To amend the Internal Revenue Code of 1986 to allow an immediate deduction for start-up and organizational expenditures in order to spur entrepreneurship.

April 11, 2003

Mr. REYNOLDS (for himself, Mrs. BLACKBURN, Ms. GINNY BROWN-WAITE of Florida, and Mr. SOUDER) introduced the following bill; which was referred to the Committee on Ways and Means

To amend the Internal Revenue Code of 1986 to allow an immediate deduction for start-up and organizational expenditures in order to spur entrepreneurship.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

This Act may be cited as the `Remove Tax Barriers for Entrepreneurs Act'.

SEC. 2. EXPENSING OF START-UP AND ORGANIZATIONAL EXPENDITURES.

(a) START-UP EXPENDITURES-

(1) IN GENERAL- Paragraph (1) of section 195(b) of the Internal Revenue Code of 1986 (relating to election to amortize) is amended by striking `such period of not less than 60 months' and inserting `such period of months'.

(2) CONFORMING AMENDMENTS-

(A) Section 195(b) of such Code is amended in the heading by striking `AMORTIZE' and inserting `DEDUCT'.

(B) Section 195(b)(2) of such Code is amended in the heading by striking `AMORTIZATION' and inserting `SELECTED'.

(b) ORGANIZATIONAL EXPENDITURES-

(1) IN GENERAL- Subsection (a) of section 248 of such Code (relating to organizational expenditures) is amended by striking `such period of not less than 60 months' and inserting `such period of months'.

(2) CONFORMING AMENDMENT- Section 248(a) of such Code is amended in the heading by striking `AMORTIZE' and inserting `DEDUCT'.

(c) ORGANIZATIONAL AND SYNDICATION FEES OF PARTNERSHIPS-

(1) IN GENERAL- Paragraph (1) of section 709(b) of such Code (relating to amortization of organization fees) is amended--

(A) by striking `such period of not less than 60 months' and inserting `such period of months', and

(B) by striking `such 60-month period' and inserting `such period'.

(2) CONFORMING AMENDMENT- Section 709(b) of such Code is amended in the heading by striking `AMORTIZATION' and inserting `DEDUCTION'.

(d) EFFECTIVE DATE- The amendments made by this section shall apply to elections made after the date of the enactment of this Act.

END