THIS SEARCH THIS DOCUMENT GO TO
Next Hit Forward New Bills Search
Prev Hit Back HomePage
Hit List Best Sections Help
Contents Display
GPO's PDF Display
Congressional Record References
Bill Summary & Status
Printer Friendly Display - 21,016 bytes.[Help]
Billno should always have and extension i.e. h1.ih
Small Business Growth and Worker Assistance Act (Introduced in Senate)
S 106 IS
108th CONGRESS
1st Session
S. 106
To amend the Internal Revenue Code of 1986 to increase and modify the exclusion relating to qualified small business stock, to reduce the depreciation recovery period for certain restaurant buildings, and for other purposes.
IN THE SENATE OF THE UNITED STATES
January 9, 2003
Ms. COLLINS introduced the following bill; which was read twice and referred to the Committee on the Finance
A BILL
To amend the Internal Revenue Code of 1986 to increase and modify the exclusion relating to qualified small business stock, to reduce the depreciation recovery period for certain restaurant buildings, and for other purposes.
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 Growth and Worker Assistance Act'.
SEC. 2. INCREASED EXCLUSION AND OTHER MODIFICATIONS APPLICABLE TO QUALIFIED SMALL BUSINESS STOCK.
(1) IN GENERAL- Section 1202(a) of the Internal Revenue Code of 1986 (relating to partial exclusion for gain from certain small business stock) is amended by striking `50 percent' each place it appears and inserting `75 percent'.
(2) EMPOWERMENT ZONE BUSINESSES- Subparagraph (A) of section 1202(a)(2) of the Internal Revenue Code of 1986 (relating to empowerment zone businesses) is amended by striking `60 percent' and inserting `85 percent'.
(b) REDUCTION IN HOLDING PERIOD-
(1) IN GENERAL- Paragraph (1) of section 1202(a) of the Internal Revenue Code of 1986 is amended by striking `5 years' and inserting `3 years'.
(2) CONFORMING AMENDMENTS-
(A) Subparagraph (A) of section 1202(g)(2) of such Code is amended by striking `5 years' and inserting `3 years',
(B) Subparagraph (C) of section 1202(h)(2) of such Code is amended by striking `5-year' and inserting `3-year', and
(C) Subparagraph (A) of section 1202(j)(1) of such Code is amended by striking `5 years' and inserting `3 years'.
(c) REPEAL OF MINIMUM TAX PREFERENCE-
(1) IN GENERAL- Section 57(a) of the Internal Revenue Code of 1986 (relating to items of tax preference) is amended by striking paragraph (7).
(2) TECHNICAL AMENDMENT- Section 53(d)(1)(B)(ii)(II) of such Code is amended by striking `, (5), and (7)' and inserting `and (5)'.
(1) WORKING CAPITAL LIMITATION-
(A) IN GENERAL- Section 1202(e)(6) of the Internal Revenue Code of 1986 (relating to working capital) is amended--
(i) in subparagraph (B), by striking `2 years' and inserting `5 years'; and
(ii) by striking `2 years' in the last sentence and inserting `5 years'.
(B) LIMITATION ON ASSETS TREATED AS USED IN ACTIVE CONDUCT OF BUSINESS- The second sentence of section 1202(e)(6) of such Code is amended by inserting `described in subparagraph (A)' after `of the corporation'.
(2) EXCEPTION FROM REDEMPTION RULES WHERE BUSINESS PURPOSE- Section 1202(c)(3) of such Code (relating to certain purchases by corporation of its own stock) is amended by adding at the end the following:
`(D) WAIVER WHERE BUSINESS PURPOSE- A purchase of stock by the issuing corporation shall be disregarded for purposes of subparagraph (B) if the issuing corporation establishes that there was a business purpose for such purchase and one of the principal purposes of the purchase was not to avoid the limitations of this section.'.
(e) EXCLUDED QUALIFIED TRADE OR BUSINESS- Section 1202(e)(3) of the Internal Revenue Code of 1986 (relating to qualified trade or business) is amended--
(1) by inserting `, and is anticipated to continue to be,' before `the reputation' in subparagraph (A), and
(2) by inserting `but not including the business of raising fish or any business involving biotechnology applications' after `trees' in subparagraph (C).
(f) INCREASE IN CAP ON ELIGIBLE GAIN FOR JOINT RETURNS-
(1) IN GENERAL- Section 1202(b)(1)(A) of the Internal Revenue Code of 1986 (relating to per-issuer limitations on taxpayer's eligible gain) is amended by inserting `($20,000,000 in the case of a joint return)' after `$10,000,000'.
(2) CONFORMING AMENDMENT- Section 1202(b)(3) of such Code is amended by striking subparagraph (A) and redesignating subparagraphs (B) and (C) as subparagraphs (A) and (B), respectively.
(g) DECREASE IN CAPITAL GAINS RATE-
(1) IN GENERAL- Subparagraph (A) of section 1(h)(5) of the Internal Revenue Code of 1986 (relating to 28-percent gain) is amended to read as follows:
`(A) collectibles gain, over'.
(2) CONFORMING AMENDMENTS-
(A) Section 1(h) of such Code is amended by striking paragraph (8).
(B) Paragraph (9) of section 1(h) of such Code is amended by striking `, gain described in paragraph (7)(A)(i), and section 1202 gain' and inserting `and gain described in paragraph (7)(A)(i)'.
(h) INCREASE IN ROLLOVER PERIOD FOR QUALIFIED SMALL BUSINESS STOCK- Subsections (a)(1) and (b)(3) of section 1045 of the Internal Revenue Code of 1986 (relating to rollover of gain from qualified small business
stock to another qualified small business stock) are each amended by striking `60-day' and inserting `180-day'.
(i) EFFECTIVE DATE- The amendments made by this section shall apply to stock issued after the date of enactment of this Act.
SEC. 3. DEPRECIATION RECOVERY PERIOD FOR RESTAURANT BUILDINGS.
(a) 15-YEAR RECOVERY PERIOD- Section 168(e)(3)(E) of the Internal Revenue Code of 1986 (relating to 15-year property) is amended by striking `and' at the end of clause (ii), by striking the period at the end of clause (iii) and inserting `, and', and by adding at the end the following new clause:
`(iv) any section 1250 property which is a retail restaurant facility or an improvement thereto.'.
(b) RETAIL RESTAURANT FACILITY- Section 168(e) of the Internal Revenue Code of 1986 (relating to classification of property) is amended by adding at the end the following new paragraph:
`(6) RETAIL RESTAURANT FACILITY- The term `retail restaurant facility' means any building if more than 50 percent of the building's square footage is devoted to preparation of, and seating for on-premises consumption of, prepared meals.'.
(c) ALTERNATIVE SYSTEM- The table contained in section 168(g)(3)(B) of the Internal Revenue Code of 1986 is amended by inserting after the item relating to subparagraph (E)(iii) the following new item:
20'.
(d) EFFECTIVE DATE- The amendments made by this section shall apply to property placed in service after the date of the enactment of this Act and to all improvements made after such date.
SEC. 4. INCREASE IN SECTION 179 EXPENSING.
(a) IN GENERAL- Section 179(b)(1) of the Internal Revenue Code of 1986 (relating to dollar limitation) is amended to read as follows:
`(1) DOLLAR LIMITATION- The aggregate cost which may be taken into account under subsection (a) for any taxable year shall not exceed $50,000.'.
(b) EFFECTIVE DATE- The amendment made by this section shall apply to taxable years beginning after December 31, 2002.
SEC. 5. EXTENSION OF THE TEMPORARY EXTENDED UNEMPLOYMENT COMPENSATION ACT OF 2002.
(a) IN GENERAL- Section 208 of the Temporary Extended Unemployment Compensation Act of 2002 (Public Law 107-147; 116 Stat. 30) is amended to read as follows:
`SEC. 208. APPLICABILITY.
`(a) IN GENERAL- Except as provided in subsection (b), an agreement entered into under this title shall apply to weeks of unemployment--
`(1) beginning after the date on which such agreement is entered into; and
`(2) ending before July 1, 2003.
`(b) TRANSITION FOR AMOUNT REMAINING IN ACCOUNT-
`(1) IN GENERAL- Subject to paragraphs (2) and (3), in the case of an individual who has amounts remaining in an account established under section 203 as of June 28, 2003, temporary extended unemployment compensation shall continue to be payable to such individual from such amounts for any week beginning after such date for which the individual meets the eligibility requirements of this title.
`(2) NO AUGMENTATION AFTER JUNE 28, 2003- If the account of an individual is exhausted after June 28, 2003, then section 203(c) shall not apply and such account shall not be augmented under such section, regardless of whether such individual's State is in an extended benefit period (as determined under paragraph (2) of such section).
`(3) LIMITATION- No compensation shall be payable by reason of paragraph (1) for any week beginning after September 27, 2003.'.
(b) EFFECTIVE DATE- The amendment made by this section shall take effect as if included in the enactment of the Temporary Extended Unemployment Compensation Act of 2002 (Public Law 107-147; 116 Stat. 21).
SEC. 6. WORKFORCE INVESTMENT.
Section 137 of the Workforce Investment Act of 1998 (29 U.S.C. 2872) is amended to read as follows:
`SEC. 137. AUTHORIZATION OF APPROPRIATIONS.
`(a) YOUTH ACTIVITIES- There is authorized to be appropriated and there is appropriated to carry out the activities described in section 127(a), $1,000,000,000 for fiscal year 2003.
`(b) ADULT EMPLOYMENT AND TRAINING ACTIVITIES- There is authorized to be appropriated and there is appropriated to carry out the activities described in section 132(a)(1), $2,000,000,000 for fiscal year 2003.
`(c) DISLOCATED WORKER EMPLOYMENT AND TRAINING ACTIVITIES- There is authorized to be appropriated and there is appropriated to carry out the activities described in section 132(a)(2), $2,000,000,000 for fiscal year 2003.'.
SEC. 7. TEMPORARY STATE FISCAL RELIEF.
(a) TEMPORARY INCREASE OF MEDICAID FMAP-
(1) PERMITTING MAINTENANCE OF FISCAL YEAR 2002 FMAP FOR LAST 2 CALENDAR QUARTERS OF FISCAL YEAR 2003- Notwithstanding any other provision of law, but subject to paragraph (5), if the FMAP determined without regard to this subsection for a State for fiscal year 2003 is less than the FMAP as so determined for fiscal year 2002, the FMAP for the State for fiscal year 2002 shall be substituted for the State's FMAP for the third and fourth calendar quarters of fiscal year 2003, before the application of this subsection.
(2) PERMITTING MAINTENANCE OF FISCAL YEAR 2003 FMAP FOR FISCAL YEAR 2004- Notwithstanding any other provision of law, but subject to paragraph (5), if the FMAP determined without regard to this subsection for a State for fiscal year 2004 is less than the FMAP as so determined for fiscal year 2003, the FMAP for the State for fiscal year 2003 shall be substituted for the State's FMAP for each calendar quarter of fiscal year 2004, before the application of this subsection.
(3) GENERAL 1.35 PERCENTAGE POINTS INCREASE FOR LAST 2 CALENDAR QUARTERS OF FISCAL YEAR 2003 AND FISCAL YEAR 2004- Notwithstanding any other provision of law, but subject to paragraphs (5) and (6), for each State for the third and fourth calendar quarters of fiscal year 2003 and each calendar quarter of fiscal year 2004, the FMAP (taking into account the application of paragraphs (1) and (2)) shall be increased by 1.35 percentage points.
(4) INCREASE IN CAP ON MEDICAID PAYMENTS TO TERRITORIES- Notwithstanding any other provision of law, but subject to paragraph (6), with respect to the third and fourth calendar quarters of fiscal year 2003 and each calendar quarter of fiscal year 2004, the amounts otherwise determined for Puerto Rico, the Virgin Islands, Guam, the Northern Mariana Islands, and American Samoa under subsections (f) and (g) of section 1108 of the Social Security Act (42 U.S.C. 1308) shall each be increased by an amount equal to 2.7 percent of such amounts.
(5) SCOPE OF APPLICATION- The increases in the FMAP for a State under this subsection shall apply only for purposes of title XIX of the Social Security Act and shall not apply with respect to--
(A) disproportionate share hospital payments described in section 1923 of such Act (42 U.S.C. 1396r-4), or
(B) payments under title IV or XXI of such Act (42 U.S.C. 601 et seq. and 1397aa et seq.).
(A) IN GENERAL- Subject to subparagraph (B), a State is eligible for an increase in its FMAP under paragraph (3) or an increase in a cap amount under paragraph (4) only if the eligibility under its State plan under title XIX of the Social Security Act (including any waiver under such title or under section 1115 of such Act (42 U.S.C. 1315)) is no more restrictive than the eligibility under such plan (or waiver) as in effect on January 1, 2003.
(B) STATE REINSTATEMENT OF ELIGIBILITY PERMITTED- A State that has restricted eligibility under its State plan under title XIX of the Social Security Act (including any waiver under such title or under section 1115 of such Act (42 U.S.C. 1315)) after January 1, 2003, but prior to the date of enactment of this Act is eligible for an increase in its FMAP under paragraph (3) or an increase in a cap amount under paragraph (4) in the first calendar quarter (and subsequent calendar quarters) in which the State has reinstated eligibility that is no more restrictive than the eligibility under such plan (or waiver) as in effect on January 1, 2003.
(C) RULE OF CONSTRUCTION- Nothing in subparagraph (A) or (B) shall be construed as affecting a State's flexibility with respect to benefits offered under the State medicaid program under title XIX of the Social Security Act (42 U.S.C. 1396 et seq.) (including any waiver under such title or under section 1115 of such Act (42 U.S.C. 1315)).
(7) DEFINITIONS- In this subsection:
(A) FMAP- The term `FMAP' means the Federal medical assistance percentage, as defined in section 1905(b) of the Social Security Act (42 U.S.C. 1396d(b)).
(B) STATE- The term `State' has the meaning given such term for purposes of title XIX of the Social Security Act (42 U.S.C. 1396 et seq.).
(8) REPEAL- Effective as of October 1, 2004, this subsection is repealed.
(b) ADDITIONAL TEMPORARY STATE FISCAL RELIEF-
(1) IN GENERAL- Title XX of the Social Security Act (42 U.S.C. 1397-1397f) is amended by adding at the end the following:
`SEC. 2008. ADDITIONAL TEMPORARY GRANTS FOR STATE FISCAL RELIEF.
`(a) IN GENERAL- For the purpose of providing State fiscal relief allotments to States under this section, there are hereby appropriated, out of any funds in the Treasury not otherwise appropriated, $3,000,000,000. Such funds shall be available for obligation by the State through June 30, 2004, and for expenditure by the State through September 30, 2004. This section constitutes budget authority in advance of appropriations Acts and represents the obligation of the Federal Government to provide for the payment to States of amounts provided under this section.
`(b) ALLOTMENT- Funds appropriated under subsection (a) shall be allotted by the Secretary among the States in accordance with the following table:
---------------------------------------------
`State Allotment (in dollars)
---------------------------------------------
Alabama $33,918,100
Alaska $8,488,200
Amer. Samoa $88,600
Arizona $47,601,600
Arkansas $27,941,800
California $314,653,900
Colorado $27,906,200
Connecticut $41,551,200
Delaware $8,306,000
District of Columbia $12,374,400
Florida $128,271,100
Georgia $69,106,600
Guam $135,900
Hawaii $9,914,700
Idaho $10,293,600
Illinois $102,577,900
Indiana $50,659,800
Iowa $27,799,700
Kansas $21,414,300
Kentucky $44,508,400
Louisiana $50,974,000
Maine $17,841,100
Maryland $44,228,800
Massachusetts $100,770,700
Michigan $91,196,800
Minnesota $57,515,400
Mississippi $35,978,500
Missouri $62,189,600
Montana $8,242,000
Nebraska $16,671,600
Nevada $10,979,700
New Hampshire $10,549,400
New Jersey $87,577,300
New Mexico $21,807,600
New York $461,401,900
North Carolina $79,538,300
North Dakota $5,716,900
N. Mariana Islands $50,000
Ohio $116,367,800
Oklahoma $30,941,800
Oregon $34,327,200
Pennsylvania $159,089,700
Puerto Rico $3,991,900
Rhode Island $16,594,100
South Carolina $38,238,000
South Dakota $6,293,700
Tennessee $81,120,000
Texas $159,779,800
Utah $12,551,700
Vermont $8,003,800
Virgin Islands $128,800
Virginia $44,288,300
Washington $66,662,200
West Virginia $19,884,400
Wisconsin $47,218,900
Wyoming $3,776,400
Total $3,000,000,000
---------------------------------------------
`(c) USE OF FUNDS- Funds appropriated under this section may be used by a State for services directed at the goals set forth in section 2001, subject to the requirements of this title.
`(d) PAYMENT TO STATES- Not later than 30 days after amounts are appropriated under subsection (a), in addition to any payment made under section 2002 or 2007, the Secretary shall make a lump sum payment to a State of the total amount of the allotment for the State as specified in subsection (b).
`(e) DEFINITION- For purposes of this section, the term `State' means the 50 States, the District of Columbia, and the territories contained in the list under subsection (b).'.
(2) REPEAL- Effective as of January 1, 2005, section 2008 of the Social Security Act, as added by paragraph (1), is repealed.
THIS SEARCH THIS DOCUMENT GO TO
Next Hit Forward New Bills Search
Prev Hit Back HomePage
Hit List Best Sections Help
Contents Display