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March 1, 2010, 12:00 am ET - Amendment SA 3338 proposed by Senator Thune to Amendment SA 3336.
March 2, 2010, 12:00 am ET - Considered by Senate.
March 3, 2010, 12:00 am ET - Considered by Senate.
March 3, 2010, 12:00 am ET - Point of order raised in Senate with respect to amendment SA 3338.
March 3, 2010, 12:00 am ET - Amendment SA 3338 ruled out of order by the chair.
March 3, 2010, 2:50 pm ET - Motion to Waive CBA Thune Amdt No. 3338, As Further Amended

Full Text of this Amendment

SA 3338. Mr. THUNE submitted an amendment intended to be proposed to amendment SA 3336 proposed by Mr. Baucus) to the bill H.R. 4213, to amend the Internal Revenue Code of 1986 to extend certain expiring provisions, and for other purposes; as follows:

At the end, insert the following:
TITLE ----ADDITIONAL BUSINESS TAX RELIEF
Subtitle A--General Provisions
SEC. --01. PERMANENT INCREASE IN LIMITATIONS ON EXPENSING OF CERTAIN DEPRECIABLE BUSINESS ASSETS.
(a) Permanent Increase.--Subsection (b) of section 179 is amended--
(1) by striking "$25,000" and all that follows in paragraph (1) and inserting "$500,000.",
(2) by striking "$200,000" and all that follows in paragraph (2) and inserting "$2,000,000",
(3) by striking "after 2007 and before 2011, the $120,000 and $500,000" in paragraph (5)(A) and inserting "after 2009, the $500,000 and the $2,000,000",
(4) by striking "2006" in paragraph (5)(A)(ii) and inserting "2008", and
(5) by striking paragraph (7).
(b) Permanent Expensing of Computer Software.--Section 179(d)(1)(A)(ii) is amended by striking "and before 2011".
(c) Effective Date.--The amendments made by subsections (b) and (c) shall apply to taxable years beginning after December 31, 2008.
SEC. --02. EXTENSION OF ADDITIONAL FIRST-YEAR DEPRECIATION FOR 50 PERCENT OF THE BASIS OF CERTAIN QUALIFIED PROPERTY.
(a) In General.--Paragraph (2) of section 168(k), as amended by the American Recovery and Reinvestment Tax Act of 2009, is amended--
(1) by striking "January 1, 2011" in subparagraph (A)(iv) and inserting "January 1, 2012", and
(2) by striking "January 1, 2010" each place it appears and inserting "January 1, 2011".
(b) Conforming Amendments.--
(1) The heading for subsection (k) of section 168, as amended by the American Recovery and Reinvestment Tax Act of 2009, is amended by striking "January 1, 2010" and inserting "January 1, 2011".
(2) The heading for clause (ii) of section 168(k)(2)(B), as so amended, is amended by striking "PRE-JANUARY 1, 2010" and inserting "PRE-JANUARY 1, 2011".
(3) Subparagraph (D) of section 168(k)(4) 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, 2011' shall be substituted for `January 1, 2012' in subparagraph (A)(iv) thereof, and
"(v) `January 1, 2010' shall be substituted for `January 1, 2011' each place it appears in subparagraph (A) thereof.".
(4) Subparagraph (B) of section 168(l)(5), as so amended, is amended by striking "January 1, 2010" and inserting "January 1, 2011".
(5) Subparagraph (C) of section 168(n)(2), as so amended, is amended by striking "January 1, 2010" and inserting "January 1, 2011".
(6) Subparagraph (D) of section 1400L(b)(2) is amended by striking "January 1, 2010" and inserting "January 1, 2011".
(7) Subparagraph (B) of section 1400N(d)(3), as so amended, is amended by striking "January 1, 2010" and inserting "January 1, 2011".
(c) Effective Date.--The amendments made by this section shall apply to property placed in service after December 31, 2009.
SEC. --03. INCREASED EXCLUSION AND OTHER MODIFICATIONS APPLICABLE TO QUALIFIED SMALL BUSINESS STOCK.
(a) Increased Exclusion.--
(1) IN GENERAL.--Subsection (a) of section 1202 is amended to read as follows:
"(a) Exclusion.--
"(1) IN GENERAL.--In the case of a taxpayer other than a corporation, gross income shall not include the applicable percentage of any gain from the sale or exchange of qualified small business stock held for more than 5 years.
"(2) APPLICABLE PERCENTAGE.--For purposes of paragraph (1), the applicable percentage is--
"(A) 50 percent, in the case of stock issued after August 10, 1993, and on or before February 18, 2009,
"(B) 75 percent, in the case of stock issued after February 18, 2009, and on or before the date of the enactment of the American Workers, State, and Business Relief Act of 2010, and
"(C) 100 percent, in the case of stock issued after the date of the enactment of the American Workers, State, and Business Relief Act of 2010.
"(3) EMPOWERMENT ZONE BUSINESSES.--
"(A) IN GENERAL.--In the case of qualified small business stock acquired after December 21, 2000, and on or before February 18, 2009, in a corporation which is a qualified business entity (as defined in section 1397C(b)) during substantially all of the taxpayer's holding period for such stock, paragraph (2)(A) shall be applied by substituting `60 percent' for `50 percent'.
"(B) CERTAIN RULES TO APPLY.--Rules similar to the rules of paragraphs (5) and (7) of section 1400B(b) shall apply for purposes of this paragraph.
"(C) GAIN AFTER 2014 NOT QUALIFIED.--Subparagraph (A) shall not apply to gain attributable to periods after December 31, 2014.
"(D) TREATMENT OF DC ZONE.--The District of Columbia Enterprise Zone shall not be treated as an empowerment zone for purposes of this paragraph.".
(2) CONFORMING AMENDMENTS.--
(A) The heading for section 1202 is amended by striking "
PARTIAL".
(B) The item relating to section 1202 in the table of sections for part I of subchapter P of chapter 1 is amended by striking "Partial exclusion" and inserting "Exclusion".
(C) Section 1223(13) is amended by striking "1202(a)(2),".
(b) Repeal of Minimum Tax Preference.--Paragraph (7) of section 57(a) is amended by adding at the end the following: "The preceding sentence shall not apply to stock issued after the date of the enactment of the American Workers, State, and Business Relief Act of 2010.".
(c) Increase in Limitation.--
(1) IN GENERAL.--Subparagraph (A) of section 1202(b)(1) is amended by striking "$10,000,000" and inserting "$15,000,000".
(2) MARRIED INDIVIDUALS.--Subparagraph (A) of section 1202(b)(3) is amended by striking "paragraph (1)(A) shall be applied by substituting `$5,000,000' for `$10,000,000' " and inserting "the amount under paragraph (1)(A) shall be half of the amount otherwise in effect".
(d) Modification of Definition of Qualified Small Business.--Section 1202(d)(1) is amended by striking "$50,000,000" each place it appears and inserting "$75,000,000".
(e) Inflation Adjustments.--Section 1202 is amended by redesignating subsection (k) as subsection (l) and by inserting after subsection (j) the following new subsection:
"(k) Inflation Adjustment.--
"(1) IN GENERAL.--In the case of any taxable year beginning after 2010, the $15,000,000 amount in subsection (b)(1)(A), the $75,000,000 amount in subsection (d)(1)(A), and the $75,000,000 amount in subsection (d)(1)(B) shall each 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, determined by substituting `calendar year 2009' for `calendar year 1992' in subparagraph (B) thereof.
"(2) ROUNDING.--If any amount as adjusted under paragraph (1) is not a multiple of $1,000,000 such amount shall be rounded to the next lowest multiple of $1,000,000.".
(f) Effective Dates.--
(1) IN GENERAL.--The amendments made by subsections (a), (b), and (d) shall apply to stock acquired after the date of the enactment of this Act.
(2) LIMITATION; INFLATION ADJUSTMENT.--The amendments made by subsections (c) and (e) shall apply to taxable years ending after the date of the enactment of this Act.
SEC. --04. DEDUCTION FOR ELIGIBLE SMALL BUSINESS INCOME.
(a) In General.--Paragraph (1) of section 199(a) is amended to read as follows:
"(1) IN GENERAL.--There shall be allowed as a deduction an amount equal to the sum of--
"(A) 9 percent of the lesser of--
"(i) the qualified production activities income of the taxpayer for the taxable year, or
"(ii) taxable income (determined without regard to this section) for the taxable year, and
"(B) in the case of an eligible small business for any taxable year beginning after 2009, 20 percent of the lesser of--
"(i) the eligible small business income of the taxpayer for the taxable year, or
"(ii) taxable income (determined without regard to this section) for the taxable year.".
(b) Eligible Small Business; Eligible Small Business Income.--Section 199 is amended by adding at the end the following new subsection:
"(e) Eligible Small Business; Eligible Small Business Income.--
"(1) ELIGIBLE SMALL BUSINESS.--For purposes of this section, the term `eligible small business' means, with respect to any taxable year--
"(A) a corporation the stock of which is not publicly traded, or
"(B) a partnership,
which meets the gross receipts test of section 448(c) (determined by substituting `$50,000,000' for `$5,000,000' each place it appears in such section) for the taxable year (or, in the case of a sole proprietorship, which would meet such test if such proprietorship were a corporation).
"(2) ELIGIBLE SMALL BUSINESS INCOME.--
"(A) IN GENERAL.--For purposes of this section, the term `eligible small business income' means the excess of--
"(i) the income of the eligible small business which--
"(I) is attributable to the actual conduct of a trade or business,
"(II) is income from sources within the United States (within the meaning of section 861), and
"(III) is not passive income (as defined in section 904(d)(2)(B)), over
"(ii) the sum of--
"(I) the cost of goods sold that are allocable to such income, and
"(II) other expenses, losses, or deductions (other than the deduction allowed under this section), which are properly allocable to such income.
"(B) EXCEPTIONS.--The following shall not be treated as income of an eligible small business for purposes of subparagraph (A):
"(i) Any income which is attributable to any property described in section 1400N(p)(3).
"(ii) Any income which is attributable to the ownership or management of any professional sports team.
"(iii) Any income which is attributable to a trade or business described in subparagraph (B) of section 1202(e)(3).
"(iv) Any income which is attributable to any property with respect to which records are required to be maintained under section 2257 of title 18, United States Code.
"(C) ALLOCATION RULES, ETC.--Rules similar to the rules of paragraphs (2), (3), (4)(D), and (7) of subsection (c) shall apply for purposes of this paragraph.
"(3) SPECIAL RULES.--Except as otherwise provided by the Secretary, rules similar to the rules of subsection (d) shall apply for purposes of this subsection.".
(c) Conforming Amendment.--Section 199(a)(2) is amended by striking "paragraph (1)" and inserting "paragraph (1)(A)".
(d) Effective Date.--The amendments made by this section shall apply to taxable years beginning after December 31, 2009.
SEC. --05. NONAPPLICATION OF CERTAIN LABOR STANDARDS.
Section 1601 of the American Recovery and Reinvestment Tax Act of 2009 is hereby repealed.
Subtitle B--Transfer of Stimulus Funds
SEC. --11. TRANSFER OF STIMULUS FUNDS.
Notwithstanding section 5 of the American Recovery and Reinvestment Act of 2009 (Pub. Law 111-5), from the amounts appropriated or made available and remaining unobligated under such Act, the Director of the Office of Management and Budget shall transfer from time to time to the general fund of the Treasury an amount equal to the sum of the amount of any net reduction in revenues and the amount of any net increase in spending resulting from the enactment of this Act.


(As printed in the Congressional Record for the Senate on Mar 1, 2010.)