,i  #aacth ,,congress  #ast ,session    
,h4 ,r4 #acbc  ,,in ,,the ,,house ,,of  
,,representatives  ,march #ba1 #bjac    
,ms4 ,sewell of ,alabama 7for herself1  
,mr4 ,cicilline1 and ,ms4 ,brown of     
,florida7 introduced the following bill2
 which was referred to the ,committee on
 ,ways and ,means  ,a ,,bill  ,to amend 
the ,internal ,revenue ,code of #aihf to
 establish tax-preferred ,small         
,business ,start-up ,savings ,accounts4 
#a4 ,short title ,this ,act may be cited
 as the ,small ,business ,start-up      
,savings ,accounts ,act of #bjac4  #b4  
,establishment of ,small ,business      
,start-up ,savings ,accounts  7a7 ,in   
general ,subpart ,a of part ,i of       
subchapter ,d of chapter #a of the      
,internal ,revenue ,code of #aihf is    
amended by inserting after section      
#djh;,a the following new section3      
#djh;,b4 ,small ,business ,start-up     
,savings ,accounts  7a7 ,general rule   
,except as provided in this section1 a  
,small ,business ,start-up ,savings     

,account shall be treated for purposes  
of this title in the same manner as an  
individual retirement plan4  7b7 ,small 
business start-,up savings account ,for 
purposes of this title1 the term ,small 
,business ,start-up ,savings ,account   
means an individual retirement plan     
which is designated 7in such manner as  
the ,secretary may prescribe7 at the    
time of establishment of the plan as a  
,small ,business ,start-up ,savings     
,account4  7c7 ,treatment of            
contributions  7#a7 ,no deduction       
allowed ,no deduction shall be allowed  
under section #bai for a contribution to
 a ,small ,business ,start-up ,savings  
,account4  7#b7 ,contribution limit     
7,a7 ,in general ,the aggregate amount  
of contributions for any taxable year to
 all ,small ,business ,start-up ,savings
 ,accounts maintained for the benefit of
 an individual shall not exceed #aj1jjj4
  7,b7 ,aggregate limitation ,the       
aggregate of the amount contributions   
for all taxable years with respect to   

all ,small ,business ,start-up ,savings 
,accounts maintained for the benefit of 
an individual shall not exceed #aej1jjj4
  7,c7 ,cost of living adjustment  7i7  
,in general ,in the case of a taxable   
year beginning after #bjad1 the #aj1jjj 
amount in subparagraph 7,a7 shall be    
increased by an amount equal to--  7,i7 
such dollar amount1 multiplied by       
7,,ii7 the cost-of-living adjustment    
determined under section #a7;f77#c7 for 
the calendar year in which the taxable  
year begins1 determined by substituting 
calendar year #bjac for calendar year   
#aiib in subparagraph 7,b7 thereof4     
7ii7 ,rounding ,if any amount as        
adjusted under clause 7i7 is not a      
multiple of #ejj1 such amount shall be  
rounded to the next lowest multiple of  
#ejj4  7#c7 ,contributions permitted    
after age #gj ,contributions to a ,small
 ,business ,start-up ,savings ,account  
may be made even after the individual   
for whom the account is maintained has  
attained age #gj4  7#d7 ,rollovers from 

retirement plans not allowed ,a taxpayer
 shall not be allowed to make a         
qualified rollover contribution to a    
,small ,business ,start-up ,savings     
,account from any eligible retirement   
plan 7as defined in section             
#djb7;c77#h77;,b771 except as may be    
provided by the ,secretary in the case  
of a rollover from another ,small       
,business ,start-up ,savings ,account4  
7#e7 ,income based on modified adjusted 
gross income  7,a7 ,in general ,in the  
case of a taxable year in which the     
taxpayer's adjusted gross income exceeds
 #aej1jjj 7#cjj1jjj in the case of a    
joint return71 the dollar amount in     
effect for such taxable year under      
subsection 7c77#b7 shall be reduced 7but
 not below zero7 by the amount          
determined under subparagraph 7,b74     
7,b7 ,amount of reduction ,the amount   
determined under this subparagraph shall
 be the amount which bears the same     
ratio to such limitation as--  7i7 the  
excess of--  7,i7 the taxpayer's        

adjusted gross income for such taxable  
year1 over  7,,ii7 #aej1jjj 7#cjj1jjj in
 the case of a joint return71 bears to  
7ii7 #be1jjj4  7,c7 ,modified adjusted  
gross income ,the term modified adjusted
 gross income means the adjusted gross  
income of the taxpayer for the taxable  
year increased by any amount excluded   
from gross income under section #iaa1   
#ica1 or #icc4  7d7 ,treatment of       
distributions  7#a7 ,tax treatment  7,a7
 ,exclusion of qualified distributions  
,any qualified distribution from a      
,small ,business ,start-up ,savings     
,account shall not be includible in     
gross income4  7,b7 ,inclusion of other 
distributions ,distributions from a     
,small ,business ,start-up ,savings     
,account which is not a qualified       
distribution shall be included in gross 
income and1 for purposes of section #a1 
treated as a net capital gain4  7#b7    
,qualified distribution ,for purposes of
 this subsection1 the term qualified    
distribution means1 with respect to any 

taxable year1 any payment or            
distribution from a ,small ,business    
,start-up ,savings ,account--  7,a7 to  
the extent the amount of such payment or
 distribution does not exceed the sum   
of--  7i7 the aggregate amounts paid or 
incurred by the taxpayer for such       
taxable year with respect to a trade or 
business for the purchase of equipment  
or facilities1 marketing1 training1     
incorporation1 and accounting fees1 and 
7ii7 the aggregate capital contributions
 of the taxpayer with respect to a trade
 or business for the taxable year 7but  
only to the extent such amounts are used
 in such trade or business for purposes 
described in clause 7i771 and  7,b7     
which1 in the case of a payment or      
distribution subsequent to the first    
payment or distribution from such       
account 7or any predecessor to such     
account7--  7i7 is made not later than  
the close of the #eth taxable year      
beginning after the date of such first  
payment or distribution1 and  7ii7 is   

made with respect to the same trade or  
business with respect to which such     
first payment or distribution was made4 
7#c7 ,treatment after death of account  
beneficiary ,if1 by reason of the death 
of the account beneficiary1 any person  
acquires the account beneficiary's      
interest in a ,small ,business ,start-up
 ,savings ,account--  7,a7 such account 
shall cease to be a ,small ,business    
,start-up ,savings ,account as of the   
date of death1 and  7,b7 an amount equal
 to the fair market value of the assets 
in such account on such date shall be   
includible--  7i7 in the case of a      
person who is not the estate of such    
beneficiary1 in such person's gross     
income for the taxable year which       
includes such date1 or  7ii7 in the case
 of a person who is the estate of such  
beneficiary1 in such beneficiary's gross
 income for the last taxable year of    
such beneficiary4  7,c7 ,special rules  
7i7 ,reduction of inclusion for predeath
 expenses ,the amount includible in     

gross income under subparagraph 7,b7    
shall be reduced by the amounts         
described in paragraph 7#b7 which were  
incurred by the decedent before the date
 of the decedent's death and paid by    
such person within #a year after such   
date4  7ii7 ,deduction for estate taxes 
,an appropriate deduction shall be      
allowed under section #fia7;c7 to any   
person 7other than the decedent7 with   
respect to amounts included in gross    
income under clause 7i7 by such person4 
7#d7 ,mandatory distribution rules not  
to apply ,section #dja7;a77#i77;,a7 and 
the incidental death benefit            
requirements of section #dja7;a7 shall  
not apply to any ,small ,business       
,start-up ,savings ,account4  4  7b7    
,excess contributions ,section #digc of 
the ,internal ,revenue ,code of #aihf is
 amended by adding at the end the       
following new subsection3  7h7 ,excess  
contributions to small business         
start-,up savings accounts ,for purposes
 of this section1 in the case of        

contributions to all ,small ,business   
,start-up ,savings ,accounts 7within the
 meaning of section #djh;,b7b77         
maintained for the benefit of an        
individual1 the term excess             
contributions means the sum of--  7#a7  
the excess 7if any7 of--  7,a7 the      
amount contributed to such accounts for 
the taxable year1 over  7,b7 the amount 
allowable as a contribution under       
section #djh;,b7c77#b77;,a7 for such    
taxable year1 and  7#b7 the amount      
determined under this subsection for the
 preceding taxable year1 reduced by the 
sum of--  7,a7 the distributions out of 
the accounts for the taxable year1 and  
7,b7 the excess 7if any7 of--  7i7 the  
maximum amount allowable as a           
contribution under section              
#djh;,b7c77#b77;,a7 for such taxable    
year1 over  7ii7 the amount contributed 
to such accounts for such taxable year1 
and  7#c7 the excess 7if any7 of--  7,a7
 the excess 7if any7 of--  7i7 the      
aggregate amounts contributed to such   

accounts for all taxable years1 over    
7ii7 the aggregate amount allowable as  
contributions under section             
#djh;,b7c77#b77;,b7 for all taxable     
years1 over  7,b7 the amount determined 
under this paragraph for all preceding  
taxable years4  4  7c7 ,conforming      
amendment ,the table of sections for    
subpart ,a of part ,i of subchapter ,d  
of chapter #a of the ,internal ,revenue 
,code of #aihf is amended by inserting  
after the item relating to section      
#djh;,a the following new item3  ,sec4  
#djh;,b4 ,small ,business ,start-up     
,savings ,accounts4  4  7d7 ,effective  
date ,the amendments made by this       
section shall apply to taxable years    
beginning after ,december #ca1 #bjac4