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Provide for reconciliation pursuant to title II of H. Con. Res. 14Section 70401 › Proposal

An eligible small business is set by a five year receipts test

To provide for reconciliation pursuant to title II of H. Con. Res. 14, section 70401, Sec. 70401. Written by .

An eligible small business is set by a five year receipts test

The document says “meansWho acts: CongressHow: statuteSec. 70401 in the PDF
What the document says

“The term `eligible small business' means a business that meets the gross receipts test of section 448(c), determined--”

To provide for reconciliation pursuant to title II of H. Con. Res. 14, Sec. 70401

The section adds a new paragraph (4) to section 45F(c) of the Internal Revenue Code of 1986 defining an eligible small business as one meeting the gross receipts test of section 448(c), read with five-taxable-year in place of three-taxable-year in paragraph (1) and five-year in place of three-year in paragraph (3)(A).

What the document actually says

“The term `eligible small business' means a business that meets the gross receipts test of section 448(c), determined--”

To provide for reconciliation pursuant to title II of H. Con. Res. 14, Sec. 70401
That sentence, in plain words

The term covers a business that meets a receipts test. That test sits in the tax code. Two changes to it follow.

What this is about

Both changes stretch the test to five years. It normally runs over three. That older test is not indexed here.

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