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United States · Law · HR

H.R. 3448 (104th)

Small Business Job Protection Act of 1996

enactedUnited States· United States Congress· EN

Introduced

14 May 1996

Last action

20 August 1996 · President

Status

Became Public Law No: 104-188.

Sponsors

Rep. Archer, Bill [R-TX-7]

Subjects

Healthcare, Taxation

Source updated

7 April 2025

Healthcare · Taxation

Summary

TABLE OF CONTENTS: Title I: Small Business and Other Tax Provisions Subtitle A: Expensing; Etc. Subtitle B: Extension of Certain Expiring Provisions Subtitle C: Provisions Relating to S Corporations Subtitle D: Pension Simplification Subtitle E: Foreign Simplification Subtitle F: Revenue Offsets Subtitle G: Technical Corrections Small Business Job Protection Act of 1996 - Title I: Small Business and Other Tax Provisions - States that no addition to any underpayment of a tax installment required to be paid before enactment shall be made to the extent such underpayment was created by this title. Subtitle A: Expensing; Etc. - Amends the Internal Revenue Code to incrementally increase to $25,000 by the year 2003 the amount which a small business may expense. Revises provisions concerning employee tips. Subtitle B: Extension of Certain Expiring Provisions - Decreases from 40 to 35 percent the work opportunity credit. Extends and makes other revisions to such credit, including redefining members of targeted groups. Extends: (1) employer provided educational assistance programs; and (2) permanently, the Federal Unemployment Tax exemption for alien agricultural workers. Subtitle C: Provisions Relating to S Corporations - Increases from 35 to 75 the number of S corporation shareholders permitted. Permits an electing small business trust as a shareholder. Permits financial institutions to hold safe harbor debt. Revises S corporation provisions concerning: (1) the post-death qualification period; (2) the rules relating to inadvertent terminations and invalid elections; (3) an agreement to terminate the taxable year; (4) the post-termination transition period; and (5) the treatment of distributions during loss years. Provides: (1) subject to exception, for the application of Subchapter C rules to an S corporation and its shareholders; (2) for the elimination certain earnings and profits; (3) for the carryover of disallowed losses and deductions under at-risk rules; and (4) adjustments to the basis of inherited S stock to reflect certain items of income. Makes applicable to S corporations the rules applicable to individuals with respect to real property subdivided for sale. Subtitle D: Pension Simplification - Repeals: (1) five-year income averaging for lump sum distributions; and (2) the $5,000 exclusion of employees' death benefits. (Sec. 1403) Revises provisions concerning: (1) taxing annuity distributions under certain employer plans; and (2) the present requirement of beginning distributions on April 1 of the calendar year following a participant's attainment of the age 70 and one-half. (Sec. 1421) Establishes a simple retirement account matching plan for employees of businesses with 100 or fewer employees. Permits a simple plan under a 401(k) plan. (Sec. 1426) Permits 401(k) plans for tax-exempt organizations. (Sec. 1431) Revises the definition of a highly compensated employee. Repeals the family aggregation rules. Modifies additional participation requirements. Provides alternative methods of meeting nondiscrimination requirements. (Sec. 1442) Provides for the applicability of the special vesting rules for multiemployer plans to other qualified plans. (Sec. 1443) Provides for the treatment of: (1) distributions under rural cooperative plans; and (2) qualified governmental excess benefit arrangements. (Sec. 1445) Provides: (1) for the treatment of the social security retirement age as a uniform retirement age; and (2) that subsidized early retirement benefits and joint and survivor annuities shall not be treated as being unavailable to employees on the same terms merely because such benefits are based on an employees social security retirement age. (Sec. 1446) Provides for the treatment of: (1) contributions on behalf of disabled employees; (2) deferred compensation plans of State and local governments and tax-exempt organizations. (Sec. 1448) Requires governmental plans to hold deferred amounts in trusts. Revises provisions concerning the treatment of Indian tribal government annuities. (Sec. 1450) Permits multiple salary reduction agreements. (Sec. 1452) Repeals the limitation in the case of a defined benefit plan and a defined contribution plan for the same employee. (Sec. 1453) Increases the five percent tax on prohibited transactions to ten percent. (Sec. 1454) Revises the definition of a leased employee. (Sec. 1455) Applies failure to file information report penalties to pension payments. (Sec. 1456) Exempts the retirement benefits of ministers, including the rental value of a parsonage, received under a church plan from the tax on net earnings from self-employment. Subtitle E: Foreign Simplification - Repeals the inclusion in gross income of certain earnings invested in excess passive assets. Subtitle F: Revenue Offsets - Terminates, subject to exception, the Puerto Rico and possessions tax credit after December 31, 1995. Adds a Puerto Rican economic activity credit. (Sec. 1602) Repeals the exclusion for interest on loans used to acquire employer securities. (Sec. 1603) Provides for the treatment of certain amounts derived from foreign corporations as unrelated business taxable income. (Sec. 1604) Revises provisions concerning depreciation under the income forecast method. (Sec. 1605) Revises provisions concerning the exclusion of damages received because of personal injuries or sickness. (Sec. 1606) Repeals the advance repayment of the diesel fuel tax to original purchasers of diesel-powered automobiles and light trucks. Subtitle G: Technical Corrections - Amends the Internal Revenue Code, the Revenue Reconciliation Act of 1990, the Revenue Reconciliation Act of 1993, the Employee Retirement Income Security Act of 1974, the Public Health Service Act, and other legislation to make technical corrections.

This text is taken from the official record. PoliticalRepo does not editorialize.

Timeline

  1. 14 May 1996

    Introduced

    Referred to the House Committee on Ways and Means.

    Source: IntroReferral

  2. 14 May 1996

    Vote

    Ordered to be Reported (Amended) by the Yeas and Nays: 33 - 3.

    Source: Committee

  3. 14 May 1996

    Committee

    Committee Consideration and Mark-up Session Held.

    Source: Committee

  4. 14 May 1996

    Introduced

    Introduced in House

    Source: IntroReferral

  5. 14 May 1996

    Introduced

    Introduced in House

    Source: IntroReferral

  6. 20 May 1996

    Calendars

    Placed on the Union Calendar, Calendar No. 290.

    Source: Calendars

  7. 20 May 1996

    Reported

    Reported (Amended) by the Committee on Ways and Means. H. Rept. 104-586.

    Source: Committee

  8. 20 May 1996

    Reported

    Reported (Amended) by the Committee on Ways and Means. H. Rept. 104-586.

    Source: Committee

  9. 21 May 1996

    Vote

    Rules Committee Resolution H. Res. 440 Reported to House. Rule provides for consideration of H.R. 3448 and H.R. 1227 with 5 hours of general debate. Providing for the consideration of H.R. 3448 and H.R. 1227 in the House. The amendment in the nature of a substitute recommended by the Committee on Ways and Means to H.R. 3448 now printed in the bill shall be considered as read and all points of order against the amendment (except those arising under sec. 425(a) of the Budget Act, shall be waived. The bill and amendment shall be debatable for one hour. The previous question shall be considered as ordered without intervening motion except a motion to recommit with or without instructions. The yeas and nays shall be considered as ordered on passage and on any conference report. After disposition of H.R. 3448, it shall be in order without intervening point of order to consider the bill H.R. 1227 in the House. The amendment in the nature of a substitut...

    Source: Floor

  10. 22 May 1996

    Passed

    Motion to reconsider laid on the table Agreed to without objection.

    Source: Floor

  11. 22 May 1996

    Vote

    On passage Passed by the Yeas and Nays: 414 - 10 (Roll no. 190).

    Source: Floor

  12. 22 May 1996

    Vote

    Passed/agreed to in House: On passage Passed by the Yeas and Nays: 414 - 10 (Roll no. 190).

    Source: Floor

  13. 22 May 1996

    Floor

    The previous question was ordered pursuant to the rule.

    Source: Floor

  14. 22 May 1996

    Vote

    Rule provides for consideration in the House of H.R. 3448 and H.R. 1227 with 5 hours of general debate. The amendment in the nature of a substitute recommended by the Committee on Ways and Means to H.R. 3448 now printed in the bill shall be considered as read and all points of order against the amendment (except those arising under sec. 425(a) of the Budget Act, shall be waived. The bill and amendment shall be debatable for one hour. The previous question shall be considered as ordered without intervening motion except a motion to recommit with or without instructions. The yeas and nays shall be considered as ordered on passage and on any conference report.

    Source: Floor

  15. 22 May 1996

    Floor

    Considered under the provisions of rule H. Res. 440. (consideration: CR H5445-5478)

    Source: Floor

  16. 23 May 1996

    Passed

    The title of the measure was amended. Agreed to without objection.

    Source: Floor

  17. 23 May 1996

    Passed

    Pursuant to the provisions of H. Res. 440, the House appended the text of H.R. 1227 as passed by the House to H.R. 3448.

    Source: Floor

  18. 24 May 1996

    Introduced

    Received in the Senate.

    Source: IntroReferral

  19. 6 June 1996

    Introduced

    Read twice and referred to the Committee on Finance.

    Source: IntroReferral

  20. 12 June 1996

    Reported

    Committee on Finance. Ordered to be reported with an amendment favorably.

    Source: Committee

  21. 18 June 1996

    Calendars

    Placed on Senate Legislative Calendar under General Orders. Calendar No. 438.

    Source: Calendars

  22. 18 June 1996

    Reported

    Committee on Finance. Reported to Senate by Senator Roth with an amendment. With written report No. 104-281.

    Source: Committee

  23. 18 June 1996

    Reported

    Committee on Finance. Reported to Senate by Senator Roth with an amendment. With written report No. 104-281.

    Source: Committee

  24. 8 July 1996

    Floor

    Measure laid before Senate by unanimous consent. (consideration: CR S7366-7413)

    Source: Floor

  25. 9 July 1996

    Floor

    Considered by Senate. (consideration: CR S7421-7468)

    Source: Floor

  26. 9 July 1996

    Vote

    Passed/agreed to in Senate: Passed Senate with amendments by Yea-Nay Vote. 74-24. Record Vote No: 186.

    Source: Floor

  27. 25 July 1996

    ResolvingDifferences

    Senate insists on its amendments asks for a conference, appoints conferees Kassebaum; Kennedy; Jeffords from the Committee on Labor and Human Resources. (consideration: CR S8820)

    Source: ResolvingDifferences

  28. 26 July 1996

    ResolvingDifferences

    The Speaker appointed conferees - from the Committee on Ways and Means for consideration of the House bill (except for title II) and the Senate amendment numbered 1, and modifications committed to conference: Archer, Crane, Thomas, Gibbons, and Rangel.

    Source: ResolvingDifferences

  29. 26 July 1996

    ResolvingDifferences

    The previous question was ordered without objection.

    Source: ResolvingDifferences

  30. 26 July 1996

    Floor

    DEBATE - The House proceeded with one hour of debate on the Clay motion to instruct conferees on the part of the House to report the resolution of the differences between the two Houses, as soon as possible.

    Source: Floor

  31. 26 July 1996

    ResolvingDifferences

    Mr. Clay moved that the House instruct conferees.

    Source: ResolvingDifferences

  32. 26 July 1996

    Passed

    Motion to reconsider laid on the table Agreed to without objection.

    Source: ResolvingDifferences

  33. 26 July 1996

    Passed

    On motion that the House disagree to the Senate amendments, and agree to a conference Agreed to without objection. (consideration: CR H8574)

    Source: ResolvingDifferences

  34. 26 July 1996

    ResolvingDifferences

    Mr. Archer asked unanimous consent that the House disagree to the Senate amendments, and agree to a conference.

    Source: ResolvingDifferences

  35. 26 July 1996

    Floor

    Message on Senate action sent to the House.

    Source: Floor

  36. 30 July 1996

    ResolvingDifferences

    Conference held.

    Source: ResolvingDifferences

  37. 30 July 1996

    ResolvingDifferences

    Conference committee actions: Conference held.

    Source: ResolvingDifferences

  38. 1 August 1996

    Passed

    Conferees agreed to file conference report.

    Source: ResolvingDifferences

  39. 1 August 1996

    Passed

    Conference committee actions: Conferees agreed to file conference report.

    Source: ResolvingDifferences

  40. 1 August 1996

    Reported

    Rules Committee Resolution H. Res. 503 Reported to House. Rule provides for consideration of the conference report to H.R. 3448. Upon adoption of this resolution all points of order against the conference report accompanying the bill and against its consideration shall be waived. The conference report shall be considered as read when called up.

    Source: Floor

  41. 1 August 1996

    ResolvingDifferences

    Conference report H. Rept. 104-737 filed. (text of conference report: CR H9568-9670)

    Source: ResolvingDifferences

  42. 1 August 1996

    ResolvingDifferences

    Conference report filed: Conference report H. Rept. 104-737 filed.(text of conference report: CR H9568-9670)

    Source: ResolvingDifferences

  43. 2 August 1996

    ResolvingDifferences

    Conference papers: message on House action held at the desk in Senate.

    Source: ResolvingDifferences

  44. 2 August 1996

    Vote

    Conference report agreed to in Senate: Senate agreed to conference report by Yea-Nay Vote. 76-22. Record Vote No: 265.(consideration: CR S9527)

    Source: ResolvingDifferences

  45. 2 August 1996

    Vote

    On agreeing to the conference report Agreed to by the Yeas and Nays: 354 - 72 (Roll no. 398). (consideration: CR H9846-9862)

    Source: ResolvingDifferences

  46. 2 August 1996

    Passed

    Motions to reconsider laid on the table Agreed to without objection.

    Source: ResolvingDifferences

  47. 2 August 1996

    Vote

    Conference report agreed to in House: On agreeing to the conference report Agreed to by the Yeas and Nays: 354 - 72 (Roll no. 398).(consideration: CR H9846-9862)

    Source: ResolvingDifferences

  48. 2 August 1996

    ResolvingDifferences

    The previous question was ordered without objection.

    Source: ResolvingDifferences

  49. 2 August 1996

    Floor

    DEBATE - The House proceeded with one hour of debate on the conference report.

    Source: Floor

  50. 2 August 1996

    ResolvingDifferences

    Mr. Archer brought up conference report H. Rept. 104-737 for consideration under the provisions of H. Res. 503.

    Source: ResolvingDifferences

  51. 2 August 1996

    Passed

    Rule H. Res. 503 passed House.

    Source: Floor

  52. 5 August 1996

    Floor

    Message on Senate action sent to the House.

    Source: Floor

  53. 8 August 1996

    Floor

    Presented to President.

    Source: Floor

  54. 8 August 1996

    President

    Presented to President.

    Source: President

  55. 20 August 1996

    Became law

    Became Public Law No: 104-188.

    Source: President

  56. 20 August 1996

    Became law

    Signed by President.

    Source: BecameLaw

  57. 20 August 1996

    President

    Signed by President.

    Source: President

Votes

2 August 1996 · Conference Report Agreed to · On the Conference Report H.R. 3448 · Conference Report Agreed to · Official source

Yes 76 · No 22 · Abstain — · Absent/not voting 2

Showing the first 4 recorded positions. Vote totals above are complete.

9 July 1996 · Bill Passed · On Passage of the Bill H.R. 3448 · Bill Passed · Official source

Yes 74 · No 24 · Abstain — · Absent/not voting 2

Showing the first 4 recorded positions. Vote totals above are complete.

Versions

Documents

20 official files

Enrolled Bill (text)

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  • Enrolled Bill (text)

    Enrolled Bill · EN

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  • Enrolled Bill (PDF)

    Enrolled Bill · EN

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  • Public Law (text)

    Public Law · EN · 21 August 1996

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  • Public Law (PDF)

    Public Law · EN · 21 August 1996

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  • Conference report filed in House

    summary · EN · 1 August 1996

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  • Engrossed Amendment Senate (text)

    Engrossed Amendment Senate · EN · 9 July 1996

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  • Engrossed Amendment Senate (PDF)

    Engrossed Amendment Senate · EN · 9 July 1996

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  • Reported to Senate (text)

    Reported to Senate · EN · 18 June 1996

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  • Reported to Senate (PDF)

    Reported to Senate · EN · 18 June 1996

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  • Reported to Senate with amendment(s)

    summary · EN · 18 June 1996

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  • Referred in Senate (text)

    Referred in Senate · EN · 6 June 1996

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  • Referred in Senate (PDF)

    Referred in Senate · EN · 6 June 1996

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  • Engrossed in House (text)

    Engrossed in House · EN · 22 May 1996

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  • Engrossed in House (PDF)

    Engrossed in House · EN · 22 May 1996

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  • Passed House amended

    summary · EN · 22 May 1996

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  • Reported in House (text)

    Reported in House · EN · 20 May 1996

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  • Reported in House (PDF)

    Reported in House · EN · 20 May 1996

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  • Introduced in House (text)

    Introduced in House · EN · 14 May 1996

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  • Introduced in House (PDF)

    Introduced in House · EN · 14 May 1996

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  • Introduced in House

    summary · EN · 14 May 1996

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