“The term `eligible small business' means a business that meets the gross receipts test of section 448(c), determined--”
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--”
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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Provide for reconciliation pursuant to title II of H. Con. Res. 14, Public Law 119-21, sec. 70401, 139 Stat. 212 (2025). https://www.govinfo.gov/content/pkg/PLAW-119publ21/html/PLAW-119publ21.htm
This page
“An eligible small business is set by a five year receipts test,” Provide for reconciliation pursuant to title II of H. Con. Res. 14, section 70401, Sec. 70401. Read the Mandate, https://readthemandate.org/pl-119-21/proposal/sec70401-small-business/ (retrieved October 10, 2026).
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