[Congressional Bills 112th Congress]
[From the U.S. Government Publishing Office]
[S. 2284 Introduced in Senate (IS)]

112th CONGRESS
  2d Session
                                S. 2284

  To amend the Internal Revenue Code of 1986 to provide expensing for 
                           small businesses.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             April 16, 2012

  Mr. Begich introduced the following bill; which was read twice and 
                  referred to the Committee on Finance

_______________________________________________________________________

                                 A BILL


 
  To amend the Internal Revenue Code of 1986 to provide expensing for 
                           small businesses.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. ELECTION FOR SMALL BUSINESSES TO EXPENSE DEPRECIABLE 
              PROPERTY.

    (a) In General.--Part VI of subchapter B of chapter 1 of the 
Internal Revenue Code of 1986 is amended by inserting after section 
179E the following new section:

``SEC. 179F. ELECTION FOR SMALL BUSINESSES TO EXPENSE CERTAIN 
              DEPRECIABLE PROPERTY.

    ``(a) In General.--An eligible small business may elect to treat 
the cost of any qualified property as an expense which is not 
chargeable to a capital account.
    ``(b) Eligible Small Business.--For purposes of this section--
            ``(1) In general.--The term `eligible small business' 
        means, with respect to any taxable year, any trade or business 
        the net profit of which does not exceed $1,000,000.
            ``(2) Net profit.--The term `net profit' means the excess 
        of the aggregate gross receipts over the sum of--
                    ``(A) the costs of goods sold which are allocable 
                to such receipts, and
                    ``(B) other expenses, losses, or deductions which 
                are properly allocable to such receipts.
            ``(3) Aggregation rules.--All persons treated as a single 
        employer under subsection (a) or (b) of section 52 or 
        subsection (m) or (o) of section 414 shall be treated as a 
        single trade or business for purposes of this subsection.
    ``(c) Election.--An election under this section for any taxable 
year shall be made on the taxpayer's return of the tax imposed by this 
chapter for the taxable year. Such election shall be made in such 
manner as the Secretary may by regulation prescribe.
    ``(d) Definitions and Special Rules.--
            ``(1) Qualified property.--For purposes of this section, 
        the term `qualified property' means any property which is 
        section 179 property as defined in section 179(d)(1), 
        determined--
                    ``(A) without regard to any placed in service date 
                under subparagraph (A)(ii) thereof, and
                    ``(B) without regard to any taxable year limitation 
                under section 179(f).
            ``(2) Special rules.--For purposes of this section, rules 
        similar to the rules of paragraphs (3), (4), (5), (9), and (10) 
        of section 179(d) shall apply.''.
    (b) Clerical Amendment.--Part VI of subchapter B of chapter 1 of 
the Internal Revenue Code of 1986 is amended by inserting after the 
item relating to section 179E the following new item:

``Sec. 179F. Election for small businesses to expense certain 
                            depreciable property.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2012.
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