,,ii  #aac? ,,congress  #b;d ,session   
,s4 #bbcg  ,,9 ,,! ,,s5ate ,,( ,,!      
,,unit$ ,,/ates  ,april #aj1 #bjad ,mr4 
,hoev5 7= himself & ,ms4 ,cantwell7     
introduc$ ! foll[+ bill2 :i* 0 read     
twice & ref]r$ to ! ,committee on       
,f9ance  ,a ,,bill  ,to am5d ! ,int]nal 
,rev5ue ,code ( #aihf to provide an     
elective safe h>bor = ! exp5s+ by small 
bus9esses ( ! co/s ( acquir+ or produc+ 
tangible prop]ty4  #a4 ,%ort title ,?is 
,act may be cit$ z ! ,f>m & ,small      
,bus9ess ,exp5s+ ,tax ,relief ,act4  #b4
 ,safe h>bor = exp5s+ by small bus9esses
 ( acquisition or production co/s (     
tangible prop]ty  7a7 ,9 g5]al ,section 
#bfc ( ! ,int]nal ,rev5ue ,code ( #aihf 
is am5d$ by add+ at ! end ! foll[+3  7j7
 ,election = small bus9esses ,to exp5se 
c]ta9 acquisition & production co/s     
7#a7 ,9 g5]al ,if ! am\nt paid or       
incurr$ by an eligible taxpay] to       
acquire or produce any item ( tangible  
prop]ty does n exce$ #e1jjj 7or su*     
high] am\nt z ! ,secret>y may prescribe 

by regulations71 !n1 not)/&+ subsection 
7a71 ! taxpay] may elect to treat su*   
am\nt z an exp5se :i* is n *>geable to  
capital acc\nt nor treat$ z a mat]ial or
 supply4 ,any am\nt s treat$ %all be    
all[$ z a d$uction = ! taxable ye> 9 :i*
 ! prop]ty is acquir$ or produc$4  7#b7 
,eligible taxpay] ,= purposes ( ?is     
subsection-- 7,a7 ,9 g5]al ,! t]m       
eligible taxpay] means1 ) respect to any
 taxable ye>1 a taxpay]-- 7i7 :o meets !
 gross receipts te/ ( subp>agraph 7,b7 =
 ! taxable ye>1 &  7ii7 :o1 z ( ! beg9n+
 ( ! taxable ye>1 has 9 effect writt5   
acc\nt+ proc$ures meet+ su* requirem5ts 
z ! ,secret>y may prescribe ) respect to
 ! exp5s+ ( am\nts describ$ 9 p>agraph  
7#a74  7,b7 ,gross receipts te/ ,a      
taxpay] meets ! gross receipts te/ ( ?is
 subp>agraph = any taxable ye> if !     
av]age annual gross receipts ( su*      
taxpay] = ! #c-taxable-ye> p]iod end+ ) 
! taxable ye> :i* prec$es su* taxable   
ye> does n exce$ #aj1jjj1jjj4  7,c7     
,rules relat+ to gross receipts te/ ,=  

purposes ( subp>agraph 7,b7-- 7i7 !     
rules ( p>agraphs 7#b7 & 7#c7 ( section 
#ddh7;c7 %all apply1 &  7ii7 9 ! case ( 
a p>tn]%ip1 ,s corporation1 tru/1 e/ate1
 or o!r pass-?ru entity1 ! gross        
receipts te/ %all apply at ! entity     
level4  7#c7 ,election ,any election "u 
?is subsection = any taxable ye> %all-- 
7,a7 specify ! items ( tangible prop]ty 
to :i* ! election applies1 &  7,b7 be   
made1 9 su* mann] z ! ,secret>y may     
prescribe1 on ! taxpay]'s return ( ! tax
 impos$ by ?is *apt] = ! taxable ye>4   
,any election made "u ?is subsection1 & 
any specification made 9 any su*        
election1 may n be revok$ except ) !    
cons5t ( ! ,secret>y4  7#d7 ,coord9ation
 ) section #agi ,?is subsection %all be 
appli$ be=e section #agi4  7#e7         
,regulations ,! ,secret>y %all prescribe
 su* regulations z are necess>y to c>ry 
out ! purposes ( ?is subsection1 includ+
 regulations provid+ =-- 7,a7 exceptions
 = prop]ty :i* is inv5tory or l& or =   
:i* ! taxpay] makes an election =       

optional treatm5t "u section #afb2 &    
7,b7 ! aggregation ( all am\nts paid or 
incurr$ ) respect to any item ( tangible
 prop]ty4  7#f7 ,rule ( con/ruction ,if1
 = any taxable ye>1 a taxpay] is n an   
eligible taxpay] 7or is an eligible     
taxpay] :o does n elect to h ?is        
subsection apply71 no?+ 9 ?is subsection
 %all be con/ru$ z prohibit+ ! exp5s+ ( 
any am\nt paid or incurr$ dur+ ! taxable
 ye> to acquire or produce any item (   
tangible prop]ty if su* exp5s+ is       
p]mitt$ "u any safe h>bor or o!r        
provision ( ! regulations prescrib$ "u  
?is section4  7#g7 ,cross ref]5ce ,=    
capitalization ( c]ta9 exp5ses :]e a    
taxpay] produces prop]ty or acquires    
prop]ty = resale1 see section #bfc;,a4  
4  7b7 ,effective date ,! am5dm5t made  
by ?is section %all apply to am\nts paid
 or incurr$ 9 taxable ye>s beg9n+ aft]  
,decemb] #ca1 #bjac4