,,iii ,cal5d> ,no4 #bbf #aad? ,,congress #a/ ,session ,s4 ,,res4 #beb ,,9 ,,! ,,s5ate ,,( ,,! ,,unit$ ,,/ates ,septemb] #ae1 #bjae ,mr4 ,vitt]1 f ! ,committee on ,small ,bus9ess & ,entrepr5eur%ip ( ! ,s5ate1 report$ ! foll[+ orig9al resolution2 :i* 0 plac$ on ! cal5d> ,,resolution ,express+ ! s5se ( ! ,committee on ,small ,bus9ess & ,entrepr5eur%ip ( ! ,s5ate relat+ to eas+ ! burd5 ( ,f$]al tax compliance on small bus9esses4 ,:]eas ,am]ican small bus9esses face major ob/acles comply+ ) _! ,f$]al tax obligations2 ,:]eas ! complexity ( ! ,f$]al tax code unfairly p5alizes small bus9esses2 ,:]eas su* complexity requires small bus9ess own]s to sp5d significant am\nts ( "t1 money1 & res\rces comply+ ) _! tax obligations & less "t op]at+ _! bus9ess2 ,:]eas ,congress has exac]bat$ ^! *all5ges = ,am]ica's small bus9esses by fail+ to update ! tax code 9 a mann] t prop]ly reflects curr5t circum/ances2 ,:]eas tax policy %\ld also promote increas$ sav+s by ,am]ican citiz5s to be able to af=d ! co/s ( liv+ deep] into old age2 ,:]eas employee /ock own]%ip plans help small bus9esses (f] economic inc5tives to employees & help employees save m = _! retirem5ts via inve/m5ts 9 _! employ+ companies2 ,:]eas tax policy %\ld support small bus9esses 9 provid+ b5efit packages to _! employees to be competitive ) l>g] employ]s = ! be/ tal5t2 ,:]eas ! successful rese>* & developm5t tax cr$it has be5 us$ to inc5tivize private firms to inve/ 9 rese>* & developm5t1 & private inve/m5t leads to spillov] effects t c h a broad public good ?r\gh ! creation ( new products1 ! developm5t ( new processes1 & ! laun*+ ( new indu/ries2 ,:]eas :ile ! rese>* & developm5t tax cr$it is ess5tial = our innovators1 x is n accessible to _m small bus9esses & />tups--p] ! ,gov]nm5t ,acc\ntability ,(fice1 ov] half ( ! cr$it goes to firms ) #a1jjj1jjj1jjj or m 9 receipts2 ,:]eas1 accord+ to ! ,congressional ,rese>* ,s]vice1 num]\s comm]cially successful innovations orig9at$ 9 small1 fl$gl+ firms t c\ld n access ! rese>* & developm5t cr$it2 ,:]eas1 if ,congress made ! rese>* & developm5t tax cr$it m available to small bus9esses & />tups1 ?\s&s ( innovative small firms c\ld claim ! cr$it1 boo/+ _! capacity to inve/ 9 innovation & job creation2 & ,:]eas prud5t *anges to ! /ructure ( ! ,f$]al tax code w\ld ease ! burd5 ( tax compliance1 all[+ small bus9esses to put m money back into _! bus9ess1 community1 & ! economy3 ,n[1 !re=e1 be x ,t x is ! s5se ( ! ,committee on ,small ,bus9ess & ,entrepr5eur%ip t ! ,s5ate %\ld enact ! foll[+3 ,i ,small bus9ess tax re=m #aja4 ,expansion ( ca% acc\nt+ ?re%old 7a7 ,9 g5]al 7#a7 ,9 g5]al ,p>agraph 7#c7 ( section #ddh7;b7 ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$ by /rik+ #e1jjj1jjj 9 ! text & 9 ! head+ & ins]t+ #be1jjj1jjj4 7#b7 ,con=m+ am5dm5ts ,section #ddh7;c7 ( su* ,code is am5d$-- 7,a7 by /rik+ #e1jjj1jjj ea* place x appe>s 9 ! text & 9 ! head+ ( p>agraph 7#a7 & ins]t+ #be1jjj1jjj1 & 7,b7 by add+ at ! end ! foll[+ new p>agraph3 7#d7 ,inflation adju/m5t ,9 ! case ( any taxable ye> beg9n+ 9 a cal5d> ye> aft] #bjae1 ! doll> am\nt conta9$ 9 subsection 7b77#c7 & p>agraph 7#a7 ( ?is subsection %all be increas$ by an am\nt equal to-- 7,a7 su* doll> am\nt1 multipli$ by 7,b7 ! co/-(-liv+ adju/m5t det]m9$ "u section #a7;f77#c7 = ! cal5d> ye> 9 :i* ! taxable ye> beg9s1 by sub/itut+ cal5d> ye> #bjad = cal5d> ye> #aiib 9 subp>agraph 7,b7 !re(4 ,if any am\nt z adju/$ "u ?is subp>agraph is n a multiple ( #ajj1jjj1 su* am\nt %all be r\nd$ to ! ne>e/ multiple ( #ajj1jjj4 4 7b7 ,exemption f inv5tory requirem5t ,section #dga ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$ by r$esignat+ subsection 7c7 z subsection 7d7 & by ins]t+ aft] subsection 7b7 ! foll[+ new subsection3 7c7 ,section n to apply to c]ta9 ca% me?od taxpay]s ,if a taxpay]-- 7#a7 w\ld o!rwise be requir$ to use inv5tories "u ?is section = any taxable ye>1 b 7#b7 ! taxpay] meets ! gross receipts te/ ( section #ddh7;b7 = ! taxable ye> & is eligible & elects to use ! ca% receipts & disbursem5ts me?od ( acc\nt+ = ! taxable ye>1 !n ! requirem5t to use inv5tories %all n apply to ! taxpay] = ! taxable ye>4 4 7c7 ,effective date & special rule 7#a7 ,9 g5]al ,! am5dm5ts made by ?is section %all apply to taxable ye>s beg9n+ aft] ,decemb] #ca1 #bjad4 7#b7 ,*ange 9 me?od ( acc\nt+ ,9 ! case ( any taxpay] *ang+ ! taxpay]'s me?od ( acc\nt+ = any taxable ye> "u ! am5dm5ts made by ?is section-- 7,a7 su* *ange %all be treat$ z initiat$ by ! taxpay]2 & 7,b7 su* *ange %all be treat$ z made ) ! cons5t ( ! ,secret>y ( ! ,treasury4 #ajb4 ,modification ( ,safe ,h>bor = ,exp5s+ ( ,acquisition or ,production ,co/s ( ,tangible ,prop]ty 7a7 ,requirem5t to ,modify ,safe ,h>bor ,! ,secret>y ( ! ,treasury or 8 delegate %all1 )9 #ahj days aft] ! date ( enactm5t ( ?is ,act1 modify ,treasury ,regulations section #a4bfc7;a7-#a7;f7 by-- 7#a7 increas+ ! am\nt ( ! de m9imis safe h>bor = taxpay]s )\t applicable f9ancial /atem5ts f #ejj to #b1ejj1 7#b7 requir+ adequate records %[+ ! doll> am\nt be+ exp5s$ 9 lieu ( acc\nt+ proc$ures 9 place at ! beg9n+ ( ! taxable ye>1 & 7#c7 modify+ ! def9ition ( applicable f9ancial /atem5t to include review$ f9ancial /atem5ts4 7b7 ,effective date ,! modifications requir$ by subsection 7a7 %all apply to taxable ye>s beg9n+ aft] ,decemb] #ca1 #bjad4 #ajc4 ,removal ( comput] equipm5t f li/$ prop]ty 7a7 ,9 g5]al ,section #bhj;,f7d77#d77;,a7 ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$ by ins]t+ & at ! end ( clause 7iii7 & by /rik+ clause 7iv74 7b7 ,con=m+ am5dm5t ,section #bhj;,f7d77#d7 ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$ by /rik+ subp>agraph 7,b7 & by r$esignat+ subp>agraph 7,c7 z subp>agraph 7,b74 7c7 ,effective date ,! am5dm5ts made by ?is section %all apply to taxable ye>s beg9n+ aft] ! date ( ! enactm5t ( ?is ,act4 #ajd4 ,d$uction = heal? insurance co/s 9 comput+ self-employm5t taxes 7a7 ,9 g5]al ,p>agraph 7#d7 ( section #afb7l7 ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$ by /rik+ = taxable ye>s beg9n+ be=e ,janu>y #a1 #bjaj1 or aft] ,decemb] #ca1 #bjaj & ins]t+ = taxable ye>s beg9n+ be=e ,janu>y #a1 #bjae44 7b7 ,effective date ,! am5dm5t made by ?is section %all apply to taxable ye>s beg9n+ aft] ,decemb] #ca1 #bjad4 #aje4 ,modification ( rules relat+ to ! t]m9ation ( p>tn]%ips & ,s corporations 7a7 ,no t]m9ation ( p>tn]%ip on sale or ex*ange ( assets 7#a7 ,9 g5]al ,section #gjh7;b77#a7 ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$ by /rik+ only if & all t foll[s & ins]t+ only if no "p ( any bus9ess1 f9ancial op]ation1 or v5ture ( ! p>tn]%ip cont9ues to be c>ri$ on by any ( its p>tn]s 9 a p>tn]%ip44 7#b7 ,con=m+ am5dm5ts 7,a7 ,section #afh7;i77#g77;,b7 ( su* ,code is am5d$ by /rik+ ! la/ s5t5ce4 7,b7 ,section #gdc7;e7 ( su* ,code is am5d$ by /rik+ p>agraph 7#d74 7,c7 ,section #ggd ( su* ,code is am5d$ by /rik+ subsection 7c74 7b7 ,no t]m9ation ( ,s corporation /atus due to excessive passive inve/m5t income ,p>agraph 7#c7 ( section #acfb7;d7 ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$ by add+ at ! end ! foll[+ new subp>agraph3 7,d7 ,t]m9ation ,?is p>agraph %all n apply to taxable ye>s end+ aft] ! date ( ! enactm5t ( ?is subp>agraph4 4 ,,ii ,provisions relat$ to ! ,int]nal ,rev5ue ,s]vice #bja4 ,inflation adju/m5ts = c]ta9 provisions 7a7 ,9 g5]al ,*apt] #gg ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$ by add+ at ! end ! foll[+ new section3 #gebi4 ,inflation adju/m5ts 7a7 ,9 g5]al ,9 ! case ( any taxable ye> beg9n+ 9 a cal5d> ye> aft] #bjae1 ea* ( ! specifi$ doll> am\nts %all be increas$ by an am\nt equal to-- 7#a7 su* doll> am\nt1 multipli$ by 7#b7 ! co/-(-liv+ adju/m5t det]m9$ "u section #a7;f77#c7 = ! cal5d> ye> 9 :i* ! taxable ye> beg9s1 det]m9$ by sub/itut+ cal5d> ye> #bjad = cal5d> ye> #aiib 9 subp>agraph 7,b7 !re(4 7b7 ,specifi$ doll> am\nts ,= purposes ( subsection 7a71 ! specifi$ doll> am\nts are-- 7#a7 ! #ej1jjj am\nt 9 section #gi7;a77#a71 7#b7 ea* ( ! #e1bej am\nts 9 section #abg7;a77#b71 7#c7 ea* ( ! #ejj am\nts 9 p>agraphs 7#aa77;,a71 7#aa77;,b71 & 7#ab7 ( section #agj7;f71 7#d7 ! #e1jjj am\nt 9 section #agj7;f77#aa77;,c71 7#e7 ! #aj1jjj1jjj am\nt 9 section #bfc;,a7b77#b71 7#f7 ea* ( ! doll> am\nts 9 section #bgd7;b77#a71 7#g7 ea* ( ! #djj am\nts 9 section #bgd7;j71 7#h7 ! #a1fjj am\nt 9 section #bgd7;j77#b77;,b71 7#i7 ! #aj1jjj1jjj am\nt 9 section #abjb7;b77#a71 7#aj7 ea* ( ! #ej1jjj1jjj am\nts 9 section #abjb7;d77#a71 7#aa7 ! #ej1jjj am\nt 9 section #abdd7;b77#a71 & 7#ab7 ! #a1jjj1jjj 9 section #abdd7;c77#c77;,a74 7c7 ,r\nd+ 7#a7 ,any increase det]m9$ "u p>agraph 7#e71 7#i71 or 7#aj7 ( subsection 7b7 %all be r\nd$ to ! ne>e/ multiple ( #ajj1jjj4 7#b7 ,any increase det]m9$ "u p>agraph 7#a71 7#d71 7#aa71 or 7#ab7 ( subsection 7b7 %all be r\nd$ to ! ne>e/ multiple ( #a1jjj4 7#c7 ,any increase det]m9$ "u p>agraph 7#b7 ( subsection 7b7 %all be r\nd$ to ! ne>e/ multiple ( #ejj4 7#d7 ,any increase det]m9$ "u p>agraph 7#c71 7#g71 or 7#h7 ( subsection 7b7 %all be r\nd$ to ! ne>e/ multiple ( #ajj4 7#e7 ,any increase det]m9$ "u p>agraph 7#f7 ( subsection 7b7 %all be r\nd$ to ! ne>e/ multiple ( #e4 4 7b7 ,con=m+ am5dm5ts 7#a7 ,section #abjb7;b77#c7 ( su* ,code is am5d$ by /rik+ p>agraph 7#a77;,a7 %all be appli$ by sub/itut+ #e1jjj1jjj = #aj1jjj1jjj & ins]t+ ! am\nt "u p>agraph 7#a77;,a7 %all be #ej p]c5t ( su* doll> am\nt 7det]m9$ )\t reg>d to ?is p>agraph74 7#b7 ,section #abdd7;b77#b7 ( su* ,code is am5d$ by /rik+ #ajj1jjj & ins]t+ #bjj p]c5t ( ! am\nt "u p>agraph 7#a74 7c7 ,cl]ical am5dm5t ,! table ( sections = *apt] #gg ( su* ,code is am5d$ by add+ at ! end ! foll[+ new item3 ,sec4 #gebi4 ,inflation adju/m5ts4 4 7d7 ,effective date ,! am5dm5ts made by ?is section %all apply to taxable ye>s beg9n+ aft] ! date ( ! enactm5t ( ?is ,act4 #bjb4 ,report on improvem5ts to cu/om] s]vice ,n lat] ?an ,june #cj1 #bjaf1 ! ,commission] ( ,int]nal ,rev5ue %all submit to ! ,committee on ,small ,bus9ess & ,entrepr5eur%ip ( ! ,s5ate1 ! ,committee on ,f9ance ( ! ,s5ate1 & ! ,committee on ,ways & ,means ( ! ,h\se ( ,repres5tatives a report detail+ specific ways to improve cu/om] s]vice to small bus9esses1 includ+ objectively measurable goals = h[ to r$uce response times4 #bjc4 ,return due date modifications 7a7 ,new due date = p>tn]%ip =m #ajfe1 ,s corporation =m #aabj,s1 & ,c corporation =m #aabj 7#a7 ,p>tn]%ips 7,a7 ,9 g5]al ,section #fjgb ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$ by add+ at ! end ! foll[+ new subsection3 7f7 ,returns ( p>tn]%ips ,returns ( p>tn]%ips "u section #fjca made on ! basis ( ! cal5d> ye> %all be fil$ on or be=e ! #ae? day ( ,m>* foll[+ ! close ( ! cal5d> ye>1 & su* returns made on ! basis ( a fiscal ye> %all be fil$ on or be=e ! #ae? day ( ! ?ird mon? foll[+ ! close ( ! fiscal ye>4 4 7,b7 ,con=m+ am5dm5t ,section #fjgb7;a7 ( su* ,code is am5d$ by /rik+ #fjag1 or #fjca & ins]t+ or #fjag4 7#b7 ,s corporations 7,a7 ,9 g5]al ,s mu* ( subsection 7b7 ( #fjgb ( su* ,code z prec$es ! second s5t5ce !re( is am5d$ to read z foll[s3 7b7 ,returns ( c]ta9 corporations ,returns ( ,s corporations "u sections #fjab & #fjcg made on ! basis ( ! cal5d> ye> %all be fil$ on or be=e ! #ca/ day ( ,m>* foll[+ ! close ( ! cal5d> ye>1 & su* returns made on ! basis ( a fiscal ye> %all be fil$ on or be=e ! la/ day ( ! ?ird mon? foll[+ ! close ( ! fiscal ye>4 4 7,b7 ,con=m+ am5dm5ts 7i7 ,section #acfb7;b7 ( su* ,code is am5d$-- 7,i7 by /rik+ #ae? ea* place x appe>s & ins]t+ la/1 7,,ii7 by /rik+ #ba_/b ea* place x appe>s & ins]t+ #c1 & 7,,iii7 by /rik+ #b mon?s & #ae days 9 p>agraph 7#d7 & ins]t+ #c mon?s4 7ii7 ,section #acfb7;d77#a77;,c77i7 ( su* ,code is am5d$ by /rik+ #ae? & ins]t+ la/4 7iii7 ,section #acfb7;d77#a77;,c77ii7 ( su* ,code is am5d$ by /rik+ su* #ae? day & ins]t+ ! la/ day ( ! #c;d mon? !re(4 7#c7 ,con=m+ am5dm5ts relat+ to ,c corporations 7,a7 ,section #agj7;a77#b77;,b7 ( su* ,code is am5d$ by /rik+ ?ird mon? & ins]t+ #d? mon?4 7,b7 ,section #efc ( su* ,code is am5d$ by /rik+ ?ird mon? ea* place x appe>s & ins]t+ #d? mon?4 7,c7 ,section #aced7;d77#a77;,b77i7 ( su* ,code is am5d$ by /rik+ #c;d mon? & ins]t+ #d? mon?4 7,d7 ,subsection 7a7 & 7c7 ( section #fafg ( su* ,code are ea* am5d$ by /rik+ ?ird mon? & ins]t+ #d? mon?4 7,e7 ,section #fdbe7;a77#a7 ( su* ,code is am5d$ by /rik+ ?ird mon? & ins]t+ #d? mon?4 7,f7 ,subsections 7b77#b77;,a71 7g77#c71 & 7h77#a7 ( section #ffee ( su* ,code are ea* am5d$ by /rik+ #crd mon? & ins]t+ #d? mon?4 7#d7 ,effective date ,! am5dm5ts made by ?is subsection %all apply to returns = taxable ye>s beg9n+ aft] ,decemb] #ca1 #bjae4 7b7 ,modification ( due dates by regulation ,9 ! case ( returns = taxable ye>s beg9n+ aft] ,decemb] #ca1 #bjac1 ! ,secret>y ( ! ,treasury or ! ,secret>y's delegate %all modify appropriate regulations to provide z foll[s3 7#a7 ,! maximum ext5sion = ! returns ( p>tn]%ips fil+ ,=m #ajfe %all be a #f-mon? p]iod beg9n+ on ! due date = fil+ ! return 7)\t reg>d to any ext5sions74 7#b7 ,! maximum ext5sion = ! returns ( tru/s & e/ates fil+ ,=m #ajda %all be a #e-mon? p]iod beg9n+ on ! due date = fil+ ! return 7)\t reg>d to any ext5sions74 7#c7 ,! maximum ext5sion = ! returns ( employee b5efit plans fil+ ,=m #eejj %all be an automatic #c-mon? p]iod beg9n+ on ! due date = fil+ ! return 7)\t reg>d to any ext5sions74 7#d7 ,! maximum ext5sion = ! ,=ms #iij 7s]ies7 returns ( organizations exempt f income tax %all be an automatic #f-mon? p]iod beg9n+ on ! due date = fil+ ! return 7)\t reg>d to any ext5sions74 7#e7 ,! maximum ext5sion = ! returns ( organizations exempt f income tax t are requir$ to file ,=m #dgbj returns ( excise taxes %all be an automatic #f-mon? p]iod beg9n+ on ! due date = fil+ ! return 7)\t reg>d to any ext5sions74 7#f7 ,! maximum ext5sion = ! returns ( tru/s requir$ to file ,=m #ebbg %all be an automatic #f-mon? p]iod beg9n+ on ! due date = fil+ ! return 7)\t reg>d to any ext5sions74 7#g7 ,! maximum ext5sion = ! returns ( ,black ,lung ,b5efit ,tru/s requir$ to file ,=m #fjfi returns ( excise taxes %all be an automatic #f-mon? p]iod beg9n+ on ! due date = fil+ ! return 7)\t reg>d to any ext5sions74 7#h7 ,! maximum ext5sion = a taxpay] requir$ to file ,=m #hhgj %all be an automatic #f-mon? p]iod beg9n+ on ! due date = fil+ ! return 7)\t reg>d to any ext5sions74 7#i7 ,! due date ( ,=m #cebj-;,a1 ,annual ,in=mation ,return ( a ,=eign ,tru/ ) a ,unit$ ,/ates ,own]1 %all be ! #ae? day ( ! #d? mon? aft] ! close ( ! tru/'s taxable ye>1 & ! maximum ext5sion %all be a #f-mon? p]iod beg9n+ on su* day4 7#aj7 ,! due date ( ,fin,c,e,n ,=m #aad 7relat+ to ,report ( ,=eign ,bank & ,f9ancial ,acc\nts7 %all be ,april #ae ) a maximum ext5sion = a #f-mon? p]iod end+ on ,octob] #ae1 & ) provision = an ext5sion "u rules simil> to ! rules ( #bf ,c4,f4,r4 #a4fjha-e4 ,= any taxpay] requir$ to file su* =m = ! fir/ "t1 ! ,secret>y ( ! ,treasury may waive any p5alty = failure to timely reque/ or file an ext5sion4 7#aa7 ,taxpay]s fil+ ,=m #cebj1 ,annual ,return to ,report ,transactions ) ,=eign ,tru/s & ,receipt ( ,c]ta9 ,=eign ,gifts1 %all be all[$ to ext5d ! "t = fil+ su* =m sep>ately f ! income tax return ( ! taxpay]1 = an automatic #f-mon? p]iod beg9n+ on ! due date = fil+ ! return 7)\t reg>d to any ext5sions74 7c7 ,corporations p]mitt$ /atutory automatic #f-mon? ext5sion ( income tax returns 7#a7 ,9 g5]al ,section #fjha7;b7 ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$ by /rik+ #c mon?s & ins]t+ #f mon?s4 7#b7 ,effective date ,! am5dm5t made by ?is section %all apply to returns = taxable ye>s beg9n+ aft] ,decemb] #ca1 #bjae4 ,,iii ,provisions relat$ to />t-up bus9esses #cja4 ,r$uction 9 hold+ p]iod = qualifi$ small bus9ess /ock 7a7 ,9 g5]al ,p>agraph 7#a7 ( section #abjb7;a7 ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$ by /rik+ #e ye>s & ins]t+ #c ye>s4 7b7 ,con=m+ am5dm5ts 7#a7 ,p>agraph 7#b7 ( section #abjb7;b7 ( su* ,code is am5d$ by /rik+ #e ye>s & ins]t+ #c ye>s 7#b7 ,subp>agraph 7,a7 ( section #abjb7;g77#b7 ( su* ,code is am5d$ by /rik+ #e ye>s & ins]t+ #c ye>s1 7#c7 ,subp>agraph 7,c7 ( section #abjb7;h77#b7 ( su* ,code is am5d$ by /rik+ #e-ye> & ins]t+ #c-ye>1 & 7#d7 ,subp>agraph 7,a7 ( section #abjb7;j77#a7 ( su* ,code is am5d$ by /rik+ #e ye>s & ins]t+ #c ye>s4 7c7 ,effective date ,! am5dm5ts made by ?is section %all apply to /ock issu$ aft] ! date ( ! enactm5t ( ?is ,act4 #cjb4 ,ext5sion ( rollov] p]iod = qualifi$ small bus9ess /ock 7a7 ,9 g5]al ,p>agraph 7#a7 ( section #ajde7;a7 ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$ by /rik+ #fj-;day p]iod & ins]t+ #a-ye> p]iod4 7b7 ,con=m+ am5dm5t ,p>agraph 7#c7 ( section #ajde7;b7 ( su* ,code is am5d$ by /rik+ #fj-;day p]iod & ins]t+ #a-ye> p]iod4 7c7 ,effective date ,! am5dm5t made by ?is section %all apply to sales aft] ! date ( ! enactm5t ( ?is ,act4 ,,iv ,promotion & ,expansion ( ,private ,employee ,own]%ip #dja4 ,%ort title ,?is title may be cit$ z ! ,promotion & ,expansion ( ,private ,employee ,own]%ip ,act ( #bjae4 #djb4 ,f9d+s ,congress f9ds t-- 7#a7 on ,janu>y #a1 #aiih--ne>ly #be ye>s aft] ! ,employee ,retirem5t ,income ,security ,act ( #aigd 0 enact$ & ! employee /ock own]%ip plan 7h]eaft] 9 ?is section ref]r$ to z an ,,esop7 0 creat$--employees 7 fir/ p]mitt$ to be own]s ( sub*apt] ,s corporations pursuant to ! ,small ,bus9ess ,job ,protection ,act ( #aiif 7,public ,law #ajd-ahh72 7#b7 ) ! passage ( ! ,taxpay] ,relief ,act ( #aiig 7,public ,law #aje-cd71 ,congress design$ inc5tives to enc\rage bus9esses to become ,,esop-own$ ,s corporations2 7#c7 s9ce t "t1 sev]al ?\s& companies h become ,,esop-own$ ,s corporations1 creat+ an own]%ip int]e/ = sev]al million ,am]icans 9 companies 9 e ,/ate 9 ! c\ntry1 9 indu/ries rang+ f heavy manufactur+ to te*nology developm5t to s]vices2 7#d7 :ile e/imates %[ t #dj p]c5t ( work+ ,am]icans h no =mal retirem5t acc\nt at all1 e ,unit$ ,/ates work] :o is an employee-own] ( an ,s corporation company ?r\gh an ,,esop has a valuable qualifi$ retirem5t sav+s acc\nt2 7#e7 rec5t /udies h %[n t employees ( ,,esop-own$ ,s corporations enjoy great] job /ability ?an employees ( comp>able companies2 7#f7 /udies also %[ t employee-own]s ( ,s corporation ,,esop companies h amass$ mean+ful retirem5t sav+s ?r\gh _! ,s ,,esop acc\nts t w give !m ! means to retire ) dignity2 7#g7 "u ! ,small ,bus9ess ,act 7#ae ,u4,s4,c4 #fca et seq47 & ! regulations promulgat$ by ! ,adm9i/rator ( ! ,small ,bus9ess ,adm9i/ration1 a small bus9ess conc]n t 0 eligible "u ! ,small ,bus9ess ,act = ! num]\s pref]5ces ( ! ,act is d5i$ treatm5t z a small bus9ess conc]n aft] an ,,esop acquires m ?an #di p]c5t ( ! bus9ess1 ev5 if ! numb] ( employees1 ! rev5ue ( ! small bus9ess conc]n1 & ! racial1 g5d]1 or o!r crit]ia us$ "u ! ,act to det]m9e :e!r ! small bus9ess conc]n is eligible = b5efits "u ! ,act rema9 ! same1 solely because ( ! acquisition by ! ,,esop2 & 7#h7 x is ! goal ( ,congress to bo? pres]ve & fo/] employee own]%ip ( ,s corporations ?r\gh ,e,s,o,ps4 #djc4 ,def]ral ( tax = c]ta9 sales ( employ] /ock to employee /ock own]%ip plan sponsor$ by ,s corporation 7a7 ,9 g5]al ,subp>agraph 7,a7 ( section #ajdb7;c77#a7 ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$ by /rik+ dome/ic ,c corporation & ins]t+ dome/ic corporation4 7b7 ,effective date ,! am5dm5t made by subsection 7a7 %all apply to sales aft] ! date ( ! enactm5t ( ?is ,act4 #djd4 ,dep>tm5t ( ,treasury ,te*nical ,assi/ance ,(fice 7a7 ,e/abli%m5t requir$ ,be=e ! end ( ! #ij-;day p]iod beg9n+ on ! date ( enactm5t ( ?is ,act1 ! ,secret>y ( ,treasury %all e/abli% ! ,s ,corporation ,employee ,own]%ip ,assi/ance ,(fice to fo/] increas$ employee own]%ip ( ,s corporations4 7b7 ,duties ( ! (fice ,! ,s ,corporation ,employee ,own]%ip ,assi/ance ,(fice %all provide-- 7#a7 education & outrea* to in=m companies & individuals ab\t ! possibilities & b5efits ( employee own]%ip ( ,s corporations2 & 7#b7 te*nical assi/ance to assi/ ,s corporations 9 sponsor+ employee /ock own]%ip plans4 #dje4 ,small bus9ess & employee /ock own]%ip 7a7 ,9 g5]al ,! ,small ,bus9ess ,act 7#ae ,u4,s4,c4 #fca et seq47 is am5d$-- 7#a7 by r$esignat+ section #dg z section #dh2 & 7#b7 by ins]t+ aft] section #df ! foll[+3 #dg4 ,employee /ock own]%ip plans 7a7 ,def9itions ,9 ?is section-- 7#a7 ! t]m ,,esop means an employee /ock own]%ip plan1 z def9$ 9 section #dige7;e77#g7 ( ! ,int]nal ,rev5ue ,code ( #aihf1 z am5d$2 & 7#b7 ! t]m ,,esop bus9ess conc]n means a bus9ess conc]n t 0 a small bus9ess conc]n eligible = a loan1 pref]5ce1 or o!r program "u ?is ,act be=e ! date on :i* m ?an #di p]c5t ( ! bus9ess conc]n 0 acquir$ by an ,,esop4 7b7 ,cont9u$ eligibility ,9 det]m9+ :e!r an ,,esop bus9ess conc]n qualifies z a small bus9ess conc]n = purposes ( a loan1 pref]5ce1 or o!r program "u ?is ,act1 ea* ,,esop p>ticipant %all be treat$ z directly own+ 8 or h] proportionate %>e ( ! /ock 9 ! ,,esop bus9ess conc]n own$ by ! ,,esop4 4 7b7 ,effective date ,! am5dm5ts made by ?is section %all take effect on ,janu>y #a ( ! fir/ cal5d> ye> beg9n+ aft] ! date ( ! enactm5t ( ?is ,act4 ,septemb] #ae1 #bjae,plac$ on ! cal5d>