,i  #aad? ,,congress  #b;d ,session  ,h4
 ,r4 #dfjh  ,,9 ,,! ,,h\se ,,(          
,,repres5tatives  ,febru>y #bd1 #bjaf   
,mr4 ,israel introduc$ ! foll[+ bill2   
:i* 0 ref]r$ to ! ,committee on ,ways & 
,means  ,a ,,bill  ,to am5d ! ,int]nal  
,rev5ue ,code ( #aihf to e/abli% small  
bus9ess sav+s acc\nts4  #a4 ,%ort title 
,?is ,act may be cit$ z ! ,,save =      
,small ,bus9esses ,act or ! ,sav+s      
,acc\nts = a ,v>iable ,economy = ,small 
,bus9esses ,act4  #b4 ,small ,bus9ess   
,sav+s ,acc\nts  7a7 ,9 g5]al ,*apt] #gg
 ( ! ,int]nal ,rev5ue ,code ( #aihf is  
am5d$ by add+ at ! end ! foll[+ new     
section3  #gebi4 ,small ,bus9ess ,sav+s 
,acc\nts  7a7 ,9 g5]al ,any eligible    
small bus9ess may ent] into an agreem5t 
) ! ,secret>y "u ?is section to e/abli% 
a small bus9ess sav+s acc\nt ) respect  
to su* bus9ess "u t]ms :i* meet !       
requirem5ts ( ?is section4  7b7 ,small  
bus9ess sav+s acc\nts ,= purposes ( ?is 
section1 ! t]m small bus9ess sav+s      
acc\nt means a tax pref]r$ sav+s acc\nt 

:i* is designat$ at ! "t ( e/abli%m5t ( 
! plan z a small bus9ess sav+s acc\nt4  
,su* designation %all be made 9 su*     
mann] z ! ,secret>y may by regulation   
prescribe4  7c7 ,contributions  7#a7    
,d$uction ,!re %all be all[$ z a        
d$uction an am\nt equal to !            
contributions to a small bus9ess sav+s  
acc\nt = ! taxable ye>4  7#b7           
,limitation ,! aggregate am\nt (        
contributions = any taxable ye> to all  
small bus9ess sav+s acc\nts ma9ta9$ = ! 
b5efit ( an eligible small bus9ess %all 
n exce$ an am\nt equal to #aj p]c5t ( ! 
gross pr(its ( ! bus9ess = ! prec$+     
taxable ye>4  7d7 ,di/ributions  7#a7 ,9
 g5]al ,any qualifi$ di/ribution f a    
small bus9ess sav+s acc\nt %all n be    
includible 9 gross income4  7#b7        
,inclusion ( nonqualifi$ di/ributions   
,any am\nts di/ribut$ out ( a small     
bus9ess sav+s acc\nt t are n qualifi$   
di/ributions %all be includ$ 9 gross    
income = ! taxable ye> ( ! di/ribution4 
7#c7 ,qualifi$ di/ribution ,= purposes (

 ?is subsection-- 7,a7 ,9 g5]al ,! t]m  
qualifi$ di/ribution means any am\nt--  
7i7 di/ribut$ f a small bus9ess sav+s   
acc\nt dur+ a specifi$ p]iod ( economic 
h>d%ip1 &  7ii7 ! di/ribution ( :i* is  
c]tifi$ by ! taxpay] z "p ( a plan :i*  
provides = ! re9ve/m5t ( su* di/ribution
 = ! fund+ ( work] hir+ or f9ancial     
/abilization = ! purposes ( job ret5tion
 or creation4  7,b7 ,specifi$ p]iod (   
economic h>d%ip ,! t]m specifi$ p]iod ( 
economic h>d%ip means-- 7i7 any #a-ye>  
p]iod beg9n+ imm$iately aft] ! end ( any
 #c consecutive qu>t]s dur+ :i* ! annual
 rate ( real gross dome/ic product 7z   
det]m9$ by ! ,bureau ( ,economic        
,analysis ( ! ,dep>tm5t ( ,comm]ce7     
decreases1 or  7ii7 any p]iod1 9 no ev5t
 %ort] ?an #a ye>1 specifi$ by !        
,adm9i/rator ( ! ,small ,bus9ess        
,adm9i/ration = purposes ( ?is section4 
7,c7 ,f$]ally decl>$ disa/] areas ,!    
,adm9i/rator ( ! ,small ,bus9ess        
,adm9i/ration may specify a p]iod "u    
subp>agraph 7,b77ii7 ) respect to a     

specifi$ area 9 ! case ( an area det]m9$
 by ! ,presid5t to w>rant assi/ance f ! 
,f$]al ,gov]nm5t "u ! ,rob]t ,t4 ,/af=d 
,disa/] ,relief & ,em]g5cy ,assi/ance   
,act 7z 9 effect on ! date ( ! enactm5t 
( ! ,,save = ,small ,bus9esses ,act74   
7,d7 ,limitation ,! ,adm9i/rator ( !    
,small ,bus9ess ,adm9i/ration %all1 9   
consultation ) ! ,secret>y1 = ea*       
specifi$ p]iod ( economic h>d%ip e/abli%
 a di/ribution limitation = qualifi$    
di/ributions f eligible small bus9ess   
acc\nts ) respect to su* p]iod4 ,!      
aggregate qualifi$ di/ributions = any   
su* p]iod f all acc\nts ) respect to an 
eligible small bus9ess %all n exce$ su* 
limitation4  7,e7 ,am\nts n us$ =       
re9ve/m5t ,any di/ribution n us$ 9 !    
mann] c]tifi$ "u subp>agraph 7,a77ii7   
%all be treat$ z a di/ribution o!r ?an a
 qualifi$ di/ribution 9 ! taxable ye> ( 
su* di/ribution4  7,f7 ,eight-ye> rule  
,any am\nt contribut$ to a small bus9ess
 sav+s acc\nt 7& any e>n+s attributable 
!reto71 once di/ribut$1 %all n be treat$

 z a qualifi$ di/ribution unless su*    
di/ribution is made n lat] ?an #h ye>s  
aft] ! date ( su* contribution4 ,=      
purposes ( ! prec$+ s5t5ce1 am\nts 7& ! 
e>n+s attributable !reto7 %all be treat$
 z di/ribut$ on a fir/-9 fir/-out basis4
  7e7 ,tax treatm5t ( acc\nt ,any small 
bus9ess sav+s acc\nt is exempt f        
taxation "u ?is subtitle ,a unless su*  
acc\nt has ceas$ to be a small bus9ess  
sav+s acc\nt4 ,not)/&+ ! prec$+ s5t5ce1 
any su* acc\nt is subject to ! taxes    
impos$ by section #eaa 7relat+ to       
imposition ( tax on unrelat$ bus9ess    
income ( *>itable1 etc4 organizations74 
7f7 ,eligible small bus9ess ,= purposes 
( ?is section-- 7#a7 ,9 g5]al ,! t]m    
eligible small bus9ess means1 ) respect 
to any cal5d> ye>1 any p]son if ! annual
 av]age numb] ( full-"t employees       
employ$ by su* p]son dur+ ! prec$+      
cal5d> ye> 0 #ej or few]4 ,= purposes ( 
! prec$+ s5t5ce1 a prec$+ cal5d> ye> may
 be tak5 into acc\nt only if ! p]son 0 9
 exi/5ce ?r\gh\t ! ye>4  7#b7 ,full-"t  

employees  7,a7 ,9 g5]al ,! t]m full-"t 
employee means1 ) respect to any ye>1 an
 employee :o is employ$ on av]age at    
lea/ #dj h\rs ( s]vice p] week4  7,b7   
,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#c7 ,/>tups1 controll$ gr\ps1 
& pr$ecessors ,rules simil> to ! rules (
 subp>agraphs 7,b7 & 7,d7 ( section     
#bbj7;c77#d7 %all apply = purposes ( ?is
 subsection4  7g7 ,effect ( pl$g+ acc\nt
 z security ,if1 dur+ any taxable ye> ( 
! eligible small bus9ess = ^: b5efit an 
acc\nt is e/abli%$1 ! acc\nt or any     
portion !re( is pl$g$ z security = a    
loan1 ! portion s pl$g$ %all be treat$ z
 di/ribut$ 9 a di/ribution o!r ?an a    
qualifi$ di/ribution4  4  7b7 ,small    
bus9ess sav+s acc\nt programs  7#a7 ,9  
g5]al ,! ,secret>y ( ! ,treasury %all   

e/abli% a program to adm9i/] small      
bus9ess sav+s acc\nts "u section #gebi (
 ! ,int]nal ,rev5ue ,code ( #aihf4  7#b7
 ,acc\nt /&>ds ,! ,secret>y %all e/abli%
 m9imum /&>ds = small bus9ess sav+s     
acc\nts & %all e/abli% acc\nts )9 !     
,dep>tm5t ( ! ,treasury or ent] into    
agreem5ts ) tru/ees t meet ^! /&>ds to  
adm9i/] su* acc\nts4 ,9 e/abli%+ su*    
/&>ds & mak+ su* agreem5ts ! ,secret>y  
%all1 to ! ext5t practicable1 seek to   
m9imize fees1 m9imize risk ( loss (     
pr9cipal1 & ensure a range ( inve/m5t   
risk options available to acc\nt        
b5efici>ies4  7c7 ,excess contributions 
,section #digc ( ! ,int]nal ,rev5ue     
,code ( #aihf is am5d$ by add+ at ! end 
! foll[+ new subsection3  7i7 ,excess   
contributions to small bus9ess sav+s    
acc\nts ,= purposes ( ?is section1 9 !  
case ( contributions to all small       
bus9ess sav+s acc\nts 7)9 ! mean+ (     
section #gebi7;b77 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 #gebi7;c77#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 #gebi7;c77#b7 = 
su* taxable ye>1 ov]  7ii7 ! am\nt      
contribut$ to su* acc\nts = su* taxable 
ye>4  4  7d7 ,cl]ical am5dm5t ,! table (
 sections = *apt] #gg ( ! ,int]nal      
,rev5ue ,code ( #aihf is am5d$ by add+  
at ! end ! foll[+ new item3  ,sec4      
#gebi4 ,small ,bus9ess ,sav+s ,acc\nts4 
4  7e7 ,effective date ,! am5dm5ts made 
by ?is section %all apply to taxable    
ye>s beg9n+ aft] ! date ( ! enactm5t (  
?is ,act4