,i  #aac? ,,congress  #a/ ,session  ,h4 
,r4 #beeh  ,,9 ,,! ,,h\se ,,(           
,,repres5tatives  ,june #bg1 #bjac ,mr4 
,maffei introduc$ ! foll[+ bill2 :i* 0  
ref]r$ to ! ,committee on ,ways & ,means
  ,a ,,bill  ,to am5d ! ,int]nal ,rev5ue
 ,code ( #aihf to provide = ! tax       
treatm5t ( small bus9ess />t-up sav+s   
acc\nts4  #a4 ,%ort title ,?is ,act may 
be cit$ z ! ,inc5tivize ,gr[? ,n[ ,9    
,tomorr['s ,entrepr5eurs ,act ( #bjac4  
#b4 ,small ,bus9ess ,/>t-,up ,sav+s     
,acc\nts  7a7 ,9 g5]al ,sub*apt] ,f (   
*apt] #a ( ! ,int]nal ,rev5ue ,code (   
#aihf is am5d$ by add+ at ! end ! foll[+
 new "p3  ,,ix ,small ,bus9ess ,/>t-,up 
,sav+s ,acc\nts  ,sec4 #ecj;,a4 ,small  
,bus9ess ,/>t-up ,sav+s ,acc\nts4       
#ecj;,a4 ,small ,bus9ess ,/>t-up ,sav+s 
,acc\nts  7a7 ,g5]al ,rule ,a small     
bus9ess />t-up sav+s acc\nt %all be     
exempt f taxation "u ?is subtitle4      
,not)/&+ ! prec$+ s5t5ce1 ! small       
bus9ess />t-up sav+s acc\nt %all be     
subject to ! taxes impos$ by section    

#eaa 7relat+ to imposition ( tax on     
unrelat$ bus9ess income ( *>itable      
organizations74  7b7 ,small bus9ess     
/>t-,up sav+s acc\nt ,! t]m small       
bus9ess />t-up sav+s acc\nt means a tru/
 creat$ or organiz$ 9 ! ,unit$ ,/ates   
exclusively = ! purpose ( mak+ qualifi$ 
/>t-up exp5ditures ( ! individual :o is 
! designat$ b5efici>y ( ! tru/ 7&       
designat$ z a small bus9ess />t-up sav+s
 acc\nt at ! "t creat$ or organiz$71 b  
only if ! writt5 gov]n+ in/rum5t creat+ 
! tru/ meets ! foll[+ requirem5ts3  7#a7
 ,except 9 ! case ( a rollov]           
contribution describ$ 9 subsection      
7d77#d71 no contribution w be accept$   
unless x is 9 ca%1 & contributions w n  
be accept$ if su* contribution w\ld     
result 9 aggregate contributions = !    
taxable ye> n exce$+ ! less] (--  7,a7  
#aj1jjj1 or  7,b7 an am\nt equal to !   
comp5sation 7z def9$ 9 section          
#bai7;f77#a77 includible 9 !            
individual's gross income = su* taxable 
ye>4  7#b7 ,! tru/ee is a bank 7z def9$ 

9 section #djh7n77 or su* o!r p]son :o  
demon/rates to ! satisfaction ( !       
,secret>y t ! mann] 9 :i* su* o!r p]son 
w adm9i/] ! tru/ w be consi/5t ) !      
requirem5ts ( ?is section4  7#c7 ,no "p 
( ! tru/ funds w be inve/$ 9 life       
insurance contracts4  7#d7 ,! assets ( !
 tru/ w n be comm+l$ ) o!r prop]ty      
except 9 a common tru/ fund or common   
inve/m5t fund4  7c7 ,qualifi$ />t-,up   
exp5ditures ,= purposes ( ?is section-- 
7#a7 ,9 g5]al ,! t]m qualifi$ />t-up    
exp5ditures has ! mean+ giv5 su* t]m by 
section #aie4  7#b7 ,special rule =     
corporation or p>tn]%ip int]e/s ,su* t]m
 includes ! taxpay]'s allocable %>e (   
qualifi$ />t-up exp5ditures ( an entity 
9 :i* ! taxpay] directly holds /ock or a
 capital or pr(its int]e/4  7#c7        
,exception ,su* t]m %all n apply to any 
exp5ditures paid or incurr$ 9 a taxable 
ye> 9 connection ) a trade or bus9ess if
 !re is any day dur+ ! taxable ye> on   
:i* ! numb] ( full-"t employees ( !     
trade or bus9ess exce$s #ej4  7d7 ,tax  

treatm5t ( di/ributions  7#a7 ,9 g5]al  
,any di/ribution %all be includible 9 ! 
gross income ( ! di/ributee 9 ! mann] z 
provid$ 9 section #gb4  7#b7            
,di/ributions = qualifi$ />t-up         
exp5ditures  7,a7 ,9 g5]al ,no am\nt    
%all be includible 9 gross income "u    
p>agraph 7#a7 if ! qualifi$ />t-up      
exp5ditures ( ! individual dur+ !       
taxable ye> are n less ?an ! aggregate  
di/ributions dur+ ! taxable ye>4  7,b7  
,di/ributions 9 excess ( exp5ses ,if su*
 aggregate di/ributions exce$ su*       
exp5ses dur+ ! taxable ye>1 ! am\nt     
o!rwise includible 9 gross income "u    
p>agraph 7#a7 %all be r$uc$ by ! am\nt  
:i* be>s ! same ratio to ! am\nt :i*    
w\ld be includible 9 gross income "u    
p>agraph 7#a7 7)\t reg>d to ?is         
subp>agraph7 z ! qualifi$ />t-up        
exp5ditures be> to su* aggregate        
di/ributions4  7,c7 ,disall[ance (      
exclud$ am\nts z d$uction1 cr$it1 or    
exclusion ,no d$uction1 cr$it1 or       
exclusion %all be all[$ to ! taxpay] "u 

any o!r section ( ?is *apt] = any       
qualifi$ />t-up exp5diture to ! ext5t   
tak5 into acc\nt 9 det]m9+ ! am\nt ( !  
exclusion "u ?is p>agraph4  7#c7 ,excess
 contributions return$ be=e due date (  
return  7,a7 ,9 g5]al ,if any excess    
contribution is contribut$ = a taxable  
ye> to any small bus9ess />t-up sav+s   
acc\nt ( an individual1 p>agraph 7#a7   
%all n apply to di/ributions f ! small  
bus9ess />t-up sav+s acc\nts ( su*      
individual 7to ! ext5t su* di/ributions 
d n exce$ ! aggregate excess            
contributions to all su* acc\nts ( su*  
individual = su* ye>7 if--  7i7 su*     
di/ribution is receiv$ by ! individual  
on or be=e ! la/ day prescrib$ by law   
7includ+ ext5sions ( "t7 = fil+ su*     
individual's return = su* taxable ye>1 &
  7ii7 su* di/ribution is accompani$ by 
! am\nt ( net income attributable to su*
 excess contribution4  7,b7 ,excess     
contribution ,= purposes ( subp>agraph  
7,a71 ! t]m excess contribution means   
any contribution 7o!r ?an a rollov]     

contribution describ$ 9 p>agraph 7#d77  
:i* :5 add$ to all previ\s contributions
 = ! taxable ye> exce$s ! am\nt all[able
 z a contribution "u subsection 7b77#a74
  7#d7 ,rollov] contribution ,p>agraph  
7#a7 %all n apply to any am\nt paid or  
di/ribut$ f a small bus9ess />t-up sav+s
 acc\nt to ! acc\nt b5efici>y to ! ext5t
 ! am\nt receiv$ is paid into a small   
bus9ess />t-up sav+s acc\nt = ! b5efit (
 su* b5efici>y n lat] ?an ! #fj? day    
aft] ! day on :i* ! b5efici>y receives !
 paym5t or di/ribution4 ,= purposes (   
?is p>agraph1 rules simil> to ! rules ( 
section #djh7;d77#c77;,d7 %all apply4   
7#e7 ,transf] ( acc\nt incid5t to       
divorce ,! transf] ( an individual's    
int]e/ 9 a small bus9ess />t-up sav+s   
acc\nt to an individual's sp\se or =m]  
sp\se "u a divorce or sep>ation in/rum5t
 describ$ 9 subp>agraph 7,a7 ( section  
#ga7;b77#b7 %all n be consid]$ a taxable
 transf] made by su* individual not)/&+ 
any o!r provision ( ?is subtitle1 & su* 
int]e/ %all1 aft] su* transf]1 be treat$

 z a small bus9ess />t-up sav+s acc\nt )
 respect to :i* su* sp\se is ! acc\nt   
b5efici>y4  7#f7 ,treatm5t aft] dea? (  
acc\nt b5efici>y  7,a7 ,treatm5t if     
designat$ b5efici>y is sp\se ,if !      
acc\nt b5efici>y's surviv+ sp\se        
acquires su* b5efici>y's int]e/ 9 a     
small bus9ess />t-up sav+s acc\nt by    
reason ( be+ ! designat$ b5efici>y ( su*
 acc\nt at ! dea? ( ! acc\nt b5efici>y1 
su* acc\nt %all be treat$ z if ! sp\se 7
 ! acc\nt b5efici>y4  7,b7 ,o!r cases   
7i7 ,9 g5]al ,if1 by reason ( ! dea? ( !
 acc\nt b5efici>y1 any p]son acquires ! 
acc\nt b5efici>y's int]e/ 9 a small     
bus9ess />t-up sav+s acc\nt 9 a case to 
:i* subp>agraph 7,a7 does n apply--     
7,i7 su* acc\nt %all cease to be a small
 bus9ess />t-up sav+s acc\nt z ( ! date 
( dea?1 &  7,,ii7 an am\nt equal to !   
fair m>ket value ( ! assets 9 su* acc\nt
 on su* date %all be includible if su*  
p]son is n ! e/ate ( su* b5efici>y1 9   
su* p]son's gross income = ! taxable ye>
 :i* includes su* date1 or if su* p]son 

is ! e/ate ( su* b5efici>y1 9 su*       
b5efici>y's gross income = ! la/ taxable
 ye> ( su* b5efici>y4  7ii7 ,special    
rules  7,i7 ,r$uction ( inclusion =     
pr$ea? exp5ses ,! am\nt includible 9    
gross income "u clause 7i7 by any p]son 
7o!r ?an ! e/ate7 %all be r$uc$ by !    
am\nt ( qualifi$ />t-up exp5ditures :i* 
7 incurr$ by ! dec$5t be=e ! date ( !   
dec$5t's dea? & paid by su* p]son )9 #a 
ye> aft] su* date4  7,,ii7 ,d$uction =  
e/ate taxes ,an appropriate d$uction    
%all be all[$ "u section #fia7;c7 to any
 p]son 7o!r ?an ! dec$5t or ! dec$5t's  
sp\se7 ) respect to am\nts includ$ 9    
gross income "u clause 7i7 by su* p]son4
  7e7 ,community prop]ty laws ,?is      
section %all be appli$ )\t reg>d to any 
community prop]ty laws4  7f7 ,cu/odial  
acc\nts ,= purposes ( ?is section1 a    
cu/odial acc\nt %all be treat$ z a tru/ 
if ! assets ( su* acc\nt are held by a  
bank 7z def9$ 9 subsection 7n77 or ano!r
 p]son :o demon/rates1 to ! satisfaction
 ( ! ,secret>y1 t ! mann] 9 :i* he w    

adm9i/] ! acc\nt w be consi/5t ) !      
requirem5ts ( ?is section1 & if !       
cu/odial acc\nt w\ld1 except = ! fact t 
x is n a tru/1 con/itute a small bus9ess
 />t-up acc\nt describ$ 9 subsection    
7a74 ,= purposes ( ?is title1 9 ! case (
 a cu/odial acc\nt treat$ z a tru/ by   
reason ( ! prec$+ s5t5ce1 ! cu/odian (  
su* acc\nt %all be treat$ z ! tru/ee    
!re(4  7g7 ,adju/m5t = inflation ,9 !   
case ( a taxable ye> beg9n+ aft]        
,decemb] #ca1 #bjad1 ! doll> am\nt 9    
subsection 7b77#a7 %all be increas$ by  
an am\nt equal to--  7#a7 su* doll>     
am\nt1 multipli$ by  7#b7 ! co/-(-liv+  
adju/m5t det]m9$ "u section #a7;f77#c7 =
 ! cal5d> ye> 9 :i* ! taxable ye> beg9s1
 det]m9$ by sub/itut+ cal5d> ye> #bjac =
 cal5d> ye> #aiib 9 subp>agraph 7,b7    
!re(4  ,if any am\nt z increas$ "u !    
prec$+ s5t5ce is n a multiple ( #ajj1   
su* am\nt %all be r\nd$ to ! ne>e/      
multiple ( #ajj4  7h7 ,reports ,! tru/ee
 ( a small bus9ess />t-up sav+s acc\nt  
%all make su* reports reg>d+ su* acc\nt 

to ! ,secret>y & to ! individual = :om !
 acc\nt is1 or is to be1 ma9ta9$ )      
respect to contributions 7& ! ye>s to   
:i* !y relate71 di/ributions1 aggregat+ 
#aj or m 9 any cal5d> ye>1 & su* o!r    
matt]s z ! ,secret>y may require4 ,!    
reports requir$ by ?is subsection--     
7#a7 %all be fil$ at su* "t & 9 su*     
mann] z ! ,secret>y prescribes1 &  7#b7 
%all be furni%$ to individuals--  7,a7 n
 lat] ?an ,janu>y #ca ( ! cal5d> ye>    
foll[+ ! cal5d> ye> to :i* su* reports  
relate1 &  7,b7 9 su* mann] z !         
,secret>y prescribes4  7i7 ,regulations 
,! ,secret>y %all issue su* regulations 
or o!r guidance z may be necess>y to    
c>ry out ?is section1 includ+ = purposes
 ( subsection 7c77#b7 ! mak+ reports by 
reg>d+ qualifi$ />t-up exp5ditures ( an 
entity 9 :i* ! taxpay] directly holds   
/ock or a capital or pr(its int]e/4  4  
7b7 ,tax on prohibit$ transactions  7#a7
 ,9 g5]al ,p>agraph 7#a7 ( section      
#dige7;e7 ( su* ,code 7relat+ to        
prohibit$ transactions7 is am5d$ by     

/rik+ or at ! end ( subp>agraph 7,f71 by
 r$esignat+ subp>agraph 7,g7 z          
subp>agraph 7,h71 & by ins]t+ aft]      
subp>agraph 7,f7 ! foll[+ new           
subp>agraph3  7,g7 a small bus9ess      
/>t-up sav+s acc\nt describ$ 9 section  
#ecj;,a1 or  4  7#b7 ,special rule      
,subsection 7c7 ( section #dige ( su*   
,code is am5d$ by add+ at ! end (       
subsection 7c7 ! foll[+ new p>agraph3   
7#g7 ,special rule = small bus9ess      
/>t-up sav+s acc\nts ,an individual = ^:
 b5efit a small bus9ess />t-up sav+s    
acc\nt is e/abli%$ & any contributor to 
su* acc\nt %all be exempt f ! tax impos$
 by ?is section ) respect to any        
transaction conc]n+ su* acc\nt 7:i* w\ld
 o!rwise be taxable "u ?is section7 if  
section #ecj;,a7d77#a7 applies ) respect
 to su* transaction or if su*           
transaction is a qualifi$ />t-up        
exp5diture 7z def9$ 9 section           
#ecj;,a7c774  4  7c7 ,failure ,to       
,provide ,reports on ,small ,bus9ess    
,/>t-,up ,sav+s ,acc\nts ,p>agraph 7#b7 

( section #ffic7;a7 ( su* ,code is am5d$
 by /rik+ & at ! end ( subp>agraph 7,d71
 by /rik+ ! p]iod at ! end ( subp>agraph
 7,e7 & ins]t+ 1 &1 & by add+ at ! end !
 foll[+ new subp>agraph3  7,f7 section  
#ecj;,a7h7 7relat+ to small bus9ess     
/>t-up sav+s acc\nts74  4  7d7 ,excess  
contributions ,section #digc7;b7 ( su*  
,code is am5d$ by add+ at ! end ! foll[+
 new subsection3  7h7 ,excess           
contributions to small bus9ess />t-,up  
sav+s acc\nts ,= purposes ( ?is section1
 9 ! case ( contributions to a small    
bus9ess />t-up sav+s acc\nt 7)9 ! mean+ 
( section #ecj;,a7b771 ! t]m excess     
contributions means ! sum (--  7#a7 !   
excess 7if any7 (--  7,a7 ! am\nt       
contribut$ = ! taxable ye> to su*       
acc\nts 7o!r ?an a rollov] contribution 
describ$ 9 section #ecj;,a7d77#d771 ov] 
7,b7 ! am\nt all[able z a contribution  
"u section #ecj;,a7b77#a71 &  7#b7 !    
am\nt det]m9$ "u ?is subsection = !     
prec$+ taxable ye>1 r$uc$ by ! sum (--  
7,a7 ! di/ributions out ( ! acc\nts = ! 

taxable ye>1 &  7,b7 ! excess 7if any7 (
 ! maximum am\nt all[able z a           
contribution "u sections #ecj;,a7b77#a7 
= ! taxable ye> ov] ! am\nt contribut$  
to ! acc\nts = ! taxable ye>4  ,=       
purposes ( ?is subsection1 any          
contribution :i* is di/ribut$ f a small 
bus9ess />t-up sav+s acc\nt 9 a         
di/ribution describ$ 9 section          
#ecj;,a7d77#c7 %all be treat$ z an am\nt
 n contribut$4  4  7e7 ,cl]ical am5dm5t 
,! table ( cont5ts = sub*apt] ,f ( *apt]
 #a ( su* ,code is am5d$ by add+ at !   
end ! foll[+ new item3  ,"p ,,ix4 ,small
 ,bus9ess ,/>t-up ,sav+s ,acc\nts  4    
7f7 ,effective date ,! am5dm5ts made by 
?is section %all apply to taxable ye>s  
beg9n+ aft] ,decemb] #ca1 #bjac4