[Congressional Bills 114th Congress]
[From the U.S. Government Publishing Office]
[S. 1141 Introduced in Senate (IS)]

114th CONGRESS
  1st Session
                                S. 1141

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


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             April 30, 2015

Ms. Collins (for herself and Mr. Casey) 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 tax incentives 
                         for small businesses.

    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 ``Small Business Tax Certainty and 
Growth Act of 2015''.

SEC. 2. SENSE OF THE SENATE REGARDING TAX REFORM.

    It is the sense of the Senate that Congress should undertake 
comprehensive tax reform legislation to--
            (1) make our system fairer and simpler; and
            (2) promote economic growth.

SEC. 3. PERMANENT DOUBLING OF DEDUCTIONS FOR START-UP EXPENSES, 
              ORGANIZATIONAL EXPENSES, AND SYNDICATION FEES.

    (a) Start-Up Expenses.--
            (1) In general.--Clause (ii) of section 195(b)(1)(A) of the 
        Internal Revenue Code of 1986 is amended--
                    (A) by striking ``$5,000'' and inserting 
                ``$10,000'', and
                    (B) by striking ``$50,000'' and inserting 
                ``$60,000''.
            (2) Conforming amendment.--Subsection (b) of section 195 of 
        such Code is amended by striking paragraph (3).
    (b) Organizational Expenses.--Subparagraph (B) of section 248(a)(1) 
of the Internal Revenue Code of 1986 is amended--
            (1) by striking ``$5,000'' and inserting ``$10,000'', and
            (2) by striking ``$50,000'' and inserting ``$60,000''.
    (c) Organization and Syndication Fees.--Clause (ii) of section 
709(b)(1)(A) of the Internal Revenue Code of 1986 is amended--
            (1) by striking ``$5,000'' and inserting ``$10,000'', and
            (2) by striking ``$50,000'' and inserting ``$60,000''.
    (d) Effective Date.--The amendments made by this section shall 
apply to amounts paid or incurred in taxable years ending on or after 
the date of the enactment of this Act.

SEC. 4. CLARIFICATION OF CASH ACCOUNTING RULES FOR SMALL BUSINESS.

    (a) Cash Accounting Permitted.--
            (1) In general.--Section 446 of the Internal Revenue Code 
        of 1986 is amended by adding at the end the following new 
        subsection:
    ``(g) Certain Small Business Taxpayers Permitted To Use Cash 
Accounting Method Without Limitation.--
            ``(1) In general.--An eligible taxpayer shall not be 
        required to use an accrual method of accounting for any taxable 
        year.
            ``(2) Eligible taxpayer.--For purposes of this subsection, 
        a taxpayer is an eligible taxpayer with respect to any taxable 
        year if--
                    ``(A) for all prior taxable years beginning after 
                December 31, 2015, the taxpayer (or any predecessor) 
                met the gross receipts test of section 448(c), and
                    ``(B) the taxpayer is not subject to section 447 or 
                448.''.
            (2) Expansion of gross receipts test.--
                    (A) In general.--Paragraph (3) of section 448(b) of 
                such Code is amended by striking ``$5,000,000'' in the 
                text and in the heading and inserting ``$10,000,000''.
                    (B) Conforming amendments.--Section 448(c) of such 
                Code is amended--
                            (i) by striking ``$5,000,000'' each place 
                        it appears in the text and in the heading of 
                        paragraph (1) and inserting ``$10,000,000'', 
                        and
                            (ii) by adding at the end the following new 
                        paragraph:
            ``(4) Inflation adjustment.--In the case of any taxable 
        year beginning in a calendar year after 2016, the dollar amount 
        contained in subsection (b)(3) and paragraph (1) of this 
        subsection shall be increased by an amount equal to--
                    ``(A) such dollar amount, multiplied by
                    ``(B) the cost-of-living adjustment determined 
                under section 1(f)(3) for the calendar year in which 
                the taxable year begins, by substituting `calendar year 
                2015' for `calendar year 1992' in subparagraph (B) 
                thereof.
        If any amount as adjusted under this subparagraph is not a 
        multiple of $100,000, such amount shall be rounded to the 
        nearest multiple of $100,000.''.
    (b) Clarification of Inventory Rules for Small Business.--
            (1) In general.--Section 471 of the Internal Revenue Code 
        of 1986 is amended by redesignating subsection (c) as 
        subsection (d) and by inserting after subsection (b) the 
        following new subsection:
    ``(c) Small Business Taxpayers Not Required To Use Inventories.--
            ``(1) In general.--A qualified taxpayer shall not be 
        required to use inventories under this section for a taxable 
        year.
            ``(2) Treatment of taxpayers not using inventories.--If a 
        qualified taxpayer does not use inventories with respect to any 
        property for any taxable year beginning after December 31, 
        2015, such property shall be treated as a material or supply 
        which is not incidental.
            ``(3) Qualified taxpayer.--For purposes of this subsection, 
        the term `qualified taxpayer' means--
                    ``(A) any eligible taxpayer (as defined in section 
                446(g)(2)), and
                    ``(B) any taxpayer described in section 
                448(b)(3).''.
            (2) Increased eligibility for simplified dollar-value lifo 
        method.--Section 474(c) of such Code is amended by striking 
        ``$5,000,000'' and inserting ``the dollar amount in effect 
        under section 448(c)(1)''.
    (c) Effective Date and Special Rules.--
            (1) In general.--The amendments made by this section shall 
        apply to taxable years beginning after December 31, 2015.
            (2) Change in method of accounting.--In the case of any 
        taxpayer changing the taxpayer's method of accounting for any 
        taxable year under the amendments made by this section--
                    (A) such change shall be treated as initiated by 
                the taxpayer;
                    (B) such change shall be treated as made with the 
                consent of the Secretary of the Treasury; and
                    (C) the net amount of the adjustments required to 
                be taken into account by the taxpayer under section 481 
                of the Internal Revenue Code of 1986 shall be taken 
                into account over a period (not greater than 4 taxable 
                years) beginning with such taxable year.

SEC. 5. PERMANENT EXTENSION OF EXPENSING LIMITATION.

    (a) Dollar Limitation.--Section 179(b)(1) of the Internal Revenue 
Code of 1986 is amended by striking ``shall not exceed'' and all that 
follows and inserting ``shall not exceed $500,000.''.
    (b) Reduction in Limitation.--Section 179(b)(2) of the Internal 
Revenue Code of 1986 is amended by striking ``exceeds'' and all that 
follows and inserting ``exceeds $2,000,000.''.
    (c) Inflation Adjustment.--Subsection (b) of section 179 of the 
Internal Revenue Code of 1986 is amended by adding at the end the 
following new paragraph:
            ``(6) Inflation adjustment.--
                    ``(A) In general.--In the case of any taxable year 
                beginning in a calendar year after 2016, the $500,000 
                in paragraph (1) and the $2,000,000 amount in paragraph 
                (2) shall each be increased by an amount equal to--
                            ``(i) such dollar amount, multiplied by
                            ``(ii) the cost-of-living adjustment 
                        determined under section 1(f)(3) for the 
                        calendar year in which the taxable year begins, 
                        by substituting `calendar year 2015' for 
                        `calendar year 1992' in subparagraph (B) 
                        thereof.
                    ``(B) Rounding.--
                            ``(i) Dollar limitation.--If the amount in 
                        paragraph (1) as increased under subparagraph 
                        (A) is not a multiple of $1,000, such amount 
                        shall be rounded to the nearest multiple of 
                        $1,000.
                            ``(ii) Phaseout amount.--If the amount in 
                        paragraph (2) as increased under subparagraph 
                        (A) is not a multiple of $10,000, such amount 
                        shall be rounded to the nearest multiple of 
                        $10,000.''.
    (d) Computer Software.--Section 179(d)(1)(A)(ii) of the Internal 
Revenue Code of 1986 is amended by striking ``and before 2015''.
    (e) Election.--Section 179(c)(2) of the Internal Revenue Code of 
1986 is amended by striking ``and before 2015''.
    (f) Special Rules for Treatment of Qualified Real Property.--
            (1) In general.--Section 179(f)(1) of the Internal Revenue 
        Code of 1986 is amended by striking ``after 2009 and before 
        2015'' and inserting ``after 2009''.
            (2) Conforming amendment.--Section 179(f) of such Code is 
        amended by striking paragraph (4).
    (g) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2015.

SEC. 6. EXTENSION OF BONUS DEPRECIATION.

    (a) In General.--Paragraph (2) of section 168(k) of the Internal 
Revenue Code of 1986 is amended--
            (1) by striking ``January 1, 2016'' in subparagraph (A)(iv) 
        and inserting ``January 1, 2017'', and
            (2) by striking ``January 1, 2015'' each place it appears 
        and inserting ``January 1, 2016''.
    (b) Special Rule for Federal Long-Term Contracts.--Clause (ii) of 
section 460(c)(6)(B) of the Internal Revenue Code of 1986 is amended by 
striking ``January 1, 2015 (January 1, 2016'' and inserting ``January 
1, 2016 (January 1, 2017''.
    (c) Conforming Amendments.--
            (1) The heading for subsection (k) of section 168 of the 
        Internal Revenue Code of 1986 is amended by striking ``January 
        1, 2015'' and inserting ``January 1, 2016''.
            (2) The heading for clause (ii) of section 168(k)(2)(B) of 
        such Code is amended by striking ``Pre-january 1, 2015'' and 
        inserting ``Pre-january 1, 2016''.
            (3) Section 168(k)(4)(D) of such Code is amended by 
        striking ``and'' at the end of clause (ii), by striking the 
        period at the end of clause (iii) and inserting a comma, and by 
        adding at the end the following new clauses:
                            ``(iv) `January 1, 2016' shall be 
                        substituted for `January 1, 2017' in 
                        subparagraph (A)(iv) thereof, and
                            ``(v) `January 1, 2015' shall be 
                        substituted for `January 1, 2016' each place it 
                        appears in subparagraph (A) thereof.''.
            (4) Section 168(l)(4) of such Code is amended by striking 
        ``and'' at the end of subparagraph (A), by redesignating 
        subparagraph (B) as subparagraph (C), and by inserting after 
        subparagraph (A) the following new subparagraph:
                    ``(B) by substituting `January 1, 2015' for 
                `January 1, 2016' in clause (i) thereof, and''.
            (5) Clause (ii) of section 168(n)(2)(C) of such Code is 
        amended by striking ``January 1, 2015'' and inserting ``January 
        1, 2016''.
            (6) Subparagraph (D) of section 1400L(b)(2) of such Code is 
        amended by striking ``January 1, 2015'' and inserting ``January 
        1, 2016''.
            (7) Subparagraph (B) of section 1400N(d)(3) of such Code is 
        amended by striking ``January 1, 2015'' and inserting ``January 
        1, 2016''.
    (d) Effective Date.--The amendments made by this section shall 
apply to property placed in service after December 31, 2015, in taxable 
years ending after such date.

SEC. 7. EXTENSION OF 15-YEAR STRAIGHT-LINE COST RECOVERY FOR QUALIFIED 
              LEASEHOLD IMPROVEMENTS, QUALIFIED RESTAURANT BUILDINGS 
              AND IMPROVEMENTS, AND QUALIFIED RETAIL IMPROVEMENTS.

    (a) In General.--Subparagraph (E) of section 168(e)(3) of the 
Internal Revenue Code of 1986 is amended--
            (1) by striking ``property placed in service before January 
        1, 2015,'' in clauses (iv) and (v) and inserting ``property,'', 
        and
            (2) by striking ``, and before January 1, 2015'' in clause 
        (ix).
    (b) Effective Date.--The amendments made by this section shall 
apply to property placed in service after December 31, 2015.
                                 <all>