A bill to amend the Internal Revenue Code of 1954 to provide a credit against tax for investment in small business participating debentures, and to provide additional tax incentives for the issuance of such debentures.
Latest action. Referred to Senate Committee on Finance.
Amends the Internal Revenue Code to allow a taxpayer a credit against the income tax (not to exceed $5,000 per year, or $10,000 in the case of a joint return) for investment in small business participating debentures. Specifies a formula for the computation of such credit. Provides for a carryover of the excess for up to seven years. Disallows such credit for debentures: (1) issued by a small business in which the taxpayer has a defined interest; or (2) disposed of within the same taxable year in which they are acquired, and before the deadline for filing of the tax return. Limits qualified small businesses to those whose equity capital does not exceed $25,000,000. Applies long-term capital gains treatment to amounts actually paid to a taxpayer in respect of a small business participating debenture, which constitute the distribution of a share of the earnings of the issuer. Treats losses on such debentures as ordinary losses. Allows an interest deduction for interest and share-of-earnings payments made on such a debenture. Provides for complete or partial disallowance of the tax credit in specified circumstances.
Written by analysts at the Congressional Research Service and published on Congress.gov, not by Civibrief. Summarized at the "Introduced in Senate" stage on July 11, 1979. It describes the bill, it is not the legal text.
Where is it in the process, and what happens next?
4 steps remain before this bill could become law.
The record's latest action, on July 11, 1979: Referred to Senate Committee on Finance.
- Clearing the committees it was referred to, and being scheduled for a floor vote
- Passage by the Senate
- Passage by the House
- The President's signature. If the President vetoes it, two-thirds of both chambers must vote to override.
How likely is it to become law?
Civibrief does not forecast outcomes and this page has no opinion about this one. What the record supports is a base rate, which is a fact about the whole pile, not a prediction about this measure.
In the 96th Congress (1979-80), 613 of the 12,581 bills and joint resolutions introduced became law, about 4.9 percent. That count covers every measure at every stage, including the many that never left committee.
This one is not there yet: 4 steps are still outstanding, listed above.
Has anyone actually voted on it?
No. No roll call in this Congress cites this measure. That is the ordinary outcome: most measures never reach a recorded floor vote, and a committee ends most of them simply by not acting.
A vote is not the only thing that happens to a measure. Hearings, markups, and referrals are all recorded actions, and none of them is a vote of the full chamber.
Who is behind it?
LOWELL WEICKER (R-CT) introduced it on July 11, 1979, and 4 members have since signed on as cosponsors.
They come from both major parties: 2 Democrats, 2 Republicans.
Cosponsoring is a formal signature on the text. It is not a commitment to vote for the measure, it does not bind anyone's party, and a long list of cosponsors is a measure of attention rather than of prospects.
How long has it been in play?
It was introduced on July 11, 1979, 17228 days ago. The most recent recorded action was 17228 days ago, on July 11, 1979.
Measures do not carry over. Anything the 96th Congress has not finished by January 3, 1981 dies when the term ends, and has to be introduced again from the start in the next Congress.
Every answer above is assembled from this measure's own record on Congress.gov and from published counts of what Congress has passed before. Civibrief does not predict outcomes and takes no position on any measure.
Vote history
- SenateIn committee, no floor vote yet
- HouseAwaits Senate passage
- PresidentAwaits both chambers