,,ii #aacth ,,congress #b;d ,session ,s4 #bfhj ,,in ,,the ,,senate ,,of ,,the ,,united ,,states ,july #bi1 #bjad ,mr4 ,pryor 7for himself and ,mr4 ,walsh7 introduced the following bill2 which was read twice and referred to the ,committee on ,finance ,a ,,bill ,to direct the ,secretary of ,commerce to establish a voluntary program under which manufacturers may have products certified as meeting the standards of labels that indicate to consumers the extent to which the products are manufactured in the ,united ,states1 to amend the ,internal ,revenue ,code of #aihf to allow a credit against income tax for equity investments in small business concerns1 to establish small business savings accounts1 and for other purposes4 #a4 ,short title ,this ,act may be cited as the ,buy it in ,america ,act4 #b4 ,america ,star ,program 7a7 ,in general ,the ,secretary of ,commerce shall establish a voluntary program1 to be known as the ,america ,star ,program1 under which manufacturers may have products certified as meeting the standards of labels that indicate to consumers the extent to which the products are manufactured in the ,united ,states4 7b7 ,establishment of labels 7#a7 ,in general ,not later than #b years after the date of the enactment of this ,act1 the ,secretary shall1 by rule-- 7,a7 design ,america ,star labels that are consistent with public perceptions of the meaning of descriptions of the extent to which a product is manufactured in the ,united ,states2 and 7,b7 specify the standards that a product shall meet in order to bear a particular ,america ,star label4 7c7 ,certification of products 7#a7 ,application procedures ,a manufacturer that wishes to have a product certified as meeting the standards of an ,america ,star label may apply to the ,secretary for certification in accordance with such procedures as the ,secretary shall establish by rule4 7#b7 ,action by ,secretary ,not later than such time after receiving an application for certification under paragraph 7#a7 as the ,secretary determines reasonable by rule1 the ,secretary shall-- 7,a7 determine whether the product described in the application meets the standards of the requested ,america ,star label2 7,b7 if the product meets such standards1 certify the product2 and 7,c7 notify the manufacturer of the determination and whether the product has been certified4 7d7 ,monitoring2 withdrawal of certification 7#a7 ,monitoring ,the ,secretary shall conduct such monitoring and compliance review as the ,secretary considers necessary-- 7,a7 to detect violations of subsection 7f72 and 7,b7 to ensure that products certified as meeting the standards of ,america ,star labels continue to meet such standards4 7#b7 ,withdrawal of certification 7,a7 ,on initiative of secretary ,if the ,secretary determines that a product certified as meeting the standards of an ,america ,star label no longer meets such standards1 the ,secretary shall-- 7i7 notify the manufacturer of the determination and any corrective action that would enable the product to meet such standards2 and 7ii7 if the manufacturer does not take such action within such time after receiving notification under clause 7i7 as the ,secretary determines reasonable by rule1 the ,secretary shall withdraw the certification of the product and notify the manufacturer of the withdrawal4 7,b7 ,at request of manufacturer ,at the request of the manufacturer of a product1 the ,secretary shall withdraw the certification of the product and notify the manufacturer of the withdrawal4 7e7 ,consultation 7#a7 ,required consultation with ,federal ,trade ,commission ,in establishing ,america ,star labels and operating the ,america ,star ,program1 the ,secretary shall consult with the ,federal ,trade ,commission to ensure consistency with the requirements enforced by the ,commission with respect to representations of the extent to which products are manufactured in the ,united ,states4 7#b7 ,sense of ,congress on consultation with private-sector companies ,it is the sense of ,congress that1 in establishing ,america ,star labels and operating the ,america ,star ,program1 the ,secretary should consult with private-sector companies that have developed labeling programs to verify or certify to consumers the extent to which products are manufactured in the ,united ,states4 7f7 ,prohibited conduct ,unless a certification by the ,secretary that a product meets the standards of an ,america ,star label is in effect1 a person may not-- 7#a7 place such label on such product2 7#b7 use such label in any marketing materials for such product2 or 7#c7 in any other way represent that such product meets1 or is certified as meeting1 the standards of such label4 7g7 ,enforcement 7#a7 ,enforcement by ,federal ,trade ,commission 7,a7 ,referral ,the ,secretary may refer to the ,federal ,trade ,commission any person who the ,secretary determines has violated subsection 7f74 7,b7 ,unfair or deceptive act or practice ,a violation of subsection 7f7 shall be treated as a violation of a rule defining an unfair or deceptive act or practice described under section #ah7;a77#a77;,b7 of the ,federal ,trade ,commission ,act 7#ae ,u4,s4,c4 #eg;a7a77#a77;,b774 7,c7 ,powers of ,commission ,the ,federal ,trade ,commission shall enforce subsection 7f7 in the same manner1 by the same means1 and with the same jurisdiction1 powers1 and duties as though all applicable terms and provisions of the ,federal ,trade ,commission ,act 7#ae ,u4,s4,c4 #da et seq47 were incorporated into and made a part of this section4 7#b7 ,ineligibility 7,a7 ,in general ,except as provided in subparagraph 7,c71 if the ,secretary determines that a manufacturer-- 7i7 has made a false statement to the ,secretary in connection with the ,america ,star ,program2 7ii7 knowing1 or having reason to know1 that a product does not meet the standards of an ,america ,star label-- 7,i7 has placed such label on such product2 7,,ii7 has used such label in any marketing materials for such product2 or 7,,iii7 in any other way has represented that such product meets or is certified as meeting the standards of such label2 or 7iii7 has otherwise violated the purposes of the ,america ,star ,program2 the ,secretary may not1 for a period of #e years after the conduct described in clause 7i71 7ii71 or 7iii71 certify the product to which such conduct relates as meeting the standards of an ,america ,star label4 7,b7 ,effect on existing certification ,in the case of a product with respect to which1 at the time of the determination of the ,secretary under subparagraph 7,a71 there is in effect a certification by the ,secretary that the product meets the standards of an ,america ,star label-- 7i7 if the product continues to meet such standards1 the ,secretary may either withdraw the certification or allow the certification to continue in effect1 as the ,secretary considers appropriate2 and 7ii7 if the product no longer meets such standards1 the ,secretary shall withdraw the certification4 7,c7 ,waiver ,notwithstanding subparagraph 7,a71 the ,secretary may waive or reduce the period referred to in such subparagraph if the ,secretary determines that the waiver or reduction is in the best interests of the ,america ,star ,program4 7h7 ,administrative appeal 7#a7 ,expedited appeals procedure ,the ,secretary shall establish an expedited administrative appeals procedure under which persons may appeal an action of the ,secretary under this section that-- 7,a7 adversely affects such person2 or 7,b7 is inconsistent with the ,america ,star ,program4 7#b7 ,appeal of final decision ,a final decision of the ,secretary under paragraph 7#a7 may be appealed to the ,united ,states district court for the district in which the person is located4 7i7 ,offsetting collections 7#a7 ,in general ,the ,secretary may collect reasonable fees from-- 7,a7 manufacturers that apply for certification of products as meeting the standards of ,america ,star labels2 and 7,b7 manufacturers of products for which such certifications are in effect4 7#b7 ,account ,the fees collected under paragraph 7#a7 shall be credited to the account that incurs the cost of the certification services provided under this section4 7#c7 ,use ,the fees collected under paragraph 7#a7 shall be available to the ,secretary1 without further appropriation or fiscal-year limitation1 to pay the expenses of the ,secretary incurred in providing certification services under this section4 7j7 ,definitions ,in this section3 7#a7 ,america star label ,the term ,america ,star label means a label described in subsection 7a7 and established by the ,secretary under subsection 7b77#a74 7#b7 ,america star program ,the term ,america ,star ,program means the voluntary labeling program established under this section4 7#c7 ,secretary ,the term ,secretary means the ,secretary of ,commerce4 #c4 ,angel investment tax credit 7a7 ,in general ,subpart ,b of part ,,iv of subchapter ,a of chapter #a of the ,internal ,revenue ,code of #aihf is amended by adding at the end the following new section3 #cj;,e4 ,angel investment tax credit 7a7 ,allowance of credit ,there shall be allowed as a credit against the tax imposed by this chapter for the taxable year an amount equal to #be percent of the qualified equity investments made by a qualified investor during the taxable year4 7b7 ,qualified equity investment ,for purposes of this section-- 7#a7 ,in general ,the term qualified equity investment means any equity investment in a qualified small business entity if-- 7,a7 such investment is acquired by the taxpayer at its original issue 7directly or through an underwriter7 solely in exchange for cash1 and 7,b7 such investment is designated for purposes of this section by the qualified small business entity4 7#b7 ,equity investment ,the term equity investment means-- 7,a7 any form of equity1 including a general or limited partnership interest1 common stock1 preferred stock 7other than nonqualified preferred stock as defined in section #cea7;g77#b771 with or without voting rights1 without regard to seniority position and whether or not convertible into common stock or any form of subordinate or convertible debt1 or both1 with warrants or other means of equity conversion1 and 7,b7 any capital interest in an entity which is a partnership4 7#c7 ,redemptions ,a rule similar to the rule of section #abjb7;c77#c7 shall apply for purposes of this subsection4 7c7 ,qualified small business entity ,for purposes of this section-- 7#a7 ,in general ,the term qualified small business entity means any domestic corporation or partnership if such corporation or partnership is certified by the ,secretary under subsection 7h7 and-- 7,a7 is a small business 7as defined in section #da7;b77#c77;,d77iii771 7,b7 has its headquarters as the principal place of business in the ,united ,states1 7,c7 is principally engaged in a qualified high technology trade or business1 7,d7 has been in operation in the ,united ,states for not more than #aj consecutive years as of the date of the qualified equity investment1 7,e7 employs less than #ajj full-time equivalent employees as defined in section #de,r7d77#b77;,a7 as of the date of such investment1 7,f7 has more than #ej percent of the employees performing substantially all of their services in the ,united ,states as of the date of such investment1 7,g7 at least #hj percent 7by value7 of the assets of such corporation or partnership are used by such corporation or partnership in the active conduct of #a or more qualified high technology trades or businesses1 and 7,h7 has equity investments designated for purposes of this paragraph4 7#b7 ,determination of use of assets 7,a7 ,in general ,for purposes of paragraph 7#a77;,g71 assets used in activities described in subparagraph 7,b7 shall be treated as used in the active conduct of a qualified high technology trade or business4 ,any determination under this subparagraph shall be made without regard to whether a corporation or partnership has any gross income from such activities at the time of the determination4 7,b7 ,activities ,an activity is described in this section if such activity is in connection with a future qualified high technology trade or business and such activity is-- 7i7 a start-up activity described in section #aie7;c77#a77;,a71 or 7ii7 an activity resulting in the payment or incurring of qualified research expenses 7as defined in section #da7;b774 7#c7 ,designation of equity investments ,for purposes of paragraph 7#a77;,h71 an equity investment shall not be treated as designated if such designation would result in the aggregate amount which may be taken into account under this section with respect to qualified equity investments in a qualified small business entity exceeds-- 7,a7 #aj1jjj1jjj1 taking into account the total amount of all qualified equity investments made by all taxpayers for the taxable year and all preceding taxable years1 7,b7 #b1jjj1jjj1 taking into account the total amount of all qualified equity investments made by all taxpayers for such taxable year1 and 7,c7 #a1jjj1jjj1 taking into account the total amount of all qualified equity investments made by the taxpayer for such taxable year4 7#d7 ,qualified high technology trade or business ,for purposes of this section1 the term qualified high technology trade or business is a high technology trade or business which is related to-- 7,a7 advanced materials1 nanotechnology1 or precision manufacturing1 7,b7 aerospace1 aeronautics1 or defense1 7,c7 biotechnology or pharmaceuticals1 7,d7 electronics1 semiconductors1 software1 or computer technology1 7,e7 energy1 environment1 or clean technologies1 7,f7 forest products or agricultural sciences1 7,g7 information technology1 communication technology1 digital media1 opto-electronics or photonics1 7,h7 life sciences or medical sciences1 7,i7 marine technology or aquaculture1 7,j7 manufacturing1 processing1 or assembling innovative technology products1 7,k7 transportation1 or 7,l7 any other high technology trade or business as determined by the ,secretary4 7d7 ,qualified investor ,for purposes of this section-- 7#a7 ,in general ,the term qualified investor means an accredited investor1 as defined by the ,securities and ,exchange ,commission1 investor network1 or investor fund who review new or proposed businesses for potential investment4 7#b7 ,investor network ,the term investor network means a group of accredited investors organized for the sole purpose of making qualified equity investments4 7#c7 ,investor fund 7,a7 ,in general ,the term investor fund means a corporation that for the applicable taxable year is treated as an ,s corporation or a general partnership1 limited partnership1 limited liability partnership1 trust1 or limited liability company and which for the applicable taxable year is not taxed as a corporation4 7,b7 ,allocation of credit 7i7 ,in general ,except as provided in clause 7ii71 the credit allowed under subsection 7a7 shall be allocated to the shareholders or partners of the investor fund in proportion to their ownership interest or as specified in the fund's organizational documents4 7ii7 ,single member limited liability company ,if the investor fund is a single member limited liability company that is disregarded as an entity separate from its owner1 the credit allowed under subsection 7a7 may be claimed by such limited liability company's owner1 if such owner is a person subject to the tax under this title4 7#d7 ,exclusion ,the term qualified investor does not include-- 7,a7 a person controlling at least #ej percent of the qualified small business entity1 7,b7 an employee of such entity1 or 7,c7 any bank1 bank and trust company1 insurance company1 trust company1 national bank1 savings association or building and loan association for activities that are a part of its normal course of business4 7e7 ,national limitation on amount of investments designated 7#a7 ,in general ,there is an angel investment tax credit limitation of #ajj1jjj1jjj for each year of the investment period4 7#b7 ,investment period ,the investment period is calendar years #bjae through #bjai4 7#c7 ,allocation of limitation ,the limitation under paragraph 7#a7 shall be allocated by the ,secretary among qualified small business entities selected by the ,secretary4 7#d7 ,carryover of unused limitation ,if the angel investment tax credit limitation for any calendar year exceeds the aggregate amount allocated under paragraph 7#c7 for such year1 such limitation for the succeeding calendar year shall be increased by the amount of such excess4 ,no amount may be carried under the preceding sentence to any calendar year after #bjbb4 7f7 ,application with other credits 7#a7 ,business credit treated as part of general business credit ,except as provided in paragraph 7#b71 the credit which would be allowed under subsection 7a7 for any taxable year 7determined without regard to this subsection7 shall be treated as a credit listed in section #ch7;b7 for such taxable year 7and not allowed under subsection 7a774 7#b7 ,personal credit 7,a7 ,in general ,in the case of an individual who elects the application of this paragraph1 for purposes of this title1 the credit allowed under subsection 7a7 for any taxable year 7determined after application of paragraph 7#a77 shall be treated as a credit allowable under subpart ,a for such taxable year4 7,b7 ,carryforward of unused credit ,if the credit allowable under subsection 7a7 by reason of subparagraph 7,a7 exceeds the limitation imposed by section #bf7;a7 for such taxable year1 reduced by the sum of the credits allowable under subpart ,a 7other than this section7 for such taxable year1 such excess shall be carried to each of the succeeding #bj taxable years to the extent that such unused credit may not be taken into account under subsection 7a7 by reason of subparagraph 7,a7 for a prior taxable year because of such limitation4 7g7 ,special rules 7#a7 ,related parties ,for purposes of this section-- 7,a7 ,in general ,all related persons shall be treated as #a person4 7,b7 ,related persons ,a person shall be treated as related to another person if the relationship between such persons would result in the disallowance of losses under section #bfg or #gjg7;b74 7#b7 ,basis ,for purposes of this subtitle1 the basis of any investment with respect to which a credit is allowable under this section shall be reduced by the amount of such credit so allowed4 ,this subsection shall not apply for purposes of sections #abjb1 #acig;,b1 and #adjj;,b4 7#c7 ,recapture ,the ,secretary shall1 by regulations1 provide for recapturing the benefit of any credit allowable under subsection 7a7 with respect to any qualified equity investment which is held by the taxpayer less than #c years1 except that no benefit shall be recaptured in the case of-- 7,a7 transfer of such investment by reason of the death of the taxpayer1 7,b7 transfer between spouses1 7,c7 transfer incident to the divorce 7as defined in section #ajda7 of such taxpayer1 or 7,d7 a transaction to which section #cha7;a7 applies 7relating to certain acquisitions of the assets of one corporation by another corporation74 7h7 ,regulations ,for purposes of this section-- 7#a7 ,in general ,not later than #ahj days after the date of enactment of this section1 the ,secretary shall prescribe regulations to-- 7,a7 certify qualified small business entities1 7,b7 prevent the abuse of the purposes of this section1 7,c7 impose appropriate reporting requirements and metric for measuring the effectiveness of the tax credit1 including the impact of the tax credit on domestic job creation1 and 7,d7 apply the provisions of this section to newly formed entities4 7#b7 ,certification and selection criteria ,the regulations for certifying qualified small business entities shall require the following3 7,a7 ,certification 7i7 ,application for tax credit ,each applicant for certification as a qualified small business entity shall submit an application containing such information as the ,secretary may require4 7ii7 ,time to meet criteria for certification ,each applicant for certification shall have #a year from the date of acceptance by the ,secretary of the application during which to provide to the ,secretary evidence that the requirements of the certification have been met4 7,b7 ,selection criteria ,in determining which applicants to certify under this paragraph1 the ,secretary-- 7i7 shall take into consideration only those applicants where there is a reasonable expectation of commercial viability1 and 7ii7 shall take into consideration which applicants-- 7,i7 will provide the greatest domestic job creation 7both direct and indirect7 during the tax credit period1 and 7,,ii7 have the greatest potential for technological innovation and commercial deployment4 4 7b7 ,credit made part of general business credit ,subsection 7b7 of section #ch of the ,internal ,revenue ,code of #aihf is amended in paragraph 7#ce71 by striking plus1 in paragraph 7#cf71 by striking the period at the end and inserting 1 plus1 and by adding at the end the following new paragraph3 7#cg7 the portion of the angel investment tax credit to which section #cj;,e7f77#a7 applies4 4 7c7 ,conforming amendments ,section #ajaf7;a7 of the ,internal ,revenue ,code of #aihf is amended by striking and at the end of paragraph 7#cf71 by striking the period at the end of paragraph 7#cg7 and inserting 1 and1 and by inserting after paragraph 7#cg7 the following new paragraph3 7#ch7 to the extent provided in section #cj;,e7g77#b74 4 7d7 ,clerical amendment ,the table of sections for subpart ,b of part ,,iv of subchapter ,a of chapter #a of the ,internal ,revenue ,code of #aihf is amended by adding at the end the following new item3 ,sec4 #cj;,e4 ,angel investment tax credit4 4 7e7 ,effective date ,the amendments made by this section shall apply to investments made after ,december #ca1 #bjac1 in taxable years ending after such date4 7f7 ,,gao report ,not later than two years after the date of enactment of this ,act1 the ,comptroller ,general of the ,united ,states1 pursuant to an audit of the angel investment tax credit program established under section #cj;,e of the ,internal ,revenue ,code of #aihf 7as added by subsection 7a771 shall report to ,congress on such program1 including-- 7#a7 the implementation of the regulations promulgated by the ,secretary1 7#b7 the amount of tax credits allocated to qualified small business entities in the prior year1 and 7#c7 the effectiveness of the tax credit in increasing domestic job creation by the qualified small businesses that receive the tax credit4 #d4 ,permanent full exclusion applicable to qualified small business stock 7a7 ,in general ,paragraph 7#d7 of section #abjb7;a7 of the ,internal ,revenue ,code of #aihf is amended by striking and before ,january #a1 #bjad4 7b7 ,conforming amendments 7#a7 ,section #abjb7;a7 of such ,code1 as amended by subsection 7a71 is amended by striking paragraphs 7#b7 and 7#c7 and by redesignating paragraph 7#d7 as paragraph 7#b74 7#b7 ,section #abjb7;a77#b7 of such ,code1 as redesignated by paragraph 7#a71 is amended by adding and at the end of subparagraph 7,a71 by striking subparagraph 7,b71 and by redesignating subparagraph 7,c7 as subparagraph 7,b74 7#c7 ,section #abbc7ac7 of such ,code is amended by striking #abjb7;a77#b714 7#d7 ,the heading for section #abjb of such ,code is amended by striking ,partial exclusion for gain and inserting ,exclusion of certain gain4 7#e7 ,the item relating to section #abjb in the table of sections for part ,i of subchapter ,p of chapter #a of such ,code is amended by striking ,partial exclusion for gain and inserting ,exclusion of certain gain4 7c7 ,effective date ,the amendments made by this section apply to stock acquired after ,december #ca1 #bjac4 #e4 ,establishment of small business startup 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 startup savings accounts 7a7 ,general rule ,except as provided in this section1 a ,small ,business ,startup ,savings ,account shall be treated for purposes of this title in the same manner as an individual retirement plan4 7b7 ,small business startup savings account ,for purposes of this title1 the term ,small ,business ,startup ,savings ,account means an individual retirement account 7as defined in section #dji7;a77 which is designated at the time of establishment of the plan as a ,small ,business ,startup ,savings ,account4 ,such designation shall be made in such manner as the ,secretary may prescribe4 7c7 ,treatment of contributions 7#a7 ,no deduction allowed ,no deduction shall be allowed under section #bai for a contribution to a ,small ,business ,startup ,savings ,account4 7#b7 ,contribution limit 7,a7 ,in general ,the aggregate amount of contributions for any taxable year to all ,small ,business ,startup ,savings ,accounts maintained for the benefit of an individual shall not exceed #aj1jjj4 7,b7 ,aggregate limitation ,the aggregate of the amounts which may be taken into account under subparagraph 7,a7 for all taxable years with respect to all ,small ,business ,startup ,savings ,accounts maintained for the benefit of an individual shall not exceed #aej1jjj4 7,c7 ,cost-of-living adjustment ,the ,secretary shall adjust annually the #aj1jjj amount in subparagraph 7,a7 for increases in the cost-of-living at the same time and in the same manner as adjustments under section #dae7;d72 except that the base period shall be the calendar quarter beginning ,july #a1 #bjad1 and any increase which is not a multiple of #ejj shall be rounded to the next lowest multiple of #ejj4 7#c7 ,contributions permitted after age #gj ,contributions to a ,small ,business ,startup ,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 ,startup ,savings ,account from any qualified retirement plan 7as defined in section #digd7;c774 7d7 ,distribution rules ,for purposes of this title-- 7#a7 ,qualified distributions 7,a7 ,in general ,any qualified distribution from a ,small ,business ,startup ,savings ,account shall not be includible in gross income4 7,b7 ,qualified distribution defined ,for purposes of this subsection1 the term qualified distribution means any payment or distribution made for operating capital1 the purchase of equipment or facilities1 marketing1 training1 incorporation1 and accounting fees4 7,c7 ,limitations on qualified distributions ,all qualified distributions from a ,small ,business ,startup ,savings ,account-- 7i7 shall be limited to a single business1 and 7ii7 must be disbursed not later than the last day of the #eth taxable year beginning after the initial disbursement4 7#b7 ,nonqualified distributions 7,a7 ,in general ,in applying section #gb to any distribution from a ,small ,business ,startup ,savings ,account which is not a qualified distribution1 such distribution shall be treated as made from contributions to the ,small ,business ,startup ,savings ,account to the extent that such distribution1 when added to all previous distributions from the ,small ,business ,startup ,savings ,account1 does not exceed the aggregate amount of contributions to the ,small ,business ,startup ,savings ,account4 7,b7 ,treatment of amounts remaining in account ,any remaining amount in a ,small ,business ,startup ,savings ,account following the date described in paragraph 7#a77;,a77ii7 shall be treated as distributed during the taxable year following such date and such distribution shall not be treated as a qualified distribution4 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 startup savings accounts ,for purposes of this section1 in the case of contributions to all ,small ,business ,startup ,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#b7 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#b7 for such taxable year1 over 7ii7 the amount contributed to such accounts for such taxable year4 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 ,startup ,savings ,accounts4 4 7d7 ,effective date ,the amendments made by this section shall apply to taxable years beginning after ,december #ca1 #bjac4