,,ii  #aac? ,,congress  #b;d ,session   
,s4 #bfhj  ,,9 ,,! ,,s5ate ,,( ,,!      
,,unit$ ,,/ates  ,july #bi1 #bjad ,mr4  
,pryor 7= himself & ,mr4 ,wal%7         
introduc$ ! foll[+ bill2 :i* 0 read     
twice & ref]r$ to ! ,committee on       
,f9ance  ,a ,,bill  ,to direct !        
,secret>y ( ,comm]ce to e/abli% a       
volunt>y program "u :i* manufactur]s may
 h products c]tifi$ z meet+ ! /&>ds (   
labels t indicate to consum]s ! ext5t to
 :i* ! products are manufactur$ 9 !     
,unit$ ,/ates1 to am5d ! ,int]nal       
,rev5ue ,code ( #aihf to all[ a cr$it   
aga9/ income tax = equity inve/m5ts 9   
small bus9ess conc]ns1 to e/abli% small 
bus9ess sav+s acc\nts1 & = o!r purposes4
  #a4 ,%ort title  ,?is ,act may be cit$
 z ! ,buy x 9 ,am]ica ,act4  #b4 ,am]ica
 ,/> ,program  7a7 ,9 g5]al ,! ,secret>y
 ( ,comm]ce %all e/abli% a volunt>y     
program1 to be kn[n z ! ,am]ica ,/>     
,program1 "u :i* manufactur]s may h     
products c]tifi$ z meet+ ! /&>ds (      
labels t indicate to consum]s ! ext5t to

 :i* ! products are manufactur$ 9 !     
,unit$ ,/ates4  7b7 ,e/abli%m5t ( labels
  7#a7 ,9 g5]al ,n lat] ?an #b ye>s aft]
 ! date ( ! enactm5t ( ?is ,act1 !      
,secret>y %all1 by rule-- 7,a7 design   
,am]ica ,/> labels t are consi/5t )     
public p]ceptions ( ! mean+ (           
descriptions ( ! ext5t to :i* a product 
is manufactur$ 9 ! ,unit$ ,/ates2 &     
7,b7 specify ! /&>ds t a product %all   
meet 9 ord] to be> a p>ticul> ,am]ica   
,/> label4  7c7 ,c]tification ( products
  7#a7 ,application proc$ures ,a        
manufactur] t wi%es to h a product      
c]tifi$ z meet+ ! /&>ds ( an ,am]ica ,/>
 label may apply to ! ,secret>y =       
c]tification 9 accordance ) su*         
proc$ures z ! ,secret>y %all e/abli% by 
rule4  7#b7 ,action by ,secret>y ,n lat]
 ?an su* "t aft] receiv+ an application 
= c]tification "u p>agraph 7#a7 z !     
,secret>y det]m9es reasonable by rule1 !
 ,secret>y %all-- 7,a7 det]m9e :e!r !   
product describ$ 9 ! application meets !
 /&>ds ( ! reque/$ ,am]ica ,/> label2   

7,b7 if ! product meets su* /&>ds1      
c]tify ! product2 &  7,c7 notify !      
manufactur] ( ! det]m9ation & :e!r !    
product has be5 c]tifi$4  7d7 ,monitor+2
 )drawal ( c]tification  7#a7 ,monitor+ 
,! ,secret>y %all conduct su* monitor+ &
 compliance review z ! ,secret>y        
consid]s necess>y-- 7,a7 to detect      
violations ( subsection 7f72 &  7,b7 to 
ensure t products c]tifi$ z meet+ !     
/&>ds ( ,am]ica ,/> labels cont9ue to   
meet su* /&>ds4  7#b7 ,)drawal (        
c]tification  7,a7 ,on initiative (     
secret>y ,if ! ,secret>y det]m9es t a   
product c]tifi$ z meet+ ! /&>ds ( an    
,am]ica ,/> label no long] meets su*    
/&>ds1 ! ,secret>y %all-- 7i7 notify !  
manufactur] ( ! det]m9ation & any       
corrective action t w\ld enable !       
product to meet su* /&>ds2 &  7ii7 if ! 
manufactur] does n take su* action )9   
su* "t aft] receiv+ notification "u     
clause 7i7 z ! ,secret>y det]m9es       
reasonable by rule1 ! ,secret>y %all    
)draw ! c]tification ( ! product &      

notify ! manufactur] ( ! )drawal4  7,b7 
,at reque/ ( manufactur] ,at ! reque/ ( 
! manufactur] ( a product1 ! ,secret>y  
%all )draw ! c]tification ( ! product & 
notify ! manufactur] ( ! )drawal4  7e7  
,consultation  7#a7 ,requir$            
consultation ) ,f$]al ,trade ,commission
 ,9 e/abli%+ ,am]ica ,/> labels & op]at+
 ! ,am]ica ,/> ,program1 ! ,secret>y    
%all consult ) ! ,f$]al ,trade          
,commission to ensure consi/5cy ) !     
requirem5ts en=c$ by ! ,commission )    
respect to repres5tations ( ! ext5t to  
:i* products are manufactur$ 9 ! ,unit$ 
,/ates4  7#b7 ,s5se ( ,congress on      
consultation ) private-sector companies 
,x is ! s5se ( ,congress t1 9 e/abli%+  
,am]ica ,/> labels & op]at+ ! ,am]ica   
,/> ,program1 ! ,secret>y %\ld consult )
 private-sector companies t h develop$  
label+ programs to v]ify or c]tify to   
consum]s ! ext5t to :i* products are    
manufactur$ 9 ! ,unit$ ,/ates4  7f7     
,prohibit$ conduct ,unless a            
c]tification by ! ,secret>y t a product 

meets ! /&>ds ( an ,am]ica ,/> label is 
9 effect1 a p]son may n-- 7#a7 place su*
 label on su* product2  7#b7 use su*    
label 9 any m>ket+ mat]ials = su*       
product2 or  7#c7 9 any o!r way repres5t
 t su* product meets1 or is c]tifi$ z   
meet+1 ! /&>ds ( su* label4  7g7        
,en=cem5t  7#a7 ,en=cem5t by ,f$]al     
,trade ,commission  7,a7 ,ref]ral ,!    
,secret>y may ref] to ! ,f$]al ,trade   
,commission any p]son :o ! ,secret>y    
det]m9es has violat$ subsection 7f74    
7,b7 ,unfair or deceptive act or        
practice ,a violation ( subsection 7f7  
%all be treat$ z a violation ( a rule   
def9+ an unfair or deceptive act or     
practice describ$ "u section            
#ah7;a77#a77;,b7 ( ! ,f$]al ,trade      
,commission ,act 7#ae ,u4,s4,c4         
#eg;a7a77#a77;,b774  7,c7 ,p[]s (       
,commission ,! ,f$]al ,trade ,commission
 %all en=ce subsection 7f7 9 ! same     
mann]1 by ! same means1 & ) ! same      
jurisdiction1 p[]s1 & duties z ?\gh all 
applicable t]ms & provisions ( ! ,f$]al 

,trade ,commission ,act 7#ae ,u4,s4,c4  
#da et seq47 7 incorporat$ into & made a
 "p ( ?is section4  7#b7 ,ineligibility 
7,a7 ,9 g5]al ,except z provid$ 9       
subp>agraph 7,c71 if ! ,secret>y        
det]m9es t a manufactur]-- 7i7 has made 
a false /atem5t to ! ,secret>y 9        
connection ) ! ,am]ica ,/> ,program2    
7ii7 kn[+1 or hav+ reason to "k1 t a    
product does n meet ! /&>ds ( an ,am]ica
 ,/> label-- 7,i7 has plac$ su* label on
 su* product2  7,,ii7 has us$ su* label 
9 any m>ket+ mat]ials = su* product2 or 
7,,iii7 9 any o!r way has repres5t$ t   
su* product meets or is c]tifi$ z meet+ 
! /&>ds ( su* label2 or  7iii7 has      
o!rwise violat$ ! purposes ( ! ,am]ica  
,/> ,program2  ! ,secret>y may n1 = a   
p]iod ( #e ye>s aft] ! conduct describ$ 
9 clause 7i71 7ii71 or 7iii71 c]tify !  
product to :i* su* conduct relates z    
meet+ ! /&>ds ( an ,am]ica ,/> label4   
7,b7 ,effect on exi/+ c]tification ,9 ! 
case ( a product ) respect to :i*1 at ! 
"t ( ! det]m9ation ( ! ,secret>y "u     

subp>agraph 7,a71 !re is 9 effect a     
c]tification by ! ,secret>y t ! product 
meets ! /&>ds ( an ,am]ica ,/> label--  
7i7 if ! product cont9ues to meet su*   
/&>ds1 ! ,secret>y may ei!r )draw !     
c]tification or all[ ! c]tification to  
cont9ue 9 effect1 z ! ,secret>y consid]s
 appropriate2 &  7ii7 if ! product no   
long] meets su* /&>ds1 ! ,secret>y %all 
)draw ! c]tification4  7,c7 ,waiv]      
,not)/&+ subp>agraph 7,a71 ! ,secret>y  
may waive or r$uce ! p]iod ref]r$ to 9  
su* subp>agraph if ! ,secret>y det]m9es 
t ! waiv] or r$uction is 9 ! be/ int]e/s
 ( ! ,am]ica ,/> ,program4  7h7         
,adm9i/rative appeal  7#a7 ,exp$it$     
appeals proc$ure ,! ,secret>y %all      
e/abli% an exp$it$ adm9i/rative appeals 
proc$ure "u :i* p]sons may appeal an    
action ( ! ,secret>y "u ?is section t-- 
7,a7 adv]sely affects su* p]son2 or     
7,b7 is inconsi/5t ) ! ,am]ica ,/>      
,program4  7#b7 ,appeal ( f9al decision 
,a f9al decision ( ! ,secret>y "u       
p>agraph 7#a7 may be appeal$ to ! ,unit$

 ,/ates di/rict c\rt = ! di/rict 9 :i* !
 p]son is locat$4  7i7 ,(fsett+         
collections  7#a7 ,9 g5]al ,! ,secret>y 
may collect reasonable fees f-- 7,a7    
manufactur]s t apply = c]tification (   
products z meet+ ! /&>ds ( ,am]ica ,/>  
labels2 &  7,b7 manufactur]s ( products 
= :i* su* c]tifications are 9 effect4   
7#b7 ,acc\nt ,! fees collect$ "u        
p>agraph 7#a7 %all be cr$it$ to ! acc\nt
 t incurs ! co/ ( ! c]tification s]vices
 provid$ "u ?is section4  7#c7 ,use ,!  
fees collect$ "u p>agraph 7#a7 %all be  
available to ! ,secret>y1 )\t fur!r     
appropriation or fiscal-ye> limitation1 
to pay ! exp5ses ( ! ,secret>y incurr$ 9
 provid+ c]tification s]vices "u ?is    
section4  7j7 ,def9itions ,9 ?is        
section3 7#a7 ,am]ica /> label ,! t]m   
,am]ica ,/> label means a label describ$
 9 subsection 7a7 & e/abli%$ by !       
,secret>y "u subsection 7b77#a74  7#b7  
,am]ica /> program ,! t]m ,am]ica ,/>   
,program means ! volunt>y label+ program
 e/abli%$ "u ?is section4  7#c7         

,secret>y ,! t]m ,secret>y means !      
,secret>y ( ,comm]ce4  #c4 ,angel       
inve/m5t tax cr$it  7a7 ,9 g5]al ,subp>t
 ,b ( "p ,,iv ( sub*apt] ,a ( *apt] #a (
 ! ,int]nal ,rev5ue ,code ( #aihf is    
am5d$ by add+ at ! end ! foll[+ new     
section3  #cj;,e4 ,angel inve/m5t tax   
cr$it  7a7 ,all[ance ( cr$it ,!re %all  
be all[$ z a cr$it aga9/ ! tax impos$ by
 ?is *apt] = ! taxable ye> an am\nt     
equal to #be p]c5t ( ! qualifi$ equity  
inve/m5ts made by a qualifi$ inve/or    
dur+ ! taxable ye>4  7b7 ,qualifi$      
equity inve/m5t ,= purposes ( ?is       
section-- 7#a7 ,9 g5]al ,! t]m qualifi$ 
equity inve/m5t means any equity        
inve/m5t 9 a qualifi$ small bus9ess     
entity if-- 7,a7 su* inve/m5t is acquir$
 by ! taxpay] at its orig9al issue      
7directly or ?r\gh an und]writ]7 solely 
9 ex*ange = ca%1 &  7,b7 su* inve/m5t is
 designat$ = purposes ( ?is section by !
 qualifi$ small bus9ess entity4  7#b7   
,equity inve/m5t ,! t]m equity inve/m5t 
means-- 7,a7 any =m ( equity1 includ+ a 

g5]al or limit$ p>tn]%ip int]e/1 common 
/ock1 pref]r$ /ock 7o!r ?an nonqualifi$ 
pref]r$ /ock z def9$ 9 section          
#cea7;g77#b771 ) or )\t vot+ rights1 )\t
 reg>d to s5iority position & :e!r or n 
conv]tible into common /ock or any =m ( 
subord9ate or conv]tible debt1 or bo?1 )
 w>rants or o!r means ( equity          
conv]sion1 &  7,b7 any capital int]e/ 9 
an entity :i* is a p>tn]%ip4  7#c7      
,r$emptions ,a rule simil> to ! rule (  
section #abjb7;c77#c7 %all apply =      
purposes ( ?is subsection4  7c7         
,qualifi$ small bus9ess entity ,=       
purposes ( ?is section-- 7#a7 ,9 g5]al  
,! t]m qualifi$ small bus9ess entity    
means any dome/ic corporation or        
p>tn]%ip if su* corporation or p>tn]%ip 
is c]tifi$ by ! ,secret>y "u subsection 
7h7 &-- 7,a7 is a small bus9ess 7z def9$
 9 section #da7;b77#c77;,d77iii771  7,b7
 has its headqu>t]s z ! pr9cipal place (
 bus9ess 9 ! ,unit$ ,/ates1  7,c7 is    
pr9cipally engag$ 9 a qualifi$ high     
te*nology trade or bus9ess1  7,d7 has   

be5 9 op]ation 9 ! ,unit$ ,/ates = n m  
?an #aj consecutive ye>s z ( ! date ( ! 
qualifi$ equity inve/m5t1  7,e7 employs 
less ?an #ajj full-"t equival5t         
employees z def9$ 9 section             
#de,r7d77#b77;,a7 z ( ! date ( su*      
inve/m5t1  7,f7 has m ?an #ej p]c5t ( ! 
employees p]=m+ sub/antially all ( _!   
s]vices 9 ! ,unit$ ,/ates z ( ! date (  
su* inve/m5t1  7,g7 at lea/ #hj p]c5t   
7by value7 ( ! assets ( su* corporation 
or p>tn]%ip are us$ by su* corporation  
or p>tn]%ip 9 ! active conduct ( #a or m
 qualifi$ high te*nology trades or      
bus9esses1 &  7,h7 has equity inve/m5ts 
designat$ = purposes ( ?is p>agraph4    
7#b7 ,det]m9ation ( use ( assets  7,a7  
,9 g5]al ,= purposes ( p>agraph         
7#a77;,g71 assets us$ 9 activities      
describ$ 9 subp>agraph 7,b7 %all be     
treat$ z us$ 9 ! active conduct ( a     
qualifi$ high te*nology trade or        
bus9ess4 ,any det]m9ation "u ?is        
subp>agraph %all be made )\t reg>d to   
:e!r a corporation or p>tn]%ip has any  

gross income f su* activities at ! "t ( 
! det]m9ation4  7,b7 ,activities ,an    
activity is describ$ 9 ?is section if   
su* activity is 9 connection ) a future 
qualifi$ high te*nology trade or bus9ess
 & su* activity is-- 7i7 a />t-up       
activity describ$ 9 section             
#aie7;c77#a77;,a71 or  7ii7 an activity 
result+ 9 ! paym5t or incurr+ ( qualifi$
 rese>* exp5ses 7z def9$ 9 section      
#da7;b774  7#c7 ,designation ( equity   
inve/m5ts ,= purposes ( p>agraph        
7#a77;,h71 an equity inve/m5t %all n be 
treat$ z designat$ if su* designation   
w\ld result 9 ! aggregate am\nt :i* may 
be tak5 into acc\nt "u ?is section )    
respect to qualifi$ equity inve/m5ts 9 a
 qualifi$ small bus9ess entity exce$s-- 
7,a7 #aj1jjj1jjj1 tak+ into acc\nt !    
total am\nt ( all qualifi$ equity       
inve/m5ts made by all taxpay]s = !      
taxable ye> & all prec$+ taxable ye>s1  
7,b7 #b1jjj1jjj1 tak+ into acc\nt !     
total am\nt ( all qualifi$ equity       
inve/m5ts made by all taxpay]s = su*    

taxable ye>1 &  7,c7 #a1jjj1jjj1 tak+   
into acc\nt ! total am\nt ( all qualifi$
 equity inve/m5ts made by ! taxpay] =   
su* taxable ye>4  7#d7 ,qualifi$ high   
te*nology trade or bus9ess ,= purposes (
 ?is section1 ! t]m qualifi$ high       
te*nology trade or bus9ess is a high    
te*nology trade or bus9ess :i* is relat$
 to-- 7,a7 advanc$ mat]ials1            
nanote*nology1 or precision manufactur+1
  7,b7 a]ospace1 a]onautics1 or def5se1 
7,c7 biote*nology or ph>maceuticals1    
7,d7 electronics1 semiconductors1       
s(tw>e1 or comput] te*nology1  7,e7     
en]gy1 environm5t1 or clean te*nologies1
  7,f7 =e/ products or agricultural     
sci5ces1  7,g7 in=mation te*nology1     
communication te*nology1 digital m$ia1  
opto-electronics or photonics1  7,h7    
life sci5ces or m$ical sci5ces1  7,i7   
m>9e te*nology or aquaculture1  7,j7    
manufactur+1 process+1 or assembl+      
innovative te*nology products1  7,k7    
transportation1 or  7,l7 any o!r high   
te*nology trade or bus9ess z det]m9$ by 

! ,secret>y4  7d7 ,qualifi$ inve/or ,=  
purposes ( ?is section-- 7#a7 ,9 g5]al  
,! t]m qualifi$ inve/or means an        
accr$it$ inve/or1 z def9$ by !          
,securities & ,ex*ange ,commission1     
inve/or network1 or inve/or fund :o     
review new or propos$ bus9esses =       
pot5tial inve/m5t4  7#b7 ,inve/or       
network ,! t]m inve/or network means a  
gr\p ( accr$it$ inve/ors organiz$ = !   
sole purpose ( mak+ qualifi$ equity     
inve/m5ts4  7#c7 ,inve/or fund  7,a7 ,9 
g5]al ,! t]m inve/or fund means a       
corporation t = ! applicable taxable ye>
 is treat$ z an ,s corporation or a     
g5]al p>tn]%ip1 limit$ p>tn]%ip1 limit$ 
liability p>tn]%ip1 tru/1 or limit$     
liability company & :i* = ! applicable  
taxable ye> is n tax$ z a corporation4  
7,b7 ,allocation ( cr$it  7i7 ,9 g5]al  
,except z provid$ 9 clause 7ii71 ! cr$it
 all[$ "u subsection 7a7 %all be        
allocat$ to ! %>ehold]s or p>tn]s ( !   
inve/or fund 9 proportion to _! own]%ip 
int]e/ or z specifi$ 9 ! fund's         

organizational docum5ts4  7ii7 ,s+le    
memb] limit$ liability company ,if !    
inve/or fund is a s+le memb] limit$     
liability company t is disreg>d$ z an   
entity sep>ate f its own]1 ! cr$it all[$
 "u subsection 7a7 may be claim$ by su* 
limit$ liability company's own]1 if su* 
own] is a p]son subject to ! tax "u ?is 
title4  7#d7 ,exclusion ,! t]m qualifi$ 
inve/or does n include-- 7,a7 a p]son   
controll+ at lea/ #ej p]c5t ( ! qualifi$
 small bus9ess entity1  7,b7 an employee
 ( su* entity1 or  7,c7 any bank1 bank &
 tru/ company1 insurance company1 tru/  
company1 national bank1 sav+s           
association or build+ & loan association
 = activities t are a "p ( its normal   
c\rse ( bus9ess4  7e7 ,national         
limitation on am\nt ( inve/m5ts         
designat$  7#a7 ,9 g5]al ,!re is an     
angel inve/m5t tax cr$it limitation (   
#ajj1jjj1jjj = ea* ye> ( ! inve/m5t     
p]iod4  7#b7 ,inve/m5t p]iod ,! inve/m5t
 p]iod is cal5d> ye>s #bjae ?r\gh #bjai4
  7#c7 ,allocation ( limitation ,!      

limitation "u p>agraph 7#a7 %all be     
allocat$ by ! ,secret>y among qualifi$  
small bus9ess entities select$ by !     
,secret>y4  7#d7 ,c>ryov] ( unus$       
limitation ,if ! angel inve/m5t tax     
cr$it limitation = any cal5d> ye> exce$s
 ! aggregate am\nt allocat$ "u p>agraph 
7#c7 = su* ye>1 su* limitation = !      
succe$+ cal5d> ye> %all be increas$ by !
 am\nt ( su* excess4 ,no am\nt may be   
c>ri$ "u ! prec$+ s5t5ce to any cal5d>  
ye> aft] #bjbb4  7f7 ,application ) o!r 
cr$its  7#a7 ,bus9ess cr$it treat$ z "p 
( g5]al bus9ess cr$it ,except z provid$ 
9 p>agraph 7#b71 ! cr$it :i* w\ld be    
all[$ "u subsection 7a7 = any taxable   
ye> 7det]m9$ )\t reg>d to ?is           
subsection7 %all be treat$ z a cr$it    
li/$ 9 section #ch7;b7 = su* taxable ye>
 7& n all[$ "u subsection 7a774  7#b7   
,p]sonal cr$it  7,a7 ,9 g5]al ,9 ! case 
( an individual :o elects ! application 
( ?is p>agraph1 = purposes ( ?is title1 
! cr$it all[$ "u subsection 7a7 = any   
taxable ye> 7det]m9$ aft] application ( 

p>agraph 7#a77 %all be treat$ z a cr$it 
all[able "u subp>t ,a = su* taxable ye>4
  7,b7 ,c>ry=w>d ( unus$ cr$it ,if !    
cr$it all[able "u subsection 7a7 by     
reason ( subp>agraph 7,a7 exce$s !      
limitation impos$ by section #bf7;a7 =  
su* taxable ye>1 r$uc$ by ! sum ( !     
cr$its all[able "u subp>t ,a 7o!r ?an   
?is section7 = su* taxable ye>1 su*     
excess %all be c>ri$ to ea* ( ! succe$+ 
#bj taxable ye>s to ! ext5t t su* unus$ 
cr$it may n be tak5 into acc\nt "u      
subsection 7a7 by reason ( subp>agraph  
7,a7 = a prior taxable ye> because ( su*
 limitation4  7g7 ,special rules  7#a7  
,relat$ p>ties ,= purposes ( ?is        
section-- 7,a7 ,9 g5]al ,all relat$     
p]sons %all be treat$ z #a p]son4  7,b7 
,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;b74  7#b7 ,basis ,= purposes ( ?is
 subtitle1 ! basis ( any inve/m5t )     
respect to :i* a cr$it is all[able "u   

?is section %all be r$uc$ by ! am\nt (  
su* cr$it s all[$4 ,?is subsection %all 
n apply = purposes ( sections #abjb1    
#acig;,b1 & #adjj;,b4  7#c7 ,recapture  
,! ,secret>y %all1 by regulations1      
provide = recaptur+ ! b5efit ( any cr$it
 all[able "u subsection 7a7 ) respect to
 any qualifi$ equity inve/m5t :i* is    
held by ! taxpay] less ?an #c ye>s1     
except t no b5efit %all be recaptur$ 9 !
 case (-- 7,a7 transf] ( su* inve/m5t by
 reason ( ! dea? ( ! taxpay]1  7,b7     
transf] betwe5 sp\ses1  7,c7 transf]    
incid5t to ! divorce 7z def9$ 9 section 
#ajda7 ( su* taxpay]1 or  7,d7 a        
transaction to :i* section #cha7;a7     
applies 7relat+ to c]ta9 acquisitions ( 
! assets ( "o corporation by ano!r      
corporation74  7h7 ,regulations ,=      
purposes ( ?is section-- 7#a7 ,9 g5]al  
,n lat] ?an #ahj days aft] ! date (     
enactm5t ( ?is section1 ! ,secret>y %all
 prescribe regulations to-- 7,a7 c]tify 
qualifi$ small bus9ess entities1  7,b7  
prev5t ! abuse ( ! purposes ( ?is       

section1  7,c7 impose appropriate       
report+ requirem5ts & metric = measur+ !
 effectiv5ess ( ! tax cr$it1 includ+ !  
impact ( ! tax cr$it on dome/ic job     
creation1 &  7,d7 apply ! provisions (  
?is section to newly =m$ entities4  7#b7
 ,c]tification & selection crit]ia ,!   
regulations = c]tify+ qualifi$ small    
bus9ess entities %all require ! foll[+3 
7,a7 ,c]tification  7i7 ,application =  
tax cr$it ,ea* applicant = c]tification 
z a qualifi$ small bus9ess entity %all  
submit an application conta9+ su*       
in=mation z ! ,secret>y may require4    
7ii7 ,"t to meet crit]ia = c]tification 
,ea* applicant = c]tification %all h #a 
ye> f ! date ( acceptance by ! ,secret>y
 ( ! application dur+ :i* to provide to 
! ,secret>y evid5ce t ! requirem5ts ( ! 
c]tification h be5 met4  7,b7 ,selection
 crit]ia ,9 det]m9+ :i* applicants to   
c]tify "u ?is p>agraph1 ! ,secret>y--   
7i7 %all take into consid]ation only ^? 
applicants :]e !re is a reasonable      
expectation ( comm]cial viability1 &    

7ii7 %all take into consid]ation :i*    
applicants-- 7,i7 w provide ! greate/   
dome/ic job creation 7bo? direct &      
indirect7 dur+ ! tax cr$it p]iod1 &     
7,,ii7 h ! greate/ pot5tial =           
te*nological innovation & comm]cial     
deploym5t4  4  7b7 ,cr$it made "p (     
g5]al bus9ess cr$it ,subsection 7b7 (   
section #ch ( ! ,int]nal ,rev5ue ,code (
 #aihf is am5d$ 9 p>agraph 7#ce71 by    
/rik+ plus1 9 p>agraph 7#cf71 by /rik+ !
 p]iod at ! end & ins]t+ 1 plus1 & by   
add+ at ! end ! foll[+ new p>agraph3    
7#cg7 ! portion ( ! angel inve/m5t tax  
cr$it to :i* section #cj;,e7f77#a7      
applies4  4  7c7 ,con=m+ am5dm5ts       
,section #ajaf7;a7 ( ! ,int]nal ,rev5ue 
,code ( #aihf is am5d$ by /rik+ & at !  
end ( p>agraph 7#cf71 by /rik+ ! p]iod  
at ! end ( p>agraph 7#cg7 & ins]t+ 1 &1 
& by ins]t+ aft] p>agraph 7#cg7 ! foll[+
 new p>agraph3  7#ch7 to ! ext5t provid$
 9 section #cj;,e7g77#b74  4  7d7       
,cl]ical am5dm5t ,! table ( sections =  
subp>t ,b ( "p ,,iv ( sub*apt] ,a (     

*apt] #a ( ! ,int]nal ,rev5ue ,code (   
#aihf is am5d$ by add+ at ! end ! foll[+
 new item3  ,sec4 #cj;,e4 ,angel        
inve/m5t tax cr$it4  4  7e7 ,effective  
date ,! am5dm5ts made by ?is section    
%all apply to inve/m5ts made aft]       
,decemb] #ca1 #bjac1 9 taxable ye>s end+
 aft] su* date4  7f7 ,,gao report ,n    
lat] ?an two ye>s aft] ! date ( enactm5t
 ( ?is ,act1 ! ,comptroll] ,g5]al ( !   
,unit$ ,/ates1 pursuant to an audit ( ! 
angel inve/m5t tax cr$it program        
e/abli%$ "u section #cj;,e ( ! ,int]nal 
,rev5ue ,code ( #aihf 7z add$ by        
subsection 7a771 %all report to         
,congress on su* program1 includ+-- 7#a7
 ! implem5tation ( ! regulations        
promulgat$ by ! ,secret>y1  7#b7 ! am\nt
 ( tax cr$its allocat$ to qualifi$ small
 bus9ess entities 9 ! prior ye>1 &  7#c7
 ! effectiv5ess ( ! tax cr$it 9 increas+
 dome/ic job creation by ! qualifi$     
small bus9esses t receive ! tax cr$it4  
#d4 ,p]man5t full exclusion applicable  
to qualifi$ small bus9ess /ock  7a7 ,9  

g5]al ,p>agraph 7#d7 ( section #abjb7;a7
 ( ! ,int]nal ,rev5ue ,code ( #aihf is  
am5d$ by /rik+ & be=e ,janu>y #a1 #bjad4
  7b7 ,con=m+ am5dm5ts  7#a7 ,section   
#abjb7;a7 ( su* ,code1 z am5d$ by       
subsection 7a71 is am5d$ by /rik+       
p>agraphs 7#b7 & 7#c7 & by r$esignat+   
p>agraph 7#d7 z p>agraph 7#b74  7#b7    
,section #abjb7;a77#b7 ( su* ,code1 z   
r$esignat$ by p>agraph 7#a71 is am5d$ by
 add+ & at ! end ( subp>agraph 7,a71 by 
/rik+ subp>agraph 7,b71 & by r$esignat+ 
subp>agraph 7,c7 z subp>agraph 7,b74    
7#c7 ,section #abbc7ac7 ( su* ,code is  
am5d$ by /rik+ #abjb7;a77#b714  7#d7 ,! 
head+ = section #abjb ( su* ,code is    
am5d$ by /rik+ ,p>tial exclusion = ga9 &
 ins]t+ ,exclusion ( c]ta9 ga94  7#e7 ,!
 item relat+ to section #abjb 9 ! table 
( sections = "p ,i ( sub*apt] ,p ( *apt]
 #a ( su* ,code is am5d$ by /rik+       
,p>tial exclusion = ga9 & ins]t+        
,exclusion ( c]ta9 ga94  7c7 ,effective 
date ,! am5dm5ts made by ?is section    
apply to /ock acquir$ aft] ,decemb] #ca1

 #bjac4  #e4 ,e/abli%m5t ( small bus9ess
 />tup sav+s acc\nts  7a7 ,9 g5]al      
,subp>t ,a ( "p ,i ( sub*apt] ,d ( *apt]
 #a ( ! ,int]nal ,rev5ue ,code ( #aihf  
is am5d$ by ins]t+ aft] section #djh;,a 
! foll[+ new section3  #djh;,b4 ,small  
bus9ess />tup sav+s acc\nts  7a7 ,g5]al 
rule ,except z provid$ 9 ?is section1 a 
,small ,bus9ess ,/>tup ,sav+s ,acc\nt   
%all be treat$ = purposes ( ?is title 9 
! same mann] z an individual retirem5t  
plan4  7b7 ,small bus9ess />tup sav+s   
acc\nt ,= purposes ( ?is title1 ! t]m   
,small ,bus9ess ,/>tup ,sav+s ,acc\nt   
means an individual retirem5t acc\nt 7z 
def9$ 9 section #dji7;a77 :i* is        
designat$ at ! "t ( e/abli%m5t ( ! plan 
z a ,small ,bus9ess ,/>tup ,sav+s       
,acc\nt4 ,su* designation %all be made 9
 su* mann] z ! ,secret>y may prescribe4 
7c7 ,treatm5t ( contributions  7#a7 ,no 
d$uction all[$ ,no d$uction %all be     
all[$ "u section #bai = a contribution  
to a ,small ,bus9ess ,/>tup ,sav+s      
,acc\nt4  7#b7 ,contribution limit  7,a7

 ,9 g5]al ,! aggregate am\nt (          
contributions = any taxable ye> to all  
,small ,bus9ess ,/>tup ,sav+s ,acc\nts  
ma9ta9$ = ! b5efit ( an individual %all 
n exce$ #aj1jjj4  7,b7 ,aggregate       
limitation ,! aggregate ( ! am\nts :i*  
may be tak5 into acc\nt "u subp>agraph  
7,a7 = all taxable ye>s ) respect to all
 ,small ,bus9ess ,/>tup ,sav+s ,acc\nts 
ma9ta9$ = ! b5efit ( an individual %all 
n exce$ #aej1jjj4  7,c7 ,co/-(-liv+     
adju/m5t ,! ,secret>y %all adju/        
annually ! #aj1jjj am\nt 9 subp>agraph  
7,a7 = increases 9 ! co/-(-liv+ at !    
same "t & 9 ! same mann] z adju/m5ts "u 
section #dae7;d72 except t ! base p]iod 
%all be ! cal5d> qu>t] beg9n+ ,july #a1 
#bjad1 & any increase :i* is n a        
multiple ( #ejj %all be r\nd$ to ! next 
l[e/ multiple ( #ejj4  7#c7             
,contributions p]mitt$ aft] age #gj     
,contributions to a ,small ,bus9ess     
,/>tup ,sav+s ,acc\nt may be made ev5   
aft] ! individual = :om ! acc\nt is     
ma9ta9$ has atta9$ age #gj4  7#d7       

,rollov]s f retirem5t plans n all[$ ,a  
taxpay] %all n be all[$ to make a       
qualifi$ rollov] contribution to a      
,small ,bus9ess ,/>tup ,sav+s ,acc\nt f 
any qualifi$ retirem5t plan 7z def9$ 9  
section #digd7;c774  7d7 ,di/ribution   
rules ,= purposes ( ?is title-- 7#a7    
,qualifi$ di/ributions  7,a7 ,9 g5]al   
,any qualifi$ di/ribution f a ,small    
,bus9ess ,/>tup ,sav+s ,acc\nt %all n be
 includible 9 gross income4  7,b7       
,qualifi$ di/ribution def9$ ,= purposes 
( ?is subsection1 ! t]m qualifi$        
di/ribution means any paym5t or         
di/ribution made = op]at+ capital1 !    
pur*ase ( equipm5t or facilities1       
m>ket+1 tra9+1 incorporation1 & acc\nt+ 
fees4  7,c7 ,limitations on qualifi$    
di/ributions ,all qualifi$ di/ributions 
f a ,small ,bus9ess ,/>tup ,sav+s       
,acc\nt-- 7i7 %all be limit$ to a s+le  
bus9ess1 &  7ii7 mu/ be disburs$ n lat] 
?an ! la/ day ( ! #e? taxable ye> beg9n+
 aft] ! initial disbursem5t4  7#b7      
,nonqualifi$ di/ributions  7,a7 ,9 g5]al

 ,9 apply+ section #gb to any           
di/ribution f a ,small ,bus9ess ,/>tup  
,sav+s ,acc\nt :i* is n a qualifi$      
di/ribution1 su* di/ribution %all be    
treat$ z made f contributions to !      
,small ,bus9ess ,/>tup ,sav+s ,acc\nt to
 ! ext5t t su* di/ribution1 :5 add$ to  
all previ\s di/ributions f ! ,small     
,bus9ess ,/>tup ,sav+s ,acc\nt1 does n  
exce$ ! aggregate am\nt ( contributions 
to ! ,small ,bus9ess ,/>tup ,sav+s      
,acc\nt4  7,b7 ,treatm5t ( am\nts rema9+
 9 acc\nt ,any rema9+ am\nt 9 a ,small  
,bus9ess ,/>tup ,sav+s ,acc\nt foll[+ ! 
date describ$ 9 p>agraph 7#a77;,a77ii7  
%all be treat$ z di/ribut$ dur+ !       
taxable ye> foll[+ su* date & su*       
di/ribution %all n be treat$ z a        
qualifi$ di/ribution4  4  7b7 ,excess   
contributions ,section #digc ( !        
,int]nal ,rev5ue ,code ( #aihf is am5d$ 
by add+ at ! end ! foll[+ new           
subsection3  7h7 ,excess contributions  
to small bus9ess />tup sav+s acc\nts ,= 
purposes ( ?is section1 9 ! case (      

contributions to all ,small ,bus9ess    
,/>tup ,sav+s ,acc\nts 7)9 ! mean+ (    
section #djh;,b7b77 ma9ta9$ = ! b5efit (
 an individual1 ! t]m excess            
contributions means ! sum (-- 7#a7 !    
excess 7if any7 (-- 7,a7 ! am\nt        
contribut$ to su* acc\nts = ! taxable   
ye>1 ov]  7,b7 ! am\nt all[able z a     
contribution "u section #djh;,b7c77#b7 =
 su* taxable ye>1 &  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 (-- 7i7 
! maximum am\nt all[able z a            
contribution "u section #djh;,b7c77#b7 =
 su* taxable ye>1 ov]  7ii7 ! am\nt     
contribut$ to su* acc\nts = su* taxable 
ye>4  4  7c7 ,con=m+ am5dm5t ,! table ( 
sections = subp>t ,a ( "p ,i ( sub*apt] 
,d ( *apt] #a ( ! ,int]nal ,rev5ue ,code
 ( #aihf is am5d$ by ins]t+ aft] ! item 
relat+ to section #djh;,a ! foll[+ new  
item3  ,sec4 #djh;,b4 ,small ,bus9ess   
,/>tup ,sav+s ,acc\nts4  4  7d7         

,effective date ,! am5dm5ts made by ?is 
section %all apply to taxable ye>s      
beg9n+ aft] ,decemb] #ca1 #bjac4