text: SECTION 1. SHORT TITLE.
  
      This Act may be cited as the ``Small Business Tax Certainty and 
  Growth Act of 2013''.
  
  SEC. 2. SENSE OF THE SENATE REGARDING TAX REFORM.
  
      It is the sense of the Senate that Congress should undertake 
  comprehensive tax reform legislation to--
              (1) make our system fairer and simpler; and
              (2) promote economic growth.
  
  SEC. 3. PERMANENT DOUBLING OF DEDUCTIONS FOR START-UP EXPENSES, 
                ORGANIZATIONAL EXPENSES, AND SYNDICATION FEES.
  
      (a) Start-Up Expenses.--
              (1) In general.--Clause (ii) of section 195(b)(1)(A) of the 
          Internal Revenue Code of 1986 is amended--
                      (A) by striking ``$5,000'' and inserting 
                  ``$10,000'', and
                      (B) by striking ``$50,000'' and inserting 
                  ``$60,000''.
              (2) Conforming amendment.--Subsection (b) of section 195 of 
          the Internal Revenue Code of 1986 is amended by striking 
          paragraph (3).
      (b) Organizational Expenses.--Subparagraph (B) of section 248 of 
  the Internal Revenue Code of 1986 is amended--
              (1) by striking ``$5,000'' and inserting ``$10,000'', and
              (2) by striking ``$50,000'' and inserting ``$60,000''.
      (c) Organization and Syndication Fees.--Clause (ii) of section 
  709(b)(1)(A) of the Internal Revenue Code of 1986 is amended--
              (1) by striking ``$5,000'' and inserting ``$10,000'', and
              (2) by striking ``$50,000'' and inserting ``$60,000''.
      (d) Effective Date.--The amendments made by this section shall 
  apply to amounts paid or incurred in taxable years ending on or after 
  the date of the enactment of this Act.
  
  SEC. 4. CLARIFICATION OF CASH ACCOUNTING RULES FOR SMALL BUSINESS.
  
      (a) Cash Accounting Permitted.--
              (1) In general.--Section 446 of the Internal Revenue Code 
          of 1986 (relating to general rule for methods of accounting) is 
          amended by adding at the end the following new subsection:
      ``(g) Certain Small Business Taxpayers Permitted To Use Cash 
  Accounting Method Without Limitation.--
              ``(1) In general.--An eligible taxpayer shall not be 
          required to use an accrual method of accounting for any taxable 
          year.
              ``(2) Eligible taxpayer.--For purposes of this subsection, 
          a taxpayer is an eligible taxpayer with respect to any taxable 
          year if--
                      ``(A) for all prior taxable years beginning after 
                  December 31, 2013, the taxpayer (or any predecessor) 
                  met the gross receipts test of section 448(c), and
                      ``(B) the taxpayer is not subject to section 447 or 
                  448.''.
              (2) Expansion of gross receipts test.--
                      (A) In general.--Paragraph (3) of section 448(b) of 
                  such Code (relating to entities with gross receipts of 
                  not more than $5,000,000) is amended by striking 
                  ``$5,000,000'' in the text and in the heading and 
                  inserting ``$10,000,000''.
                      (B) Conforming amendments.--Section 448(c) of such 
                  Code is amended--
                              (i) by striking ``$5,000,000'' each place 
                          it appears in the text and in the heading of 
                          paragraph (1) and inserting ``$10,000,000'', 
                          and
                              (ii) by adding at the end the following new 
                          paragraph:
              ``(4) Inflation adjustment.--In the case of any taxable 
          year beginning in a calendar year after 2014, the dollar amount 
          contained in subsection (b)(3) and paragraph (1) of this 
          subsection shall be increased by an amount equal to--
                      ``(A) such dollar amount, multiplied by
                      ``(B) the cost-of-living adjustment determined 
                  under section 1(f)(3) for the calendar year in which 
                  the taxable year begins, by substituting `calendar year 
                  2013' for `calendar year 1992' in subparagraph (B) 
                  thereof.
                  If any amount as adjusted under this subparagraph is 
                  not a multiple of $100,000, such amount shall be 
                  rounded to the nearest multiple of $100,000.''.
      (b) Clarification of Inventory Rules for Small Business.--
              (1) In general.--Section 471 of the Internal Revenue Code 
          of 1986 (relating to general rule for inventories) is amended 
          by redesignating subsection (c) as subsection (d) and by 
          inserting after subsection (b) the following new subsection:
      ``(c) Small Business Taxpayers Not Required To Use Inventories.--
              ``(1) In general.--A qualified taxpayer shall not be 
          required to use inventories under this section for a taxable 
          year.
              ``(2) Treatment of taxpayers not using inventories.--If a 
          qualified taxpayer does not use inventories with respect to any 
          property for any taxable year beginning after December 31, 
          2013, such property shall be treated as a material or supply 
          which is not incidental.
              ``(3) Qualified taxpayer.--For purposes of this subsection, 
          the term `qualified taxpayer' means--
                      ``(A) any eligible taxpayer (as defined in section 
                  446(g)(2)), and
                      ``(B) any taxpayer described in section 
                  448(b)(3).''.
              (2) Increased eligibility for simplified dollar-value lifo 
          method.--Section 474(c) is amended by striking ``$5,000,000'' 
          and inserting ``the dollar amount in effect under section 
          448(c)(1)''.
      (c) Effective Date and Special Rules.--
              (1) In general.--The amendments made by this section shall 
          apply to taxable years beginning after December 31, 2013.
              (2) Change in method of accounting.--In the case of any 
          taxpayer changing the taxpayer's method of accounting for any 
          taxable year under the amendments made by this section--
                      (A) such change shall be treated as initiated by 
                  the taxpayer;
                      (B) such change shall be treated as made with the 
                  consent of the Secretary of the Treasury; and
                      (C) the net amount of the adjustments required to 
                  be taken into account by the taxpayer under section 481 
                  of the Internal Revenue Code of 1986 shall be taken 
                  into account over a period (not greater than 4 taxable 
                  years) beginning with such taxable year.
  
  SEC. 5. PERMANENT EXTENSION OF EXPENSING LIMITATION.
  
      (a) Dollar Limitation.--Section 179(b)(1) of the Internal Revenue 
  Code of 1986 is amended by striking ``shall not exceed'' and all that 
  follows and inserting ``shall not exceed $250,000.''.
      (b) Reduction in Limitation.--Section 179(b)(2) of such Code is 
  amended by striking ``exceeds'' and all that follows and inserting 
  ``exceeds $800,000.''.
      (c) Inflation Adjustment.--Subsection (b) of section 179 of such 
  Code is amended by adding at the end the following new paragraph:
              ``(6) Inflation adjustment.--
                      ``(A) In general.--In the case of any taxable year 
                  beginning in a calendar year after 2014, the $250,000 
                  in paragraph (1) and the $800,000 amount in paragraph 
                  (2) shall each be increased by an amount equal to--
                              ``(i) such dollar amount, multiplied by
                              ``(ii) the cost-of-living adjustment 
                          determined under section 1(f)(3) for the 
                          calendar year in which the taxable year begins, 
                          by substituting `calendar year 2013' for 
                          `calendar year 1992' in subparagraph (B) 
                          thereof.
                      ``(B) Rounding.--
                              ``(i) Dollar limitation.--If the amount in 
                          paragraph (1) as increased under subparagraph 
                          (A) is not a multiple of $1,000, such amount 
                          shall be rounded to the nearest multiple of 
                          $1,000.
                              ``(ii) Phaseout amount.--If the amount in 
                          paragraph (2) as increased under subparagraph 
                          (A) is not a multiple of $10,000, such amount 
                          shall be rounded to the nearest multiple of 
                          $10,000.''.
      (d) Computer Software.--Section 179(d)(1)(A)(ii) of such Code is 
  amended by striking ``and before 2014''.
      (e) Election.--Section 179(c)(2) of such Code is amended by 
  striking ``and before 2014''.
      (f) Special Rules for Treatment of Qualified Real Property.--
              (1) In general.--Section 179(f)(1) of such Code is amended 
          by striking ``beginning in 2010, 2011, 2012, or 2013'' and 
          inserting ``beginning after 2009''.
              (2) Conforming amendment.--Section 179(f) of such Code is 
          amended by striking paragraph (4).
      (g) Effective Date.--The amendments made by this section shall 
  apply to taxable years beginning after December 31, 2013.
  
  SEC. 6. EXTENSION OF BONUS DEPRECIATION.
  
      (a) In General.--Paragraph (2) of section 168(k) of the Internal 
  Revenue Code of 1986 is amended--
              (1) by striking ``January 1, 2015'' in subparagraph (A)(iv) 
          and inserting ``January 1, 2016'', and
              (2) by striking ``January 1, 2014'' each place it appears 
          and inserting ``January 1, 2015''.
      (b) Special Rule for Federal Long-Term Contracts.--Clause (ii) of 
  section 460(c)(6)(B) of the Internal Revenue Code of 1986 is amended by 
  striking ``January 1, 2014 (January 1, 2015'' and inserting ``January 
  1, 2015 (January 1, 2016''.
      (c) Conforming Amendments.--
              (1) The heading for subsection (k) of section 168 of the 
          Internal Revenue Code of 1986 is amended by striking ``January 
          1, 2014'' and inserting ``January 1, 2015''.
              (2) The heading for clause (ii) of section 168(k)(2)(B) of 
          such Code is amended by striking ``Pre-january 1, 2014'' and 
          inserting ``Pre-january 1, 2015''.
              (3) Section 168(k)(4)(D) is amended by striking ``and'' at 
          the end of clause (ii), by striking the period at the end of 
          clause (iii) and inserting a comma, and by adding at the end 
          the following new clauses:
                              ``(iv) `January 1, 2015' shall be 
                          substituted for `January 1, 2016' in 
                          subparagraph (A)(iv) thereof, and
                              ``(v) `January 1, 2014' shall be 
                          substituted for `January 1, 2015' each place it 
                          appears in subparagraph (A) thereof.''.
              (4) Section 168(l)(4) of such Code is amended by striking 
          ``and'' at the end of subparagraph (A), by redesignating 
          subparagraph (B) as subparagraph (C), and by inserting after 
          subparagraph (A) the following new subparagraph:
                      ``(B) by substituting `January 1, 2014' for 
                  `January 1, 2015' in clause (i) thereof, and''.
              (5) Subparagraph (C) of section 168(n)(2) of such Code is 
          amended by striking ``January 1, 2014'' and inserting ``January 
          1, 2015''.
              (6) Subparagraph (D) of section 1400L(b)(2) of such Code is 
          amended by striking ``January 1, 2014'' and inserting ``January 
          1, 2015''.
              (7) Subparagraph (B) of section 1400N(d)(3) of such Code is 
          amended by striking ``January 1, 2014'' and inserting ``January 
          1, 2015''.
      (d) Effective Date.--The amendments made by this section shall 
  apply to property placed in service after December 31, 2013, in taxable 
  years ending after such date.
  
  SEC. 7. EXTENSION OF 15-YEAR STRAIGHT-LINE COST RECOVERY FOR QUALIFIED 
                LEASEHOLD IMPROVEMENTS, QUALIFIED RESTAURANT BUILDINGS 
                AND IMPROVEMENTS, AND QUALIFIED RETAIL IMPROVEMENTS.
  
      (a) In General.--Clauses (iv), (v), and (ix) of section 
  168(e)(3)(E) of the Internal Revenue Code of 1986 are each amended by 
  striking ``January 1, 2014'' and inserting ``January 1, 2015''.
      (b) Effective Date.--The amendments made by this section shall 
  apply to property placed in service after December 31, 2013.
target: Small Business Tax Certainty and Growth Act of 2013 - Expresses the sense of the Senate that Congress should undertake comprehensive tax reform to make the tax system fairer and simpler and to promote economic growth. Amends the Internal Revenue Code to: (1) make permanent the increased tax deductions for business start-up expenditures, organizational expenditures, and organization and syndication fees; (2) allow the cash accounting method for businesses whose gross receipts do not exceed $10 million (currently, $5 million); (3) exempt businesses whose gross receipts do not exceed $10 million from the requirement to use inventories; (4) make permanent the $250,000 allowance for expensing business assets, including computer software; (5) extend for one year the additional depreciation allowance for business assets; and (6) extend through 2014 the 15-year straight-line depreciation allowance for qualified leasehold, restaurant, and retail improvements.
feat_title: Small Business Tax Certainty and Growth Act of 2013