,,iii  ,calendar ,no4 #bbf  #aadth      
,,congress  #ast ,session  ,s4 ,,res4   
#beb  ,,in ,,the ,,senate ,,of ,,the    
,,united ,,states  ,september #ae1 #bjae
 ,mr4 ,vitter1 from the ,committee on   
,small ,business and ,entrepreneurship  
of the ,senate1 reported the following  
original resolution2 which was placed on
 the calendar  ,,resolution  ,expressing
 the sense of the ,committee on ,small  
,business and ,entrepreneurship of the  
,senate relating to easing the burden of
 ,federal tax compliance on small       
businesses4  ,whereas ,american small   
businesses face major obstacles         
complying with their ,federal tax       
obligations2 ,whereas the complexity of 
the ,federal tax code unfairly penalizes
 small businesses2 ,whereas such        
complexity requires small business      
owners to spend significant amounts of  
time1 money1 and resources complying    
with their tax obligations and less time
 operating their business2 ,whereas     
,congress has exacerbated these         

challenges for ,america's small         
businesses by failing to update the tax 
code in a manner that properly reflects 
current circumstances2 ,whereas tax     
policy should also promote increased    
savings by ,american citizens to be able
 to afford the costs of living deeper   
into old age2 ,whereas employee stock   
ownership plans help small businesses   
offer economic incentives to employees  
and help employees save more for their  
retirements via investments in their    
employing companies2 ,whereas tax policy
 should support small businesses in     
providing benefit packages to their     
employees to be competitive with larger 
employers for the best talent2 ,whereas 
the successful research and development 
tax credit has been used to incentivize 
private firms to invest in research and 
development1 and private investment     
leads to spillover effects that can have
 a broad public good through the        
creation of new products1 the           
development of new processes1 and the   

launching of new industries2 ,whereas   
while the research and development tax  
credit is essential for our innovators1 
it is not accessible to many small      
businesses and startups--per the        
,government ,accountability ,office1    
over half of the credit goes to firms   
with #a1jjj1jjj1jjj or more in receipts2
 ,whereas1 according to the             
,congressional ,research ,service1      
numerous commercially successful        
innovations originated in small1        
fledgling firms that could not access   
the research and development credit2    
,whereas1 if ,congress made the research
 and development tax credit more        
available to small businesses and       
startups1 thousands of innovative small 
firms could claim the credit1 boosting  
their capacity to invest in innovation  
and job creation2 and ,whereas prudent  
changes to the structure of the ,federal
 tax code would ease the burden of tax  
compliance1 allowing small businesses to
 put more money back into their         

business1 community1 and the economy3   
,now1 therefore1 be it  ,that it is the 
sense of the ,committee on ,small       
,business and ,entrepreneurship that the
 ,senate should enact the following3  ,i
 ,small business tax reform  #aja4      
,expansion of cash accounting threshold 
7a7 ,in general  7#a7 ,in general       
,paragraph 7#c7 of section #ddh7;b7 of  
the ,internal ,revenue ,code of #aihf is
 amended by striking #e1jjj1jjj in the  
text and in the heading and inserting   
#be1jjj1jjj4  7#b7 ,conforming          
amendments ,section #ddh7;c7 of such    
,code is amended--  7,a7 by striking    
#e1jjj1jjj each place it appears in the 
text and in the heading of paragraph    
7#a7 and inserting #be1jjj1jjj1 and     
7,b7 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 
#bjae1 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   
#bjad 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 ,exemption from inventory           
requirement ,section #dga of the        
,internal ,revenue ,code of #aihf is    
amended by redesignating subsection 7c7 
as subsection 7d7 and by inserting after
 subsection 7b7 the following new       
subsection3  7c7 ,section not to apply  
to certain cash method taxpayers ,if a  
taxpayer-- 7#a7 would otherwise be      
required to use inventories under this  
section for any taxable year1 but  7#b7 
the taxpayer meets the gross receipts   
test of section #ddh7;b7 for the taxable

 year and is eligible and elects to use 
the cash receipts and disbursements     
method of accounting for the taxable    
year1  then the requirement to use      
inventories shall not apply to the      
taxpayer for the taxable year4  4  7c7  
,effective date and special rule  7#a7  
,in general ,the amendments made by this
 section shall apply to taxable years   
beginning after ,december #ca1 #bjad4   
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 and  7,b7 such change shall be
 treated as made with the consent of the
 ,secretary of the ,treasury4  #ajb4    
,modification of ,safe ,harbor for      
,expensing of ,acquisition or           
,production ,costs of ,tangible         
,property  7a7 ,requirement to ,modify  
,safe ,harbor ,the ,secretary of the    
,treasury or his delegate shall1 within 

#ahj days after the date of enactment of
 this ,act1 modify ,treasury            
,regulations section #a4bfc7;a7-#a7;f7  
by--  7#a7 increasing the amount of the 
de minimis safe harbor for taxpayers    
without applicable financial statements 
from #ejj to #b1ejj1  7#b7 requiring    
adequate records showing the dollar     
amount being expensed in lieu of        
accounting procedures in place at the   
beginning of the taxable year1 and  7#c7
 modifying the definition of applicable 
financial statement to include reviewed 
financial statements4  7b7 ,effective   
date ,the modifications required by     
subsection 7a7 shall apply to taxable   
years beginning after ,december #ca1    
#bjad4  #ajc4 ,removal of computer      
equipment from listed property  7a7 ,in 
general ,section #bhj;,f7d77#d77;,a7 of 
the ,internal ,revenue ,code of #aihf is
 amended by inserting and at the end of 
clause 7iii7 and by striking clause     
7iv74  7b7 ,conforming amendment        
,section #bhj;,f7d77#d7 of the ,internal

 ,revenue ,code of #aihf is amended by  
striking subparagraph 7,b7 and by       
redesignating subparagraph 7,c7 as      
subparagraph 7,b74  7c7 ,effective date 
,the amendments made by this section    
shall apply to taxable years beginning  
after the date of the enactment of this 
,act4  #ajd4 ,deduction for health      
insurance costs in computing            
self-employment taxes  7a7 ,in general  
,paragraph 7#d7 of section #afb7l7 of   
the ,internal ,revenue ,code of #aihf is
 amended by striking for taxable years  
beginning before ,january #a1 #bjaj1 or 
after ,december #ca1 #bjaj and inserting
 for taxable years beginning before     
,january #a1 #bjae44  7b7 ,effective    
date ,the amendment made by this section
 shall apply to taxable years beginning 
after ,december #ca1 #bjad4  #aje4      
,modification of rules relating to the  
termination of partnerships and ,s      
corporations  7a7 ,no termination of    
partnership on sale or exchange of      
assets  7#a7 ,in general ,section       

#gjh7;b77#a7 of the ,internal ,revenue  
,code of #aihf is amended by striking   
only if and all that follows and        
inserting only if no part of any        
business1 financial operation1 or       
venture of the partnership continues to 
be carried on by any of its partners in 
a partnership44  7#b7 ,conforming       
amendments  7,a7 ,section               
#afh7;i77#g77;,b7 of such ,code is      
amended by striking the last sentence4  
7,b7 ,section #gdc7;e7 of such ,code is 
amended by striking paragraph 7#d74     
7,c7 ,section #ggd of such ,code is     
amended by striking subsection 7c74  7b7
 ,no termination of ,s corporation      
status due to excessive passive         
investment income ,paragraph 7#c7 of    
section #acfb7;d7 of the ,internal      
,revenue ,code of #aihf is amended by   
adding at the end the following new     
subparagraph3  7,d7 ,termination ,this  
paragraph shall not apply to taxable    
years ending after the date of the      
enactment of this subparagraph4  4  ,,ii

 ,provisions related to the ,internal   
,revenue ,service  #bja4 ,inflation     
adjustments for certain provisions  7a7 
,in general ,chapter #gg of the         
,internal ,revenue ,code of #aihf is    
amended by adding at the end the        
following new section3  #gebi4          
,inflation adjustments  7a7 ,in general 
,in the case of any taxable year        
beginning in a calendar year after      
#bjae1 each of the specified dollar     
amounts 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          
determined by substituting calendar year
 #bjad for calendar year #aiib in       
subparagraph 7,b7 thereof4  7b7         
,specified dollar amounts ,for purposes 
of subsection 7a71 the specified dollar 
amounts are-- 7#a7 the #ej1jjj amount in
 section #gi7;a77#a71  7#b7 each of the 
#e1bej amounts in section #abg7;a77#b71 

7#c7 each of the #ejj amounts in        
paragraphs 7#aa77;,a71 7#aa77;,b71 and  
7#ab7 of section #agj7;f71  7#d7 the    
#e1jjj amount in section                
#agj7;f77#aa77;,c71  7#e7 the           
#aj1jjj1jjj amount in section           
#bfc;,a7b77#b71  7#f7 each of the dollar
 amounts in section #bgd7;b77#a71  7#g7 
each of the #djj amounts in section     
#bgd7;j71  7#h7 the #a1fjj amount in    
section #bgd7;j77#b77;,b71  7#i7 the    
#aj1jjj1jjj amount in section           
#abjb7;b77#a71  7#aj7 each of the       
#ej1jjj1jjj amounts in section          
#abjb7;d77#a71  7#aa7 the #ej1jjj amount
 in section #abdd7;b77#a71 and  7#ab7   
the #a1jjj1jjj in section               
#abdd7;c77#c77;,a74  7c7 ,rounding  7#a7
 ,any increase determined under         
paragraph 7#e71 7#i71 or 7#aj7 of       
subsection 7b7 shall be rounded to the  
nearest multiple of #ajj1jjj4  7#b7 ,any
 increase determined under paragraph    
7#a71 7#d71 7#aa71 or 7#ab7 of          
subsection 7b7 shall be rounded to the  

nearest multiple of #a1jjj4  7#c7 ,any  
increase determined under paragraph 7#b7
 of subsection 7b7 shall be rounded to  
the nearest multiple of #ejj4  7#d7 ,any
 increase determined under paragraph    
7#c71 7#g71 or 7#h7 of subsection 7b7   
shall be rounded to the nearest multiple
 of #ajj4  7#e7 ,any increase determined
 under paragraph 7#f7 of subsection 7b7 
shall be rounded to the nearest multiple
 of #e4  4  7b7 ,conforming amendments  
7#a7 ,section #abjb7;b77#c7 of such     
,code is amended by striking paragraph  
7#a77;,a7 shall be applied by           
substituting #e1jjj1jjj for #aj1jjj1jjj 
and inserting the amount under paragraph
 7#a77;,a7 shall be #ej percent of such 
dollar amount 7determined without regard
 to this paragraph74  7#b7 ,section     
#abdd7;b77#b7 of such ,code is amended  
by striking #ajj1jjj and inserting #bjj 
percent of the amount under paragraph   
7#a74  7c7 ,clerical amendment ,the     
table of sections for chapter #gg of    
such ,code is amended by adding at the  

end the following new item3  ,sec4      
#gebi4 ,inflation adjustments4  4  7d7  
,effective date ,the amendments made by 
this section shall apply to taxable     
years beginning after the date of the   
enactment of this ,act4  #bjb4 ,report  
on improvements to customer service ,not
 later than ,june #cj1 #bjaf1 the       
,commissioner of ,internal ,revenue     
shall submit to the ,committee on ,small
 ,business and ,entrepreneurship of the 
,senate1 the ,committee on ,finance of  
the ,senate1 and the ,committee on ,ways
 and ,means of the ,house of            
,representatives a report detailing     
specific ways to improve customer       
service to small businesses1 including  
objectively measurable goals for how to 
reduce response times4  #bjc4 ,return   
due date modifications  7a7 ,new due    
date for partnership form #ajfe1 ,s     
corporation form #aabj,s1 and ,c        
corporation form #aabj  7#a7            
,partnerships  7,a7 ,in general ,section
 #fjgb of the ,internal ,revenue ,code  

of #aihf is amended by adding at the end
 the following new subsection3  7f7     
,returns of partnerships ,returns of    
partnerships under section #fjca made on
 the basis of the calendar year shall be
 filed on or before the #aeth day of    
,march following the close of the       
calendar year1 and such returns made on 
the basis of a fiscal year shall be     
filed on or before the #aeth day of the 
third month following the close of the  
fiscal year4  4  7,b7 ,conforming       
amendment ,section #fjgb7;a7 of such    
,code is amended by striking #fjag1 or  
#fjca and inserting or #fjag4  7#b7 ,s  
corporations  7,a7 ,in general ,so much 
of subsection 7b7 of #fjgb of such ,code
 as precedes the second sentence thereof
 is amended to read as follows3  7b7    
,returns of certain corporations        
,returns of ,s corporations under       
sections #fjab and #fjcg made on the    
basis of the calendar year shall be     
filed on or before the #cast day of     
,march following the close of the       

calendar year1 and such returns made on 
the basis of a fiscal year shall be     
filed on or before the last day of the  
third month following the close of the  
fiscal year4  4  7,b7 ,conforming       
amendments  7i7 ,section #acfb7;b7 of   
such ,code is amended--  7,i7 by        
striking #aeth each place it appears and
 inserting last1  7,,ii7 by striking    
#ba_/b each place it appears and        
inserting #c1 and  7,,iii7 by striking  
#b months and #ae days in paragraph 7#d7
 and inserting #c months4  7ii7 ,section
 #acfb7;d77#a77;,c77i7 of such ,code is 
amended by striking #aeth and inserting 
last4  7iii7 ,section                   
#acfb7;d77#a77;,c77ii7 of such ,code is 
amended by striking such #aeth day and  
inserting the last day of the #c;d month
 thereof4  7#c7 ,conforming amendments  
relating to ,c corporations  7,a7       
,section #agj7;a77#b77;,b7 of such ,code
 is amended by striking third month and 
inserting #dth month4  7,b7 ,section    
#efc of such ,code is amended by        

striking third month each place it      
appears and inserting #dth month4  7,c7 
,section #aced7;d77#a77;,b77i7 of such  
,code is amended by striking #c;d month 
and inserting #dth month4  7,d7         
,subsection 7a7 and 7c7 of section #fafg
 of such ,code are each amended by      
striking third month and inserting #dth 
month4  7,e7 ,section #fdbe7;a77#a7 of  
such ,code is amended by striking third 
month and inserting #dth month4  7,f7   
,subsections 7b77#b77;,a71 7g77#c71 and 
7h77#a7 of section #ffee of such ,code  
are each amended by striking #crd month 
and inserting #dth month4  7#d7         
,effective date ,the amendments made by 
this subsection shall apply to returns  
for taxable years beginning after       
,december #ca1 #bjae4  7b7 ,modification
 of due dates by regulation ,in the case
 of returns for taxable years beginning 
after ,december #ca1 #bjac1 the         
,secretary of the ,treasury or the      
,secretary's delegate shall modify      
appropriate regulations to provide as   

follows3  7#a7 ,the maximum extension   
for the returns of partnerships filing  
,form #ajfe shall be a #f-month period  
beginning on the due date for filing the
 return 7without regard to any          
extensions74  7#b7 ,the maximum         
extension for the returns of trusts and 
estates filing ,form #ajda shall be a   
#e-month period beginning on the due    
date for filing the return 7without     
regard to any extensions74  7#c7 ,the   
maximum extension for the returns of    
employee benefit plans filing ,form     
#eejj shall be an automatic #c-month    
period beginning on the due date for    
filing the return 7without regard to any
 extensions74  7#d7 ,the maximum        
extension for the ,forms #iij 7series7  
returns of organizations exempt from    
income tax shall be an automatic        
#f-month period beginning on the due    
date for filing the return 7without     
regard to any extensions74  7#e7 ,the   
maximum extension for the returns of    
organizations exempt from income tax    

that are required to file ,form #dgbj   
returns of excise taxes shall be an     
automatic #f-month period beginning on  
the due date for filing the return      
7without regard to any extensions74     
7#f7 ,the maximum extension for the     
returns of trusts required to file ,form
 #ebbg shall be an automatic #f-month   
period beginning on the due date for    
filing the return 7without regard to any
 extensions74  7#g7 ,the maximum        
extension for the returns of ,black     
,lung ,benefit ,trusts required to file 
,form #fjfi returns of excise taxes     
shall be an automatic #f-month period   
beginning on the due date for filing the
 return 7without regard to any          
extensions74  7#h7 ,the maximum         
extension for a taxpayer required to    
file ,form #hhgj shall be an automatic  
#f-month period beginning on the due    
date for filing the return 7without     
regard to any extensions74  7#i7 ,the   
due date of ,form #cebj-;,a1 ,annual    
,information ,return of a ,foreign      

,trust with a ,united ,states ,owner1   
shall be the #aeth day of the #dth month
 after the close of the trust's taxable 
year1 and the maximum extension shall be
 a #f-month period beginning on such    
day4  7#aj7 ,the due date of ,fin,c,e,n 
,form #aad 7relating to ,report of      
,foreign ,bank and ,financial ,accounts7
 shall be ,april #ae with a maximum     
extension for a #f-month period ending  
on ,october #ae1 and with provision for 
an extension under rules similar to the 
rules of #bf ,c4,f4,r4 #a4fjha-e4 ,for  
any taxpayer required to file such form 
for the first time1 the ,secretary of   
the ,treasury may waive any penalty for 
failure to timely request or file an    
extension4  7#aa7 ,taxpayers filing     
,form #cebj1 ,annual ,return to ,report 
,transactions with ,foreign ,trusts and 
,receipt of ,certain ,foreign ,gifts1   
shall be allowed to extend the time for 
filing such form separately from the    
income tax return of the taxpayer1 for  
an automatic #f-month period beginning  

on the due date for filing the return   
7without regard to any extensions74  7c7
 ,corporations permitted statutory      
automatic #f-month extension of income  
tax returns  7#a7 ,in general ,section  
#fjha7;b7 of the ,internal ,revenue     
,code of #aihf is amended by striking #c
 months and inserting #f months4  7#b7  
,effective date ,the amendment made by  
this section shall apply to returns for 
taxable years beginning after ,december 
#ca1 #bjae4  ,,iii ,provisions related  
to start-up businesses  #cja4 ,reduction
 in holding period for qualified small  
business stock  7a7 ,in general         
,paragraph 7#a7 of section #abjb7;a7 of 
the ,internal ,revenue ,code of #aihf is
 amended by striking #e years and       
inserting #c years4  7b7 ,conforming    
amendments  7#a7 ,paragraph 7#b7 of     
section #abjb7;b7 of such ,code is      
amended by striking #e years and        
inserting #c years  7#b7 ,subparagraph  
7,a7 of section #abjb7;g77#b7 of such   
,code is amended by striking #e years   

and inserting #c years1  7#c7           
,subparagraph 7,c7 of section           
#abjb7;h77#b7 of such ,code is amended  
by striking #e-year and inserting       
#c-year1 and  7#d7 ,subparagraph 7,a7 of
 section #abjb7;j77#a7 of such ,code is 
amended by striking #e years and        
inserting #c years4  7c7 ,effective date
 ,the amendments made by this section   
shall apply to stock issued after the   
date of the enactment of this ,act4     
#cjb4 ,extension of rollover period for 
qualified small business stock  7a7 ,in 
general ,paragraph 7#a7 of section      
#ajde7;a7 of the ,internal ,revenue     
,code of #aihf is amended by striking   
#fj-;day period and inserting #a-year   
period4  7b7 ,conforming amendment      
,paragraph 7#c7 of section #ajde7;b7 of 
such ,code is amended by striking       
#fj-;day period and inserting #a-year   
period4  7c7 ,effective date ,the       
amendment made by this section shall    
apply to sales after the date of the    
enactment of this ,act4  ,,iv ,promotion

 and ,expansion of ,private ,employee   
,ownership  #dja4 ,short title ,this    
title may be cited as the ,promotion and
 ,expansion of ,private ,employee       
,ownership ,act of #bjae4  #djb4        
,findings ,congress finds that-- 7#a7 on
 ,january #a1 #aiih--nearly #be years   
after the ,employee ,retirement ,income 
,security ,act of #aigd was enacted and 
the employee stock ownership plan       
7hereafter in this section referred to  
as an ,,esop7 was created--employees    
were first permitted to be owners of    
subchapter ,s corporations pursuant to  
the ,small ,business ,job ,protection   
,act of #aiif 7,public ,law #ajd-ahh72  
7#b7 with the passage of the ,taxpayer  
,relief ,act of #aiig 7,public ,law     
#aje-cd71 ,congress designed incentives 
to encourage businesses to become       
,,esop-owned ,s corporations2  7#c7     
since that time1 several thousand       
companies have become ,,esop-owned ,s   
corporations1 creating an ownership     
interest for several million ,americans 

in companies in every ,state in the     
country1 in industries ranging from     
heavy manufacturing to technology       
development to services2  7#d7 while    
estimates show that #dj percent of      
working ,americans have no formal       
retirement account at all1 every ,united
 ,states worker who is an employee-owner
 of an ,s corporation company through an
 ,,esop has a valuable qualified        
retirement savings account2  7#e7 recent
 studies have shown that employees of   
,,esop-owned ,s corporations enjoy      
greater job stability than employees of 
comparable companies2  7#f7 studies also
 show that employee-owners of ,s        
corporation ,,esop companies have       
amassed meaningful retirement savings   
through their ,s ,,esop accounts that   
will give them the means to retire with 
dignity2  7#g7 under the ,small         
,business ,act 7#ae ,u4,s4,c4 #fca et   
seq47 and the regulations promulgated by
 the ,administrator of the ,small       
,business ,administration1 a small      

business concern that was eligible under
 the ,small ,business ,act for the      
numerous preferences of the ,act is     
denied treatment as a small business    
concern after an ,,esop acquires more   
than #di percent of the business1 even  
if the number of employees1 the revenue 
of the small business concern1 and the  
racial1 gender1 or other criteria used  
under the ,act to determine whether the 
small business concern is eligible for  
benefits under the ,act remain the same1
 solely because of the acquisition by   
the ,,esop2 and  7#h7 it is the goal of 
,congress to both preserve and foster   
employee ownership of ,s corporations   
through ,e,s,o,ps4  #djc4 ,deferral of  
tax for certain sales of employer stock 
to employee stock ownership plan        
sponsored by ,s corporation  7a7 ,in    
general ,subparagraph 7,a7 of section   
#ajdb7;c77#a7 of the ,internal ,revenue 
,code of #aihf is amended by striking   
domestic ,c corporation and inserting   
domestic corporation4  7b7 ,effective   

date ,the amendment made by subsection  
7a7 shall apply to sales after the date 
of the enactment of this ,act4  #djd4   
,department of ,treasury ,technical     
,assistance ,office  7a7 ,establishment 
required ,before the end of the #ij-;day
 period beginning on the date of        
enactment of this ,act1 the ,secretary  
of ,treasury shall establish the ,s     
,corporation ,employee ,ownership       
,assistance ,office to foster increased 
employee ownership of ,s corporations4  
7b7 ,duties of the office ,the ,s       
,corporation ,employee ,ownership       
,assistance ,office shall provide--     
7#a7 education and outreach to inform   
companies and individuals about the     
possibilities and benefits of employee  
ownership of ,s corporations2 and  7#b7 
technical assistance to assist ,s       
corporations in sponsoring employee     
stock ownership plans4  #dje4 ,small    
business and employee stock ownership   
7a7 ,in general ,the ,small ,business   
,act 7#ae ,u4,s4,c4 #fca et seq47 is    

amended--  7#a7 by redesignating section
 #dg as section #dh2 and  7#b7 by       
inserting after section #df the         
following3  #dg4 ,employee stock        
ownership plans  7a7 ,definitions ,in   
this section--  7#a7 the term ,,esop    
means an employee stock ownership plan1 
as defined in section #dige7;e77#g7 of  
the ,internal ,revenue ,code of #aihf1  
as amended2 and  7#b7 the term ,,esop   
business concern means a business       
concern that was a small business       
concern eligible for a loan1 preference1
 or other program under this ,act before
 the date on which more than #di percent
 of the business concern was acquired by
 an ,,esop4  7b7 ,continued eligibility 
,in determining whether an ,,esop       
business concern qualifies as a small   
business concern for purposes of a loan1
 preference1 or other program under this
 ,act1 each ,,esop participant shall be 
treated as directly owning his or her   
proportionate share of the stock in the 
,,esop business concern owned by the    

,,esop4  4  7b7 ,effective date ,the    
amendments made by this section shall   
take effect on ,january #a of the first 
calendar year beginning after the date  
of the enactment of this ,act4          
,september #ae1 #bjae,placed on the     
calendar