,,ii  #aacth ,,congress  #ast ,session  
,s4 #ajhe  ,,in ,,the ,,senate ,,of     
,,the ,,united ,,states  ,june #c1 #bjac
 ,ms4 ,collins 7for herself and ,mr4    
,casey7 introduced the following bill2  
which was read twice and referred to the
 ,committee on ,finance  ,a ,,bill  ,to 
amend the ,internal ,revenue ,code of   
#aihf to provide tax incentives for     
small businesses4  #a4 ,short title     
,this ,act may be cited as the ,small   
,business ,tax ,certainty and ,growth   
,act of #bjac4  #b4 ,sense of the       
,senate regarding tax reform ,it is the 
sense of the ,senate that ,congress     
should undertake comprehensive tax      
reform legislation to--  7#a7 make our  
system fairer and simpler2 and  7#b7    
promote economic growth4  #c4 ,permanent
 doubling of deductions for start-up    
expenses1 organizational expenses1 and  
syndication fees  7a7 ,start-,up        
expenses  7#a7 ,in general ,clause 7ii7 
of section #aie7;b77#a77;,a7 of the     
,internal ,revenue ,code of #aihf is    

amended--  7,a7 by striking #e1jjj and  
inserting #aj1jjj1 and  7,b7 by striking
 #ej1jjj and inserting #fj1jjj4  7#b7   
,conforming amendment ,subsection 7b7 of
 section #aie of the ,internal ,revenue 
,code of #aihf is amended by striking   
paragraph 7#c74  7b7 ,organizational    
expenses ,subparagraph 7,b7 of section  
#bdh of the ,internal ,revenue ,code of 
#aihf is amended--  7#a7 by striking    
#e1jjj and inserting #aj1jjj1 and  7#b7 
by striking #ej1jjj and inserting       
#fj1jjj4  7c7 ,organization and         
syndication fees ,clause 7ii7 of section
 #gji7;b77#a77;,a7 of the ,internal     
,revenue ,code of #aihf is amended--    
7#a7 by striking #e1jjj and inserting   
#aj1jjj1 and  7#b7 by striking #ej1jjj  
and inserting #fj1jjj4  7d7 ,effective  
date ,the amendments made by this       
section shall apply to amounts paid or  
incurred in taxable years ending on or  
after the date of the enactment of this 
,act4  #d4 ,clarification of cash       
accounting rules for small business  7a7

 ,cash accounting permitted  7#a7 ,in   
general ,section #ddf of the ,internal  
,revenue ,code of #aihf 7relating to    
general rule for methods of accounting7 
is amended by adding at the end the     
following new subsection3  7g7 ,certain 
small business taxpayers permitted ,to  
use cash accounting method without      
limitation  7#a7 ,in general ,an        
eligible taxpayer shall not be required 
to use an accrual method of accounting  
for any taxable year4  7#b7 ,eligible   
taxpayer ,for purposes of this          
subsection1 a taxpayer is an eligible   
taxpayer with respect to any taxable    
year if--  7,a7 for all prior taxable   
years beginning after ,december #ca1    
#bjac1 the taxpayer 7or any predecessor7
 met the gross receipts test of section 
#ddh7;c71 and  7,b7 the taxpayer is not 
subject to section #ddg or #ddh4  4     
7#b7 ,expansion of gross receipts test  
7,a7 ,in general ,paragraph 7#c7 of     
section #ddh7;b7 of such ,code 7relating
 to entities with gross receipts of not 

more than #e1jjj1jjj7 is amended by     
striking #e1jjj1jjj in the text and in  
the heading and inserting #aj1jjj1jjj4  
7,b7 ,conforming amendments ,section    
#ddh7;c7 of such ,code is amended--  7i7
 by striking #e1jjj1jjj each place it   
appears in the text and in the heading  
of paragraph 7#a7 and inserting         
#aj1jjj1jjj1 and  7ii7 by adding at the 
end the following new paragraph3  7#d7  
,inflation adjustment ,in the case of   
any taxable year beginning in a calendar
 year after #bjad1 the dollar amount    
contained in subsection 7b77#c7 and     
paragraph 7#a7 of this subsection shall 
be increased by an amount equal to--    
7,a7 such dollar amount1 multiplied by  
7,b7 the cost-of-living adjustment      
determined under section #a7;f77#c7 for 
the calendar year in which the taxable  
year begins1 by substituting calendar   
year #bjac for calendar year #aiib in   
subparagraph 7,b7 thereof4  ,if any     
amount as adjusted under this           
subparagraph is not a multiple of       

#ajj1jjj1 such amount shall be rounded  
to the nearest multiple of #ajj1jjj4  4 
7b7 ,clarification of inventory rules   
for small business  7#a7 ,in general    
,section #dga of the ,internal ,revenue 
,code of #aihf 7relating to general rule
 for inventories7 is amended by         
redesignating subsection 7c7 as         
subsection 7d7 and by inserting after   
subsection 7b7 the following new        
subsection3  7c7 ,small business        
taxpayers not required ,to use          
inventories  7#a7 ,in general ,a        
qualified taxpayer shall not be required
 to use inventories under this section  
for a taxable year4  7#b7 ,treatment of 
taxpayers not using inventories ,if a   
qualified taxpayer does not use         
inventories with respect to any property
 for any taxable year beginning after   
,december #ca1 #bjac1 such property     
shall be treated as a material or supply
 which is not incidental4  7#c7         
,qualified taxpayer ,for purposes of    
this subsection1 the term qualified     

taxpayer means--  7,a7 any eligible     
taxpayer 7as defined in section         
#ddf7;g77#b771 and  7,b7 any taxpayer   
described in section #ddh7;b77#c74  4   
7#b7 ,increased eligibility for         
simplified dollar-value ,,lifo method   
,section #dgd7;c7 is amended by striking
 #e1jjj1jjj and inserting the dollar    
amount in effect under section          
#ddh7;c77#a74  7c7 ,effective date and  
special rules  7#a7 ,in general ,the    
amendments made by this section shall   
apply to taxable years beginning after  
,december #ca1 #bjac4  7#b7 ,change in  
method of accounting ,in the case of any
 taxpayer changing the taxpayer's method
 of accounting for any taxable year     
under the amendments made by this       
section--  7,a7 such change shall be    
treated as initiated by the taxpayer2   
7,b7 such change shall be treated as    
made with the consent of the ,secretary 
of the ,treasury2 and  7,c7 the net     
amount of the adjustments required to be
 taken into account by the taxpayer     

under section #dha of the ,internal     
,revenue ,code of #aihf shall be taken  
into account over a period 7not greater 
than #d taxable years7 beginning with   
such taxable year4  #e4 ,permanent      
extension of expensing limitation  7a7  
,dollar limitation ,section #agi7;b77#a7
 of the ,internal ,revenue ,code of     
#aihf is amended by striking shall not  
exceed and all that follows and         
inserting shall not exceed #bej1jjj44   
7b7 ,reduction in limitation ,section   
#agi7;b77#b7 of such ,code is amended by
 striking exceeds and all that follows  
and inserting exceeds #hjj1jjj44  7c7   
,inflation adjustment ,subsection 7b7 of
 section #agi of such ,code is amended  
by adding at the end the following new  
paragraph3  7#f7 ,inflation adjustment  
7,a7 ,in general ,in the case of any    
taxable year beginning in a calendar    
year after #bjad1 the #bej1jjj in       
paragraph 7#a7 and the #hjj1jjj amount  
in paragraph 7#b7 shall each be         
increased by an amount equal to--  7i7  

such dollar amount1 multiplied by  7ii7 
the cost-of-living adjustment determined
 under section #a7;f77#c7 for the       
calendar year in which the taxable year 
begins1 by substituting calendar year   
#bjac for calendar year #aiib in        
subparagraph 7,b7 thereof4  7,b7        
,rounding  7i7 ,dollar limitation ,if   
the amount in paragraph 7#a7 as         
increased under subparagraph 7,a7 is not
 a multiple of #a1jjj1 such amount shall
 be rounded to the nearest multiple of  
#a1jjj4  7ii7 ,phaseout amount ,if the  
amount in paragraph 7#b7 as increased   
under subparagraph 7,a7 is not a        
multiple of #aj1jjj1 such amount shall  
be rounded to the nearest multiple of   
#aj1jjj4  4  7d7 ,computer software     
,section #agi7;d77#a77;,a77ii7 of such  
,code is amended by striking and before 
#bjad4  7e7 ,election ,section          
#agi7;c77#b7 of such ,code is amended by
 striking and before #bjad4  7f7        
,special rules for treatment of         
qualified real property  7#a7 ,in       

general ,section #agi7;f77#a7 of such   
,code is amended by striking beginning  
in #bjaj1 #bjaa1 #bjab1 or #bjac and    
inserting beginning after #bjji4  7#b7  
,conforming amendment ,section #agi7;f7 
of such ,code is amended by striking    
paragraph 7#d74  7g7 ,effective date    
,the amendments made by this section    
shall apply to taxable years beginning  
after ,december #ca1 #bjac4  #f4        
,extension of bonus depreciation  7a7   
,in general ,paragraph 7#b7 of section  
#afh7k7 of the ,internal ,revenue ,code 
of #aihf is amended--  7#a7 by striking 
,january #a1 #bjae in subparagraph      
7,a77iv7 and inserting ,january #a1     
#bjaf1 and  7#b7 by striking ,january   
#a1 #bjad each place it appears and     
inserting ,january #a1 #bjae4  7b7      
,special rule for ,federal long-,term   
contracts ,clause 7ii7 of section       
#dfj7;c77#f77;,b7 of the ,internal      
,revenue ,code of #aihf is amended by   
striking ,january #a1 #bjad 7,january   
#a1 #bjae and inserting ,january #a1    

#bjae 7,january #a1 #bjaf4  7c7         
,conforming ,amendments  7#a7 ,the      
heading for subsection 7k7 of section   
#afh of the ,internal ,revenue ,code of 
#aihf is amended by striking ,january   
#a1 #bjad and inserting ,january #a1    
#bjae4  7#b7 ,the heading for clause    
7ii7 of section #afh7k77#b77;,b7 of such
 ,code is amended by striking           
,pre-january #a1 #bjad and inserting    
,pre-january #a1 #bjae4  7#c7 ,section  
#afh7k77#d77;,d7 is amended by striking 
and at the end of clause 7ii71 by       
striking the period at the end of clause
 7iii7 and inserting a comma1 and by    
adding at the end the following new     
clauses3  7iv7 ,january #a1 #bjae shall 
be substituted for ,january #a1 #bjaf in
 subparagraph 7,a77iv7 thereof1 and  7v7
 ,january #a1 #bjad shall be substituted
 for ,january #a1 #bjae each place it   
appears in subparagraph 7,a7 thereof4  4
  7#d7 ,section #afh7l77#d7 of such     
,code is amended by striking and at the 
end of subparagraph 7,a71 by            

redesignating subparagraph 7,b7 as      
subparagraph 7,c71 and by inserting     
after subparagraph 7,a7 the following   
new subparagraph3  7,b7 by substituting 
,january #a1 #bjad for ,january #a1     
#bjae in clause 7i7 thereof1 and  4     
7#e7 ,subparagraph 7,c7 of section      
#afh7n77#b7 of such ,code is amended by 
striking ,january #a1 #bjad and         
inserting ,january #a1 #bjae4  7#f7     
,subparagraph 7,d7 of section           
#adjj,l7b77#b7 of such ,code is amended 
by striking ,january #a1 #bjad and      
inserting ,january #a1 #bjae4  7#g7     
,subparagraph 7,b7 of section           
#adjj,n7d77#c7 of such ,code is amended 
by striking ,january #a1 #bjad and      
inserting ,january #a1 #bjae4  7d7      
,effective date ,the amendments made by 
this section shall apply to property    
placed in service after ,december #ca1  
#bjac1 in taxable years ending after    
such date4  #g4 ,extension of #ae-year  
straight-line cost recovery for         
qualified leasehold improvements1       

qualified restaurant buildings and      
improvements1 and qualified retail      
improvements  7a7 ,in ,general ,clauses 
7iv71 7v71 and 7ix7 of section          
#afh7;e77#c77;,e7 of the ,internal      
,revenue ,code of #aihf are each amended
 by striking ,january #a1 #bjad and     
inserting ,january #a1 #bjae4  7b7      
,effective ,date ,the amendments made by
 this section shall apply to property   
placed in service after ,december #ca1  
#bjac4