,i  #aac? ,,congress  #b;d ,session  ,h4
 ,r4 #ecdf  ,,9 ,,! ,,h\se ,,(          
,,repres5tatives  ,july #ca1 #bjad ,mr4 
,k9d 7= himself & ,mr4 ,re$7 introduc$ !
 foll[+ bill2 :i* 0 ref]r$ to !         
,committee on ,ways & ,means  ,a ,,bill 
,to am5d ! ,int]nal ,rev5ue ,code (     
#aihf to all[ a bus9ess cr$it =         
inve/m5ts 9 rural microbus9esses4  #a4  
,%ort title ,?is ,act may be cit$ z !   
,rural ,microbus9ess ,inve/m5t ,cr$it   
,act ( #bjad4  #b4 ,rural microbus9ess  
inve/m5t cr$it  7a7 ,9 g5]al ,subp>t ,d 
( "p ,,iv ( sub*apt] ,a ( *apt] #a ( !  
,int]nal ,rev5ue ,code ( #aihf 7relat+  
to bus9ess relat$ cr$its7 is am5d$ by   
add+ at ! end ! foll[+ new section3     
#de,s4 ,rural microbus9ess inve/m5t     
cr$it  7a7 ,9 g5]al ,= purposes (       
section #ch1 ! am\nt ( ! rural          
microbus9ess inve/m5t cr$it det]m9$ "u  
?is section = any taxable ye> ) respect 
to a rural microbus9ess is equal to #ce 
p]c5t ( ! qualifi$ new inve/m5ts 9 !    
rural microbus9ess = ! taxable ye>4  7b7

 ,limitations  7#a7 ,p] bus9ess         
limitations ,! am\nt all[$ z a cr$it "u 
subsection 7a7 ) respect to any rural   
microbus9ess = a taxable ye> %all n     
exce$--  7,a7 #aj1jjj1 r$uc$ 7b n bel[  
z]o7 by  7,b7 ! am\nt all[$ "u          
subsection 7a7 to ! rural microbus9ess =
 all prec$+ taxable ye>s4  7#b7 ,p]     
taxpay] limitations ,! am\nt all[$ z a  
cr$it "u subsection 7a7 ) respect to any
 taxpay] ) respect to all rural         
microbus9esses ( ! taxpay] = a taxable  
ye> %all n exce$--  7,a7 #aj1jjj1 r$uc$ 
7b n bel[ z]o7 by  7,b7 ! am\nt all[$ "u
 subsection 7a7 to ! taxpay] ) respect  
to rural microbus9esses = all prec$+    
taxable ye>s4  7c7 ,def9itions ,=       
purposes ( ?is section--  7#a7 ,qualifi$
 new inve/m5t ,! t]m qualifi$ new       
inve/m5t means ! excess (--  7,a7       
qualifi$ exp5ditures paid or incurr$ = !
 taxable ye>1 ov]  7,b7 ! great] (--    
7i7 qualifi$ exp5ditures paid or incurr$
 = ! prec$+ taxable ye>1 or  7ii7 !     
av]age annual qualifi$ exp5ditures paid 

or incurr$ ov] ! prec$+ ?ree taxable    
ye>s4  ,if ! rural microbus9ess 0 n 9   
exi/5ce = ! entire #c-ye> p]iod ref]r$  
to 9 clause 7ii7 ( subp>agraph 7,b71    
subp>agraph 7,b7 %all be appli$ )\t     
reg>d to s mu* ( su* subp>agraph z      
prec$es su* clause 7ii7 & any taxable   
ye>s dur+ su* #c-ye> p]iod = :i* ! rural
 microbus9ess 0 n 9 exi/5ce %all be tak5
 into acc\nt z taxable ye>s dur+ :i* !re
 7 no qualifi$ exp5ditures4  7#b7       
,qualifi$ exp5ditures  7,a7 ,9 g5]al ,! 
t]m qualifi$ exp5ditures means any am\nt
 :i* is paid or incurr$ ) respect to a  
rural microbus9ess4 ,su* t]m includes   
co/s = capital plant & equipm5t1        
inv5tory exp5ses1 & wages4  7,b7        
,exception ,su* t]m does n include--    
7i7 any int]e/ co/1  7ii7 ! co/ ( any   
vehicle :i* is n a qualifi$ nonp]sonal  
use vehicle 7z def9$ 9 section          
#bgd7;i771 &  7iii7 ! co/ ( any         
comp5sation or b5efits to ! taxpay]     
claim+ ! cr$it1 includ+ ! taxpay]'s     
sp\se & dep5d5ts4  7#c7 ,rural          

microbus9ess  7,a7 ,9 g5]al ,! t]m rural
 microbus9ess means any trade or bus9ess
 if--  7i7 su* trade or bus9ess is      
op]at$ z a proprietor%ip1 p>tn]%ip1 tru/
 7to ! ext5t t ! tru/ is a pass-?ru     
entity71 ,s corporation1 or o!r pass-?ru
 entity1  7ii7 ea* ( ! own]s ( su* trade
 or bus9ess1 ) respect to ! taxable ye> 
= :i* ! cr$it is claim$--  7,i7         
mat]ially p>ticipates 7z det]m9$ "u     
rules simil> to ! rules ( section       
#dfi7;h77 9 su* trade or bus9ess1 &     
7,,ii7 9 ! case ( any trade or bus9ess  
sub/antially all ( ! activity ( :i* is 9
 agricultural production1 is a fir/-"t  
f>m] 7z def9$ 9 section                 
#adg7;c77#b77;,c771  7iii7 su* trade or 
bus9ess is c>ri$ on1 & physically       
locat$1 9 a di/ress$ rural area dur+ !  
taxable ye> = :i* ! cr$it is claim$1    
7iv7 su* trade or bus9ess employs n m   
?an #e full "t 7or full-"t equival5t7   
employees dur+ ! taxable ye> = :i* !    
cr$it is claim$1 &  7v7 :i* meets !     
gross rev5ue te/ "u subp>agraph 7,d7 = !

 fir/ taxable ye> 9 :i* ! cr$it "u      
subsection 7a7 is all[able ) respect to 
! trade or bus9ess4  7,b7 ,exceptions   
,su* t]m %all n include--  7i7 any trade
 or bus9ess :i* includes1 9 :ole or 9   
"p1 any private or comm]cial golf c\rse1
 c\ntry club1 massage p>lor1 hot tub    
facility1 suntan facility1 racetrack or 
o!r facility us$ = gambl+1 or any /ore !
 pr9cipal bus9ess ( :i* is ! sale (     
alcoholic bev]ages = consumption (f     
premises1 or  7ii7 any trade or bus9ess 
) respect to :i* records are requir$ "u 
section #bbeg ( title #ah1 ,unit$ ,/ates
 ,code1 to be ma9ta9$ ) respect to any  
p]=m]4  7,c7 ,gross rev5ue te/  7i7 ,9  
g5]al ,a trade or bus9ess meets ! gross 
rev5ue te/ ( ?is subp>agraph = any      
taxable ye> if ! av]age annual gross    
rev5ue ( ! trade or bus9ess = !         
#c-taxable ye> p]iod end+ ) ! taxable   
ye> does n exce$ #a1jjj1jjj4  7ii7      
,aggregation rules ,all p]sons treat$ z 
a s+le employ] "u subsection 7a7 or 7b7 
or section #eb or subsection 7m7 or 7o7 

( section #dad %all be treat$ z a trade 
or bus9ess = purposes ( clause 7i74     
7iii7 ,special rules = entities n 9     
exi/5ce = entire #c-ye> p]iod1 etc      
,rules simil> to ! rules ( subp>agraphs 
7,a71 7,b71 & 7,d7 ( section            
#ddh7;c77#c7 %all apply = purposes ( ?is
 subp>agraph4  7,d7 ,self-employ$       
individuals ,= purposes ( ?is p>agraph1 
if1 ) respect to a trade or bus9ess1 an 
individual is treat$ z an employee "u   
section #dja7;c71 su* individual %all be
 treat$ z an employee ( su* trade or    
bus9ess = purposes ( ! prec$+ s5t5ce4   
7,e7 ,full-"t equival5t employee ,=     
purposes ( ?is p>agraph--  7i7 ,9 g5]al 
,! t]m full-"t equival5t employee means 
a numb] ( employees equal to ! numb]    
det]m9$ by divid+--  7,i7 ! total numb] 
( h\rs ( s]vice = :i* wages 7 paid by ! 
employ] to employees dur+ ! taxable ye>1
 by  7,,ii7 #b1jhj4  ,su* numb] %all be 
r\nd$ to ! next l[e/ :ole numb] if n    
o!rwise a :ole numb]4  7ii7 ,excess h\rs
 n c\nt$ ,if an employee works 9 excess 

( #b1jhj h\rs ( s]vice dur+ any taxable 
ye>1 su* excess %all n be tak5 into     
acc\nt "u clause 7i74  7iii7 ,h\rs (    
s]vice ,! ,secret>y1 9 consultation ) ! 
,secret>y ( ,labor1 %all prescribe su*  
regulations1 rules1 & guidance z may be 
necess>y to det]m9e ! h\rs ( s]vice ( an
 employee1 includ+ rules = ! application
 ( ?is p>agraph to employees :o are n   
comp5sat$ on an h\rly basis4  7#d7      
,di/ress$ rural area  7,a7 ,9 g5]al ,!  
t]m di/ress$ rural area means any       
qualifi$ area 9 ! ,unit$ ,/ates--  7i7 t
 has lo/ at lea/ #e p]c5t ( its         
population ov] ! la/ #aj ye>s1  7ii7 t  
lo/ at lea/ #aj p]c5t if its population 
ov] ! la/ #bj ye>s1  7iii7 t has m$ian  
family income bel[ #he p]c5t ( !        
national m$ian family income1  7iv7 t   
has a pov]ty rate t exce$s #ab4e p]c5t1 
or  7v7 :]e av]age unemploym5t 9 !      
prec$+ ye> exce$s #abj p]c5t ( !        
national av]age4  7,b7 ,qualifi$ area ,=
 purposes ( subp>agraph 7,a71 ! t]m     
qualifi$ area means--  7i7 any area o!r 

?an--  7,i7 a city or t[n t has a       
population ( great] ?an #ej1jjj         
inhabitants1 &  7,,ii7 any urbaniz$ area
 contigu\s & adjac5t to a city or t[n   
describ$ 9 subclause 7,i71 &  7ii7 any  
c\nty 9 :i*--  7,i7 !re is no city or   
t[n t has a population ( great] ?an     
#ajj1jjj inhabitants1 &  7,,ii7 !re are 
no urbaniz$ areas contigu\s & adjac5t to
 a city or t[n describ$ 9 subclause     
7,i74  7,c7 ,relevant s\rces ( in=mation
 ,9 det]m9+ :e!r an area is a di/ress$  
rural area "u ?is p>agraph1 su*         
det]m9ation %all be made 9 accordance ) 
! mo/ rec5t in=mation f ! ,bureau ( !   
,c5sus1 ! ,bureau ( ,labor ,/ati/ics1 or
 o!r gov]nm5t entity ) relevant         
in=mation4  7#e7 ,relat$ p]sons ,a p]son
 %all be treat$ z relat$ to ano!r p]son 
if ! relation%ip betwe5 su* p]sons w\ld 
result 9 ! disall[ance ( losses "u      
section #bfg or #gjg7;b7 7b1 9 apply+   
section #bfg7;b7 & 7c7 = purposes ( ?is 
section1 p>agraph 7#d7 ( section        
#bfg7;c7 %all be treat$ z provid+ t !   

family ( an individual %all include only
 8 sp\se1 ance/ors1 & l9eal desc5dants74
  7d7 ,d5ial ( d\ble b5efit ,no d$uction
 or cr$it %all be all[$ "u any o!r      
provision ( ?is *apt] = any am\nt tak5  
into acc\nt 9 det]m9+ ! cr$it "u ?is    
section4  7e7 ,o!r rules  7#a7 ,m>ri$   
c\ple mu/ file jo9t return ,rules simil>
 to ! rules ( p>agraphs 7#b71 7#c71 &   
7#d7 ( section #ba7;e7 %all apply =     
purposes ( ?is section4  7#b7 ,d5ial (  
cr$it to dep5d5ts ,no cr$it %all be     
all[$ "u ?is section to any individual )
 respect to :om a d$uction is all[$ "u  
section #aea is all[able to ano!r       
taxpay] = a taxable ye> beg9n+ 9 !      
cal5d> ye> 9 :i* su* individual's cal5d>
 ye> beg9s4  4  7b7 ,cr$it all[$ z "p ( 
g5]al bus9ess cr$it ,section #ch7;b7 (  
su* ,code 7def9+ curr5t ye> bus9ess     
cr$it7 is am5d$ by /rik+ plus at ! end (
 p>agraph 7#ce71 by /rik+ ! p]iod at !  
end ( p>agraph 7#cf7 & ins]t+ 1 plus1 & 
by add+ at ! end ! foll[+ new p>agraph3 
7#cg7 ! rural microbus9ess inve/m5t     

cr$it det]m9$ "u section #de,s7a74  4   
7c7 ,c>ryov] ( ,unus$ ,cr$it ,subsection
 7a7 ( section #ci ( su* ,code is am5d$ 
by add+ at ! end ! foll[+ new p>agraph3 
7#e7 #e-ye> c>ryback = rural            
microbus9ess inve/m5t cr$it ,not)/&+    
subsection 7d71 9 ! case ( ! rural      
microbus9ess inve/m5t cr$it--  7,a7 ?is 
section %all be appli$ sep>ately f !    
bus9ess cr$it & ! m>g9al oil & gas well 
production cr$it 7o!r ?an ! rural       
microbus9ess inve/m5t cr$it71  7,b7     
p>agraph 7#a7 %all be appli$ by         
sub/itut+ ea* ( ! #e taxable ye>s = !   
taxable ye> 9 subp>agraph 7,a7 !re(1 &  
7,c7 p>agraph 7#b7 %all be appli$--  7i7
 by sub/itut+ #be taxable ye>s = #ba    
taxable ye>s 9 subp>agraph 7,a7 !re(1 & 
7ii7 by sub/itut+ #bd taxable ye>s = #bj
 taxable ye>s 9 subp>agraph 7,b7 !re(4  
4  7d7 ,con=m+ am5dm5t ,! table (       
sections = subp>t ,d ( "p ,,iv (        
sub*apt] ,a ( *apt] #a ( su* ,code is   
am5d$ by add+ at ! end ! foll[+ new     
item3  ,sec4 #de,s4 ,rural microbus9ess 

inve/m5t cr$it4  4  7e7 ,effective date 
,! am5dm5ts made by ?is section %all    
apply to exp5ditures made 9 taxable ye>s
 beg9n+ aft] ! date ( ! enactm5t ( ?is  
,act4