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![handle is hein.usccsset/usconset49539 and id is 1 raw text is: AUTHENTICATEO
U.S. GOVERNMENT
INFORMATION
Gp
110TH CONGRESS REPORT
1st Session SENATE 110-1
SMALL BUSINESS AND WORK OPPORTUNITY ACT OF 2007
JANUARY 22, 2007.-Ordered to be printed
Mr. BAUCUS, from the Committee on Finance,
submitted the following
REPORT
together with
ADDITIONAL VIEWS
[To accompany S. 349]
The Committee on Finance, having considered an original bill, S.
349, to amend the Internal Revenue Code of 1986 to provide addi-
tional tax incentives to employers and employees of small busi-
nesses, and for other purposes, reports favorably thereon and rec-
ommends that the bill do pass.
CONTENTS
Page
I. LEGISLATIVE BACKGROUND ..................................................................... 2
TITLE I-SMALL BUSINESS TAX RELIEF PROVISIONS ...................... 3
A. Extension of Increased Expensing for Small Business (sec. 101
of the bill and sec. 179 of the Code) ................................................. 3
B. Fifteen-Year Straight-Line Cost Recovery for Qualified Leasehold
Improvements, Qualified Restaurant Improvements and New
Restaurant Buildings (Sec. 102 of the bill and sec. 168 of the
C ode) ................................................................................................... 5
C. Fifteen-Year Straight-Line Cost Recovery for Qualified Retail Im-
provement Property (sec. 102 of the bill and sec. 168 of the
C ode) ................................................................................................... 7
D. Expand Eligibility for Cash Method of Accounting (sec. 103 of
the bill and secs. 446 and 448 of the Code) ..................................... 8
E. Work Opportunity Tax Credit (see. 104 of the bill and see. 51
of th e C ode) ......................................................................................... 10
F. Treatment of Professional Employer Organizations as Employers
for Employment Tax Purposes (sec. 105 of the bill and new
secs. 3511 and 7705 of the Code) ...................................................... 15
G. Subchapter S Provisions (secs. 111-116 of the bill and secs. 1361
and 1362 of the Code) ........................................................................ 24
1. Capital gain not treated as passive investment income ................ 24
2. Treatment of bank director shares .................................................. 25
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