[Congressional Record Volume 155, Number 1 (Tuesday, January 6, 2009)]
[Senate]
[Pages S138-S139]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Ms. SNOWE (for herself, Mr. Kerry, and Ms. Landrieu):
  S. 156. A bill to amend the Internal Revenue Code of 1986 to extend 
enhanced small business expensing and to provide for a 5-year net 
operating loss carryback for losses incurred in 2008 or 2009; to the 
Committee on Finance.
  Ms, SNOWE. Mr. President, I rise today to introduce legislation to 
provide critical tax incentives to our Nation's small businesses, which 
will help them to make vital investments in new plant and equipment and 
weather the recession that is crippling our Nation's economy. The Small 
Business Stimulus Act of 2009 is just three pages, but by extending 
enhanced small business expensing and establishing a 5-year carryback 
for net operating losses, it would pack a powerful punch and assist 
America's 26 million small firms that represent over 99.7 of all 
employers. I am pleased that press reports indicate that President-
elect Obama will include these proposals in his stimulus initiative, 
and I hope that Congress will feature them in any legislation we pass 
in the coming weeks. I thank Senator Kerry for joining me to introduce 
this legislation.
  I have long championed so-called enhanced Section 179 expensing, and 
I was gratified that Congress, as part of the Economic Stimulus Act of 
2008, allowed small businesses in Maine and across the nation to 
expense up to $250,000 of their investments, including

[[Page S139]]

the purchase of essential new equipment. Unfortunately, the incentive 
in that bill was written to last just one year, and so, in 2009, absent 
additional action, small firms will be able to expense just $133,000 of 
new investment. Instead of being able to write off more of their 
equipment purchases immediately, films will have to recover their costs 
over 5, 7, or more years.
  At a time in which we find ourselves in a recession and our nation's 
small businesses are having trouble finding capital to make job-
creating new investments, we simply cannot allow that to occur. 
Accordingly, my bill would allow small businesses to continue expensing 
up to $250,000 of new investment in both 2009 and 2010. The purchase of 
new equipment will undoubtedly contribute to continued productivity 
growth in the business community, which economic experts have 
repeatedly stressed is essential to the long-term vitality of our 
economy.
  Second, my bill recognizes that many businesses that were once 
profitable are experiencing significant losses as a result of current 
economic conditions. As a result, many are curtailing operations, and 
over 2 million Americans lost their jobs in 2008. It is for this reason 
that I am introducing a proposal to extend the net operating loss 
carryback period from 2 to 5 years. In this way, businesses reporting 
losses in 2008 and 2009 may offset those losses against profits from as 
many as 5 years in the past and claim an immediate tax refund. They can 
use that money to help sustain operations and retain employees while 
the economy recovers. This proposal should be particularly beneficial 
to small businesses, which are responsible for creating 75 percent of 
net new jobs. Finally, I would note that although I proposed this very 
change in January 2008 and it cleared the Finance Committee as part of 
last year's stimulus legislation, it was subsequently dropped in 
negotiations with the House of Representatives. I hope that this worthy 
proposal does not suffer the same fate this year.
  Mr. President, I ask unanimous consent that the text of the bill be 
printed in the Record.
  There being no objection, the text of the bill was ordered to be 
printed in the Record, as follows:

                                 S. 156

       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 Stimulus Act 
     of 2009''.

     SEC. 2. EXTENSION OF INCREASED EXPENSING FOR SMALL 
                   BUSINESSES.

       (a) In General.--Paragraph (7) of section 179(b) of the 
     Internal Revenue Code of 1986 is amended--
       (1) by striking ``2008'' and inserting ``2008, 2009, or 
     2010'', and
       (2) by striking ``2008'' in the heading thereof and 
     inserting ``2008, 2009, or 2010''.
       (b) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     2008.

     SEC. 3. 5-YEAR CARRYBACK OF NET OPERATING LOSSES.

       (a) In General.--Subparagraph (H) of section 172(b)(1) of 
     the Internal Revenue Code of 1986 is amended to read as 
     follows:
       ``(H) Carryback for 2008 and 2009 net operating losses.--In 
     the case of a net operating loss for any taxable year ending 
     during 2008 or 2009--
       ``(i) subparagraph (A)(i) shall be applied by substituting 
     `5' for `2',
       ``(ii) subparagraph (E)(ii) shall be applied by 
     substituting `4' for `2', and
       ``(iii) subparagraph (F) shall not apply.''.
       (b) Alternative Tax Net Operating Loss Deduction.--
     Subclause (I) of section 56(d)(1)(A)(ii) of the Internal 
     Revenue Code of 1986 is amended to read as follows:

       ``(I) the amount of such deduction attributable to the sum 
     of carrybacks of net operating losses from taxable years 
     ending during 2001, 2002, 2008, or 2009 and carryovers of net 
     operating losses to taxable years ending during such calendar 
     years, or''.

       (c) Effective Date.--
       (1) In general.--Except as provided in paragraph (2), the 
     amendments made by this section shall apply to net operating 
     losses arising in taxable years ending after December 31, 
     2007.
       (2) Alternative tax net operating loss deduction.--The 
     amendments made by subsection (b) shall apply to taxable 
     years ending after 1997.
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