[Congressional Record Volume 158, Number 49 (Monday, March 26, 2012)]
[Senate]
[Pages S2032-S2033]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
By Mr. REID:
S. 2237. A bill to provide a temporary income tax credit for
increased payroll and extend bonus depreciation for an additional year,
and for other purposes; read the first time.
Mr. REID. 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. 2237
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 Jobs and Tax
Relief Act''.
SEC. 2. TEMPORARY TAX CREDIT FOR INCREASED PAYROLL.
(a) In General.--In the case of a qualified employer who
elects the application of this section, there shall be
allowed as a credit against the tax imposed by chapter 1 of
the Internal Revenue Code of 1986 for the taxable year which
includes December 31, 2012, an amount equal to 10 percent of
the excess (if any) of--
(1) the sum of the wages and compensation paid by such
qualified employer for qualified services during calendar
year 2012, over
(2) the sum of such wages and compensation paid during
calendar year 2011.
(b) Limitation.--The amount of the excess taken into
account under subsection (a) with respect to any qualified
employer shall not exceed $5,000,000.
(c) Wages and Compensation.--For purposes of this section--
(1) Wages.--The term ``wages'' has the meaning given such
term under section 3121 of the Internal Revenue Code of 1986
for purposes of the tax imposed by section 3111(a) of such
Code.
(2) Compensation.--The term ``compensation'' has the
meaning given such term under section 3231 of such Code for
purposes of the portion of the tax imposed by section 3221(a)
of such Code that corresponds to the tax imposed by section
3111(a) of such Code.
(3) Application of contribution and benefit base to
calendar year 2011.--For purposes of determining wages and
compensation under subsection (a)(2), the contribution and
benefit base as determined under section 230 of the Social
Security Act shall be such amount as in effect for calendar
year 2012.
(4) Special rule when no wages or compensation in 2011.--In
any case in which the sum of the wages and compensation paid
by a qualified employer for qualified services during
calendar year 2011 is zero, then the amount taken into
account under subsection (a)(2) shall be 80 percent of the
amount taken into account under subsection (a)(1).
(5) Coordination with other employment credits.--The amount
of the excess taken into account under subsection (a) shall
be reduced by the sum of all other Federal tax credits
determined with respect to wages or compensation paid in
calendar year 2012.
(d) Other Definitions.--
(1) Qualified employer.--For purposes of this section--
(A) In general.--The term ``qualified employer'' has the
meaning given such term under section 3111(d)(2) of the
Internal Revenue Code of 1986, determined by substituting
``section 101 of the Higher Education Act of 1965'' for
``section 101(b) of the Higher Education Act of 1965'' in
subparagraph (B) thereof.
(B) Aggregation rules.--Rules similar to the rules of
sections 414(b), 414(c), 414(m), and 414(o) of such Code
shall apply to determine when multiple entities shall be
treated as a single employer, and rules with respect to
predecessor and successor employers may be applied, in such
manner as may be prescribed by the Secretary of the Treasury
or the Secretary's designee (in this section referred to as
the ``Secretary'').
(2) Qualified services.--The term ``qualified services''
means services performed by an individual who is not
described in section 51(i)(1) of such Code (applied by
substituting ``qualified employer'' for ``taxpayer'' each
place it appears)--
(A) in a trade or business of the qualified employer, or
(B) in the case of a qualified employer exempt from tax
under section 501(a) of such Code, in furtherance of the
activities related to the purpose or function constituting
the basis of the employer's exemption under section 501 of
such Code.
(e) Application of Certain Rules.--Rules similar to the
rules of sections 280C(a) and 6501(m) of the Internal Revenue
Code of 1986 shall apply with respect to the credit
determined under this section.
(f) Treatment of Credit.--For purposes of the Internal
Revenue Code of 1986--
(1) Taxable employers.--
(A) In general.--The credit allowed under subsection (a)
with respect to qualified services described in subsection
(d)(2)(A) for any taxable year shall be added to the current
year business credit under section 38(b) of such Code for
such taxable year and shall be treated as a credit allowed
under subpart D of part IV of subchapter A of chapter 1 of
such Code.
(B) Limitation on carrybacks.--No portion of the unused
business credit under section 38 of such Code for any taxable
year which is attributable to an increase in the current year
business credit by reason of subparagraph (A) may be carried
to a taxable year beginning before the date of the enactment
of this section.
(2) Tax-exempt employers.--
(A) In general.--The credit allowed under subsection (a)
with respect to qualified services described in subsection
(d)(2)(B) for any taxable year--
(i) shall be treated as a credit allowed under subpart C of
part IV of subchapter A of chapter 1 of such Code, and
(ii) shall be added to the credits described in
subparagraph (A) of section 6211(b)(4) of such Code.
(B) Conforming amendment.--Section 1324(b)(2) of title 31,
United States Code, is amended by inserting ``or due under
section 2 of the Small Business Jobs and Tax Relief Act''
after ``the Housing Assistance Tax Act of 2008''.
(g) Treatment of Possessions.--
(1) Payments to possessions.--
(A) Mirror code possessions.--The Secretary shall pay to
each possession of the United States with a mirror code tax
system amounts equal to the loss to that possession by reason
of the application of subsections (a) through (f). Such
amounts shall be determined by the Secretary based on
information provided by the government of the respective
possession of the United States.
(B) Other possessions.--The Secretary shall pay to each
possession of the United States which does not have a mirror
code tax system the amount estimated by the Secretary as
being equal to the loss to that possession that would have
occurred by reason of the application of subsections (a)
through (f) if a mirror code tax system had been in effect in
such possession. The preceding sentence shall not apply with
respect to any possession of the United States unless such
possession establishes to the satisfaction of the Secretary
that the possession has implemented (or, at the discretion of
the Secretary, will implement) an income tax benefit which is
substantially equivalent to the income tax credit allowed
under such subsections.
(2) Coordination with credit allowed against united states
income taxes.--No increase in the credit determined under
section 38(b) of the Internal Revenue Code of 1986 against
United States income taxes for any taxable year determined by
reason of subsection (f)(1)(A) shall be taken into account
with respect to any person--
(A) to whom a credit is allowed against taxes imposed by
the possession by reason of this section for such taxable
year, or
(B) who is eligible for a payment under a plan described in
paragraph (1)(B) with respect to such taxable year.
(3) Definitions and special rules.--
(A) Possession of the united states.--For purposes of this
subsection, the term ``possession of the United States''
includes American Samoa, Guam, the Commonwealth of the
Northern Mariana Islands, the Commonwealth of Puerto Rico,
and the United States Virgin Islands.
(B) Mirror code tax system.--For purposes of this
subsection, the term ``mirror code tax system'' means, with
respect to any possession of the United States, the income
tax system of such possession if the income tax liability of
the residents of such possession under such system is
determined by reference to the income tax laws of the United
States as if such possession were the United States.
(C) Treatment of payments.--For purposes of section
1324(b)(2) of title 31, United States Code, the payments
under this subsection shall be treated in the same manner as
a refund due from credit provisions described in such
section.
[[Page S2033]]
(h) Regulations.--The Secretary shall prescribe such
regulations or guidance as are necessary to carry out the
provisions of this section.
SEC. 3. EXTENSION OF ALLOWANCE FOR BONUS DEPRECIATION FOR
CERTAIN BUSINESS ASSETS.
(a) Extension of 100 Percent Bonus Depreciation.--
(1) In general.--Paragraph (5) of section 168(k) of the
Internal Revenue Code of 1986 is amended--
(A) by striking ``January 1, 2012'' each place it appears
and inserting ``January 1, 2013'', and
(B) by striking ``January 1, 2013'' and inserting ``January
1, 2014''.
(2) Conforming amendments.--
(A) The heading for paragraph (5) of section 168(k) of such
Code is amended by striking ``pre-2012 periods'' and
inserting ``pre-2013 periods''.
(B) Clause (ii) of section 460(c)(6)(B) of such Code is
amended by striking ``January 1, 2011 (January 1, 2012'' and
inserting ``January 1, 2013 (January 1, 2014''.
(3) Effective dates.--
(A) In general.--Except as provided in subparagraph (B),
the amendments made by this section shall apply to property
placed in service after December 31, 2011.
(B) Conforming amendment.--The amendment made by paragraph
(2)(B) shall apply to property placed in service after
December 31, 2010.
(b) Expansion of Election To Accelerate AMT Credits in Lieu
of Bonus Depreciation.--
(1) In general.--Paragraph (4) of section 168(k) of the
Internal Revenue Code of 1986 is amended to read as follows:
``(4) Election to accelerate amt credits in lieu of bonus
depreciation.--
``(A) In general.--If a corporation elects to have this
paragraph apply for any taxable year--
``(i) paragraph (1) shall not apply to any eligible
qualified property placed in service by the taxpayer in such
taxable year,
``(ii) the applicable depreciation method used under this
section with respect to such property shall be the straight
line method, and
``(iii) the limitation imposed by section 53(c) for such
taxable year shall be increased by the bonus depreciation
amount which is determined for such taxable year under
subparagraph (B).
``(B) Bonus depreciation amount.--For purposes of this
paragraph--
``(i) In general.--The bonus depreciation amount for any
taxable year is an amount equal to 20 percent of the excess
(if any) of--
``(I) the aggregate amount of depreciation which would be
allowed under this section for eligible qualified property
placed in service by the taxpayer during such taxable year if
paragraph (1) applied to all such property, over
``(II) the aggregate amount of depreciation which would be
allowed under this section for eligible qualified property
placed in service by the taxpayer during such taxable year if
paragraph (1) did not apply to any such property.
The aggregate amounts determined under subclauses (I) and
(II) shall be determined without regard to any election made
under subsection (b)(2)(D), (b)(3)(D), or (g)(7) and without
regard to subparagraph (A)(ii).
``(ii) Limitation.--The bonus depreciation amount for any
taxable year shall not exceed the lesser of--
``(I) 50 percent of the minimum tax credit under section
53(b) for the first taxable year ending after December 31,
2011, reduced (but not below zero) by the sum of the bonus
depreciation amounts for all taxable years ending after such
date for which an election under this paragraph was made
which precede the taxable year for which the determination is
made (other than amounts determined with respect to property
placed in service by the taxpayer on or before such date), or
``(II) the minimum tax credit under section 53(b) for such
taxable year determined by taking into account only the
adjusted minimum tax for taxable years ending before January
1, 2012 (determined by treating credits as allowed on a
first-in, first-out basis).
``(iii) Aggregation rule.--All corporations which are
treated as a single employer under section 52(a) shall be
treated--
``(I) as 1 taxpayer for purposes of this paragraph, and
``(II) as having elected the application of this paragraph
if any such corporation so elects.
``(C) Eligible qualified property.--For purposes of this
paragraph, the term `eligible qualified property' means
qualified property under paragraph (2), except that in
applying paragraph (2) for purposes of this paragraph--
``(i) `March 31, 2008' shall be substituted for `December
31, 2007' each place it appears in subparagraph (A) and
clauses (i) and (ii) of subparagraph (E) thereof,
``(ii) `April 1, 2008' shall be substituted for `January 1,
2008' in subparagraph (A)(iii)(I) thereof, and
``(iii) only adjusted basis attributable to manufacture,
construction, or production--
``(I) after March 31, 2008, and before January 1, 2010, and
``(II) after December 31, 2010, and before January 1, 2013,
shall be taken into account under subparagraph (B)(ii)
thereof.
``(D) Credit refundable.--For purposes of section 6401(b),
the aggregate increase in the credits allowable under part IV
of subchapter A for any taxable year resulting from the
application of this paragraph shall be treated as allowed
under subpart C of such part (and not any other subpart).
``(E) Other rules.--
``(i) Election.--Any election under this paragraph may be
revoked only with the consent of the Secretary.
``(ii) Partnerships with electing partners.--In the case of
a corporation making an election under subparagraph (A) and
which is a partner in a partnership, for purposes of
determining such corporation's distributive share of
partnership items under section 702--
``(I) paragraph (1) shall not apply to any eligible
qualified property, and
``(II) the applicable depreciation method used under this
section with respect to such property shall be the straight
line method.
``(iii) Certain partnerships.--In the case of a partnership
in which more than 50 percent of the capital and profits
interests are owned (directly or indirectly) at all times
during the taxable year by one corporation (or by
corporations treated as 1 taxpayer under subparagraph
(B)(iii)), for purposes of subparagraph (B), each partner
shall take into account its distributive share of the amounts
determined by the partnership under subclauses (I) and (II)
of clause (i) of such subparagraph for the taxable year of
the partnership ending with or within the taxable year of the
partner. The preceding sentence shall apply only to amounts
determined with respect to property placed in service after
December 31, 2011.
``(iv) Special rule for passenger aircraft.--In the case of
any passenger aircraft, the written binding contract
limitation under paragraph (2)(A)(iii)(I) shall not apply for
purposes of subparagraphs (B)(i)(I) and (C).''.
(2) Effective date.--The amendment made by this subsection
shall apply to taxable years ending after December 31, 2011.
(3) Transitional rule.--In the case of a taxable year
beginning before January 1, 2012, and ending after December
31, 2011, the bonus depreciation amount determined under
paragraph (4) of section 168(k) of the Internal Revenue Code
of 1986 for such year shall be the sum of--
(A) such amount determined under such paragraph as in
effect on the date before the date of enactment of this Act--
(i) taking into account only property placed in service
before January 1, 2012, and
(ii) multiplying the limitation under subparagraph (C)(ii)
of such paragraph (as so in effect) by a fraction the
numerator of which is the number of days in the taxable year
before January 1, 2012, and the denominator of which is the
number of days in the taxable year, and
(B) such amount determined under such paragraph as amended
by this Act--
(i) taking into account only property placed in service
after December 31, 2011, and
(ii) multiplying the limitation under subparagraph (B)(ii)
of such paragraph (as so in effect) by a fraction the
numerator of which is the number of days in the taxable year
after December 31, 2011, and the denominator of which is the
number of days in the taxable year.
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