117 HR 9214 IH: Access Business Credit Act of 2022 U.S. House of Representatives 2022-10-21 text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain.
I117th CONGRESS2d SessionH. R. 9214IN THE HOUSE OF REPRESENTATIVESOctober 21, 2022Mr. Kim of New Jersey introduced the following bill; which was referred to the Committee on Ways and MeansA BILLTo amend the Internal Revenue Code of 1986 to provide an exclusion from gross income for interest on certain small business loans.
1.
Short title
This Act may be cited as the Access Business Credit Act of 2022 or as the ABC Act of 2022.
2.
Exclusion of interest on certain small business loans
(a)
In general
Part III of subchapter B of chapter 1 of the Internal Revenue Code of 1986 is amended by inserting after section 139I the following new section:
139J.
Interest on certain small business loans
(a)
In general
In the case of a bank described in subsection (c), gross income shall not include qualified interest received from a small business during the taxable year.(b)
Qualified interest
The term qualified interest means, with respect to a small business, interest on indebtedness of not more than $5,000,000—(1)secured by land situated in the United States that is used or held by the small business in connection with the active conduct of a farming business, or(2)incurred in the ordinary course of the trade or business of the small business.(c)
Bank described
(1)
In general
A bank is described in this subsection if the bank has less than $50,000,000,000 in assets at the close of the preceding taxable year.(2)
Bank defined
For purposes of this subsection—(A)
In general
The term bank means—(i)any financial institution described in section 581 or 591, and(ii)a corporation which, under the laws of the State of its incorporation, is subject to supervision and examination by the Commissioner of Banking or other officer of such State in charge of the administration of the banking laws of such State.(B)
Holding company
The term bank includes—(i)any bank holding company (within the meaning of section 2(a) of the Bank Holding Company Act of 1956), and(ii)any subsidiary of a financial institution described in section 581 or 591 or of any bank holding company if such subsidiary is predominantly engaged (directly or indirectly) in the active conduct of a banking, financing, or similar business.(d)
Small business
The term small business means a small business concern as defined under section 3 of the Small Business Act (15 U.S.C. 632).(e)
Farming business
The term farming business has the meaning given such term by section 263A(e)(4).(f)
Termination
This section shall not apply to interest received after December 31, 2027.
.(b)
Clerical amendment
The table of sections for part III of subchapter B of chapter 1 of such Code is amended by inserting after the item relating to section 139I the following new item:Sec. 139J. Interest on certain small business loans..(c)
Report to Congress
Not later than December 31, 2024, the Commissioner of Internal Revenue, after consultation with the Federal reserve banks, shall submit to Congress a written report providing the recommendation of the Commissioner regarding whether the exclusion provided under section 139J of the Internal Revenue Code of 1986 (as added by this section) should be extended or should be allowed to terminate and the reasons for such recommendation.(d)
Effective date
The amendments made by this section shall apply to interest received after December 31, 2021, in taxable years ending after such date.