Access Business Credit Act of 2019

II 116TH CONGRESS 1ST SESSION S. 1226 To amend the Internal Revenue Code of 1986 to provide an exclusion from gross income for interest on certain small business loans. IN THE SENATE OF THE UNITED STATES APRIL 29, 2019 Mr. ROUNDS (for himself and Ms. DUCKWORTH) introduced the following bill; which was read twice and referred to the Committee on Finance A BILL To amend the Internal Revenue Code of 1986 to provide an exclusion from gross income for interest on certain small business loans. Be it enacted by the Senate and House of Representa- 1 tives of the United States of America in Congress assembled, 2 SECTION 1. SHORT TITLE. 3 This Act may be cited as the ‘‘Access Business Credit 4 Act of 2019’’. 5 SEC. 2. EXCLUSION OF INTEREST ON CERTAIN SMALL BUSI- 6 NESS LOANS. 7 (a) IN GENERAL.—Part III of subchapter B of chap- 8 ter 1 of the Internal Revenue Code of 1986 is amended 9 by inserting after section 139G the following new section: 10 VerDate Sep 11 2014 02:43 Apr 30, 2019 Jkt 089200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\S1226.IS S1226 kjohnson on DSK79L0C42 with BILLS 2 •S 1226 IS ‘‘SEC. 139H. INTEREST ON CERTAIN SMALL BUSINESS 1 LOANS. 2 ‘‘(a) IN GENERAL.—In the case of a bank described 3 in subsection (c), gross income shall not include qualified 4 interest received from a small business during the taxable 5 year. 6 ‘‘(b) QUALIFIED INTEREST.—The term ‘qualified in- 7 terest’ means, with respect to a small business, interest 8 on indebtedness of not more than $5,000,000— 9 ‘‘(1) secured by land situated in the United 10 States that is used or held by the small business in 11 connection with the active conduct of a farming 12 business, or 13 ‘‘(2) incurred in the ordinary course of the 14 trade or business of the small business. 15 ‘‘(c) BANK DESCRIBED.— 16 ‘‘(1) IN GENERAL.—A bank is described in this 17 subsection if the bank has less than 18 $50,000,000,000 in assets at the close of the pre- 19 ceding taxable year. 20 ‘‘(2) BANK DEFINED.—For purposes of this 21 subsection— 22 ‘‘(A) IN GENERAL.—The term ‘bank’ 23 means— 24 ‘‘(i) any financial institution described 25 in section 581 or 591, and 26 VerDate Sep 11 2014 02:43 Apr 30, 2019 Jkt 089200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\S1226.IS S1226 kjohnson on DSK79L0C42 with BILLS 3 •S 1226 IS ‘‘(ii) a corporation which, under the 1 laws of the State of its incorporation, is 2 subject to supervision and examination by 3 the Commissioner of Banking or other offi- 4 cer of such State in charge of the adminis- 5 tration of the banking laws of such State. 6 ‘‘(B) HOLDING COMPANY.—The term 7 ‘bank’ includes— 8 ‘‘(i) any bank holding company (with- 9 in the meaning of section 2(a) of the Bank 10 Holding Company Act of 1956), and 11 ‘‘(ii) any subsidiary of a financial in- 12 stitution described in section 581 or 591 or 13 of any bank holding company if such sub- 14 sidiary is predominantly engaged (directly 15 or indirectly) in the active conduct of a 16 banking, financing, or similar business. 17 ‘‘(d) SMALL BUSINESS.—The term ‘small business’ 18 means a small business concern as defined under section 19 3 of the Small Business Act (15 U.S.C. 632). 20 ‘‘(e) FARMING BUSINESS.—The term ‘farming busi- 21 ness’ has the meaning given such term by section 22 263A(e)(4).’’. 23 (b) CLERICAL AMENDMENT.—The table of sections 24 for part III of subchapter B of chapter 1 of such Code 25 VerDate Sep 11 2014 02:43 Apr 30, 2019 Jkt 089200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\S1226.IS S1226 kjohnson on DSK79L0C42 with BILLS 4 •S 1226 IS is amended by inserting after the item relating to section 1 139G the following new item: 2 ‘‘Sec. 139H. Interest on certain small business loans.’’. (c) EFFECTIVE DATE.—The amendments made by 3 this section shall apply to interest received in taxable years 4 beginning after December 31, 2018. 5 Æ VerDate Sep 11 2014 02:43 Apr 30, 2019 Jkt 089200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6301 E:\BILLS\S1226.IS S1226 kjohnson on DSK79L0C42 with BILLS