify="clr-ldr" rowsep="0">8 percentage points</entry>
</row>
<row><entry colname="column1" rowsep="0" stub-definition="txt-ldr" stub-hierarchy="2">More than 90 percent</entry><entry colname="column2" leader-modify="clr-ldr" rowsep="0">10 percentage
points.</entry>
</row>
</tbody>
</tgroup></table>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" display-inline="no-display-inline" id="id2DFFEEDEE2754B82BB3B9ED482D16096"><enum>(b)</enum><header>Effective
date</header><text>The amendment made by this section shall apply to
expenditures paid or incurred in taxable years beginning after December 31,
2011.</text>
</subsection></section><enum>III</enum><header>Providing
common-sense tax incentives for veterans</header>
<section id="H860623848C694584AA8CCF3500109D83"><enum>301.</enum><header>Veterans
franchise fee credit</header>
<subsection id="H3966A337650C42B3A5F44C3DEC8F4E17"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">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:</text>
<quoted-block display-inline="no-display-inline" id="HAC11DA151A594BF7B45AC1E0EE56BA1A" style="OLC">
<section id="HAD8F75E3CBD84BFBA4BA2885EAD390D7"><enum>45S.</enum><header>Veterans
franchise fee credit</header>
<subsection id="H440C62BEECF649A7ABEDF07245B6D060"><enum>(a)</enum><header>Veterans
franchise fee credit</header>
<paragraph id="H6FA9F40DDD7B4F369512C6F824596370"><enum>(1)</enum><header>In
general</header><text>For purposes of section 38, the veterans franchise fee
credit determined under this section for the taxable year is an amount equal to
25 percent of the qualified franchise fees paid or incurred by a veteran during
the taxable year.</text>
</paragraph><paragraph id="H5E0787F00D2D41A08748DA592CB28311"><enum>(2)</enum><header>Limitation</header><text display-inline="yes-display-inline">The amount allowed as a credit under
paragraph (1) with respect to the purchase of any franchise shall not exceed
$100,000.</text>
</paragraph></subsection><subsection id="H9ECAB3F799074A0A985F919A4BB276D2"><enum>(b)</enum><header>Reduction where
franchise not 100 percent veteran-Owned</header><text>In the case of any
franchise in which veterans do not own 100 percent of the stock or of the
capital or profits interests of the franchise, the credit under subsection (a)
shall be the credit amount determined under such subsection, multiplied by the
same ratio as—</text>
<paragraph id="H44AF5A83EA264832967D8F1B6896C168"><enum>(1)</enum><text>the stock or
capital or profits interests of the franchise held by veterans, bears</text>
</paragraph><paragraph id="H8A0F544E3D3E4370A32402651EABBEF6"><enum>(2)</enum><text>to the total stock
or capital or profits interests of the franchise.</text>
</paragraph><continuation-text continuation-text-level="subsection">For
purposes of this subsection, the spouse of a veteran shall be treated as a
veteran.</continuation-text></subsection><subsection id="H04645509F7CA47C2A45A64BA406E6E07"><enum>(c)</enum><header>Qualified
franchise fee</header><text display-inline="yes-display-inline">For purposes of
this section, the term <term>qualified franchise fee</term> means any one-time
fee required by the franchisor when entering into a franchise agreement with a
veteran as the franchisee.</text>
</subsection><subsection id="H8407B58CF63B4E9BAC7B885AAEDF44DF"><enum>(d)</enum><header>Other
definitions</header><text display-inline="yes-display-inline">For purposes of
this section, the terms <term>franchise</term>, <term>franchisee</term>,
<term>franchisor</term>, and <term>franchise fee</term> have the meanings given
such terms in part 436 of title 16, Code of Federal Regulations (as in effect
on January 1, 2009).</text>
</subsection><subsection id="H263BEEBDAB784A9B9CB4AC4DAAD89658"><enum>(e)</enum><header>Veteran</header><text>The
term <term>veteran</term> has the meaning given such term by section 101 of
title 38, United States Code.</text>
</subsection><subsection id="HC020AF18B8DD4CDC9664BC1C6309D59A"><enum>(f)</enum><header>Election</header><text>This
section shall not apply to a taxpayer for any taxable year if such taxpayer
elects to have this section not apply for such taxable
year.</text>
</subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="H17B6A988D83446A6B50191DE8534A05D"><enum>(b)</enum><header>Credit To be
part of general business credit</header><text>Section 38(b) of the Internal
Revenue Code of 1986 is amended by striking <quote>plus</quote> at the end of
paragraph (35), by striking the period at the end of paragraph (36) and
inserting <quote>, plus</quote>, and by adding at the end the following new
paragraph:</text>
<quoted-block display-inline="no-display-inline" id="H230A80CE418E4FA584D2B57B2F0B38A2" style="OLC">
<paragraph id="H3A764A9905694D4AA14D8A3F853F3AE2"><enum>(37)</enum><text display-inline="yes-display-inline">the veterans franchise fee credit
determined under section
45S(a).</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="HDF389C62EBDE49EE8FBC6F13C07D8774"><enum>(c)</enum><header>Clerical
amendment</header><text display-inline="yes-display-inline">The table of
sections for 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
item:</text>
<quoted-block display-inline="no-display-inline" id="H444ADE5FB9584C83A46A8E2F27E412EA" style="OLC">
<toc container-level="quoted-block-container" idref="HAC11DA151A594BF7B45AC1E0EE56BA1A" lowest-bolded-level="division-lowest-bolded" lowest-level="section" quoted-block="no-quoted-block" regeneration="yes-regeneration">
<toc-entry idref="HAD8F75E3CBD84BFBA4BA2885EAD390D7" level="section">Sec. 45S. Veterans franchise fee
credit.</toc-entry>
</toc>
<after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection display-inline="no-display-inline" id="H32EA2EDDCF60428EBAFCAD8FC8F8CED4"><enum>(d)</enum><header>Effective
date</header><text>The amendments made by this section shall apply to taxable
years ending after December 31, 2010.</text>
</subsection></section><section commented="no" display-inline="no-display-inline" id="HE233F2ED82DF4B838A7580380205A06B" section-type="subsequent-section"><enum>302.</enum><header>Publication of
information by Department of Veterans Affairs and Small Business
Administration</header><text display-inline="no-display-inline">The
Administrator of the Small Business Administration and the Secretary of
Veterans Affairs shall publicize in mailings and brochures sent to veterans
service organizations and veteran advocacy groups information regarding
discounted franchise fees under section 45S of the Internal Revenue Code of
1986 and other information about the program established under amendments made
by this Act.</text>
</section><enum>IV</enum><header>Regulatory
relief for small companies</header>
<section id="HA4813C9A6889497FBE1CDD1CFC2970D5"><enum>401.</enum><header>Exemption from
the internal control reporting and assessment requirements</header>
<subsection id="id863D6FA6A21E4FADA3068BFA2ADDAB28"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">Section 404 of the
Sarbanes-Oxley Act of 2002 (15 U.S.C. 7262) is amended by adding at the end the
following:</text>
<quoted-block display-inline="no-display-inline" id="HDA599EBB0D954683A874355F9EC4918D" style="OLC">
<subsection id="H9460BBA0574542259A592FBE3799295D"><enum>(d)</enum><header>Exemption</header><text display-inline="yes-display-inline">Subsection (b) shall not apply to any
issuer until the earlier of—</text>
<paragraph id="id24082D3F80E24A30A911407F133BBFAE"><enum>(1)</enum><text display-inline="yes-display-inline">such time as the issuer has total revenues
of $250,000,000; and</text>
</paragraph><paragraph id="idCD7345D307A341F2876BF0C5CA68ADAD"><enum>(2)</enum><text display-inline="yes-display-inline">the expiration of the 5-year period
beginning on the date of the initial public offering of that
issuer.</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="ID9aded9b28a3248819970db5c933d36e6"><enum>(b)</enum><header>Study and
report</header>
<paragraph id="idABD74B39AB3347798F77B8853EA63487"><enum>(1)</enum><header>Study</header><text>The
Securities and Exchange Commission shall conduct a study—</text>
<subparagraph id="idB958552BF9A64469900BF290B2F30392"><enum>(A)</enum><text>to determine how
the Commission could reduce the burden of complying with section 404(b) of the
Sarbanes-Oxley Act of 2002 for companies, the market capitalization of which is
between $250,000,000 and $1,000,000,000 for the relevant reporting period while
maintaining investor protections for such companies; and</text>
</subparagraph><subparagraph id="id135FDBF8F4CD4A4A8D1F72CD9B3056E9"><enum>(B)</enum><text>to assess the
annual cost of compliance with that section 404(b) for all companies whose
market capitalization is less than or equal to $1,000,000,000.</text>
</subparagraph></paragraph><paragraph id="id6DBB8B28C7B7494DB49B895B55621FDC"><enum>(2)</enum><header>Report</header><text>The
Securities and Exchange Commission shall submit a report to Congress on the
results of the study conducted under paragraph (1) not later than 9 months
after the date of enactment of this Act.</text>
</paragraph></subsection></section><enum>V</enum><header>Reducing barriers
to high-skilled legal immigration</header>
<section id="H6343391472A44BF0884BAD0CFF83B119"><enum>501.</enum><header>Numerical
limitation to any single foreign state</header>
<subsection id="HFE2AD975866A44559BA6B1EFA5089B5B"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">Section 202(a)(2) of
the Immigration and Nationality Act (8 U.S.C. 1152(a)(2)) is amended—</text>
<paragraph id="H6D42897208C7426E87E20CE2BDC07ADD"><enum>(1)</enum><text>in the paragraph
heading, by striking <quote><header-in-text level="paragraph" style="OLC">and
employment-based</header-in-text></quote>;</text>
</paragraph><paragraph id="H29C2AB1B17D946C88927F89C3D632EDC"><enum>(2)</enum><text>by striking
<quote>(3), (4), and (5),</quote> and inserting <quote>(3) and
(4),</quote>;</text>
</paragraph><paragraph id="H2939EFF786BB492AA8924883A79D87DB"><enum>(3)</enum><text>by striking
<quote>subsections (a) and (b) of section 203</quote> and inserting
<quote>section 203(a)</quote>;</text>
</paragraph><paragraph id="H6E7DA5CD7A7C41E8B7142EC46E4FE481"><enum>(4)</enum><text>by striking
<quote>7</quote> and inserting <quote>15</quote>; and</text>
</paragraph><paragraph id="HA1B1E9479AD946B98EDC60CE1EA88B50"><enum>(5)</enum><text>by striking
<quote>such subsections</quote> and inserting <quote>such
section</quote>.</text>
</paragraph></subsection><subsection id="HBB0BFC503A6A476097117CA661C2D6B5"><enum>(b)</enum><header>Conforming
amendments</header><text>Section 202 of the Immigration and Nationality Act (8
U.S.C. 1152) is amended—</text>
<paragraph id="H962912BF4B3B4AAC91F3C3C6D36C6CE2"><enum>(1)</enum><text>in subsection
(a)(3), by striking <quote>both subsections (a) and (b) of section 203</quote>
and inserting <quote>section 203(a)</quote>;</text>
</paragraph><paragraph id="HE257A2B60A3B4BD88002327720956C9C"><enum>(2)</enum><text display-inline="yes-display-inline">by striking subsection (a)(5); and</text>
</paragraph><paragraph id="HB724BDE4682B44D29D47F788C1D5FAF6"><enum>(3)</enum><text>by amending
subsection (e) to read as follows:</text>
<quoted-block display-inline="no-display-inline" id="HAC17A9C8A560473D88C28B378E333BDB" style="OLC">
<subsection id="H36D752C97AFF403CA7E9465FD616F8A9"><enum>(e)</enum><header>Special rules
for countries at ceiling</header><text display-inline="yes-display-inline">If
it is determined that the total number of immigrant visas made available under
section 203(a) to natives of any single foreign state or dependent area will
exceed the numerical limitation specified in subsection (a)(2) in any fiscal
year, in determining the allotment of immigrant visa numbers to natives under
section 203(a), visa numbers with respect to natives of that state or area
shall be allocated (to the extent practicable and otherwise consistent with
this section and section 203) in a manner so that, except as provided in
subsection (a)(4), the proportion of the visa numbers made available under each
of paragraphs (1) through (4) of section 203(a) is equal to the ratio of the
total number of visas made available under the respective paragraph to the
total number of visas made available under section
203(a).</text>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="H8741B2184614467F8EBC65CCEE86C655"><enum>(c)</enum><header>Country-Specific
offset</header><text display-inline="yes-display-inline">Section 2 of the
Chinese Student Protection Act of 1992 (8 U.S.C. 1255 note) is amended—</text>
<paragraph id="H9CEC65489BA0476BBC0903058891F7CD"><enum>(1)</enum><text>in subsection (a),
by striking <quote>subsection (e))</quote> and inserting <quote>subsection
(d))</quote>; and</text>
</paragraph><paragraph id="HFDD33ED3520E4799B0E90E028A7A244E"><enum>(2)</enum><text>by striking
subsection (d) and redesignating subsection (e) as subsection (d).</text>
</paragraph></subsection><subsection id="H6D8622F338F8474C964617A0842213E7"><enum>(d)</enum><header>Effective
date</header><text>The amendments made by this section shall take effect as if
enacted on September 30, 2011, and shall apply to fiscal years beginning with
fiscal year 2012.</text>
</subsection><subsection id="H60EE61E1B12E485B8BB8D36EE0026805"><enum>(e)</enum><header>Transition rules
for employment-Based immigrants</header>
<paragraph id="HAB7FC6FD358B4AD5A218B8EA6999AB9A"><enum>(1)</enum><header>In
general</header><text display-inline="yes-display-inline">Subject to the
succeeding paragraphs of this subsection and notwithstanding title II of the
Immigration and Nationality Act (8 U.S.C. 1151 et seq.), the following rules
shall apply:</text>
<subparagraph id="H9DD8337290194F2EA5E159DC6F7847AB"><enum>(A)</enum><text>For fiscal year
2012, 15 percent of the immigrant visas made available under each of paragraphs
(2) and (3) of section 203(b) of such Act (8 U.S.C. 1153(b)) shall be allotted
to immigrants who are natives of a foreign state or dependent area that was not
one of the two states with the largest aggregate numbers of natives obtaining
immigrant visas during fiscal year 2010 under such paragraphs.</text>
</subparagraph><subparagraph id="H167872EB65354AF2B245FD612EB424B9"><enum>(B)</enum><text>For fiscal year
2013, 10 percent of the immigrant visas made available under each of such
paragraphs shall be allotted to immigrants who are natives of a foreign state
or dependent area that was not one of the two states with the largest aggregate
numbers of natives obtaining immigrant visas during fiscal year 2011 under such
paragraphs.</text>
</subparagraph><subparagraph id="H9CE3F885D979426E857B1DA22B261E6F"><enum>(C)</enum><text>For fiscal year
2014, 10 percent of the immigrant visas made available under each of such
paragraphs shall be allotted to immigrants who are natives of a foreign state
or dependent area that was not one of the two states with the largest aggregate
numbers of natives obtaining immigrant visas during fiscal year 2012 under such
paragraphs.</text>
</subparagraph></paragraph><paragraph id="H5B2034269CFA48F48AC05D8B8F54F2F0"><enum>(2)</enum><header>Per-country
levels</header>
<subparagraph id="HF324E1CA049F484B9166B8FB5E22B4A1"><enum>(A)</enum><header>Reserved
visas</header><text display-inline="yes-display-inline">With respect to the
visas reserved under each of subparagraphs (A) through (C) of paragraph (1),
the number of such visas made available to natives of any single foreign state
or dependent area in the appropriate fiscal year may not exceed 25 percent (in
the case of a single foreign state) or 2 percent (in the case of a dependent
area) of the total number of such visas.</text>
</subparagraph><subparagraph id="H97AABB43142844818E73A9DF91A2063A"><enum>(B)</enum><header>Unreserved
visas</header><text display-inline="yes-display-inline">With respect to the
immigrant visas made available under each of paragraphs (2) and (3) of section
203(b) of such Act (8 U.S.C. 1153(b)) and not reserved under paragraph (1), for
each of fiscal years 2012, 2013, and 2014, not more than 85 percent shall be
allotted to immigrants who are natives of any single foreign state.</text>
</subparagraph></paragraph><paragraph id="H779ADE574AA142248759B9A6748A46C1"><enum>(3)</enum><header>Special rule to
prevent unused visas</header><text display-inline="yes-display-inline">If, with
respect to fiscal year 2012, 2013, or 2014, the operation of paragraphs (1) and
(2) of this subsection would prevent the total number of immigrant visas made
available under paragraph (2) or (3) of section 203(b) of such Act (8 U.S.C.
1153(b)) from being issued, such visas may be issued during the remainder of
such fiscal year without regard to paragraphs (1) and (2) of this
subsection.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H5A1B68CE0E9B4CEBA00EC6D2635B7CCA"><enum>(4)</enum><header>Rules for
chargeability</header><text display-inline="yes-display-inline">Section 202(b)
of such Act (8 U.S.C. 1152(b)) shall apply in determining the foreign state to
which an alien is chargeable for purposes of this subsection.</text>
</paragraph></subsection></section><enum>VI</enum><header>Protecting
American business against illegal counterfeiting</header>
<section id="idAF1249EFC413403187B6C4735A8140CE"><enum>601.</enum><header>Preventing the
importation of counterfeit products and infringing devices</header><text display-inline="no-display-inline">Notwithstanding section 1905 of title 18,
United States Code—</text>
<paragraph id="id0FD1A750CB9F411DB7915267DBA70F4D"><enum>(1)</enum><text display-inline="yes-display-inline">if United States Customs and Border
Protection suspects a product of being imported or exported in violation of
section 42 of the Act entitled <quote>An Act to provide for the registration
and protection of trademarks used in commerce, to carry out the provisions of
certain international conventions, and for other purposes</quote>, approved
July 5, 1946 (commonly referred to as the <quote><act-name>Trademark Act of
1946</act-name></quote>) (15 U.S.C. 1124), and subject to any applicable
bonding requirements, the Secretary of Homeland Security is authorized to share
information on, and unredacted samples of, products and their packaging and
labels, or photos of such products, packaging and labels, with the rightholders
of the trademark suspected of being copied or simulated, for purposes of
determining whether the products are prohibited from importation under that
section; and</text>
</paragraph><paragraph id="id5B343E516C8742B8A83260753EB43492"><enum>(2)</enum><text display-inline="yes-display-inline">upon seizure of material by United States
Customs and Border Protection imported in violation of subsection (a)(2) or
subsection (b) of section 1201 of title 17, United States Code, the Secretary
of Homeland Security is authorized to share information about, and provide
samples to affected parties, subject to any applicable bonding requirements, as
to the seizure of material designed to circumvent technological measures or
protection afforded by a technological measure that controls access to or
protects the owner's work protected by copyright under such title.</text>
</paragraph></section>