Congress gave itself another four months to consider changes in the Small Business Innovation Research program.

Through SBIR, 11 federal agencies award at least 2.5 percent of their outside research dollars to small businesses. The program's authorization was scheduled to expire May 31, but Congress extended it through Sept. 30. President Barack Obama signed the bill June 1.

This gives the House and the Senate more time to resolve the differences in their SBIR reauthorization bills. The biggest issue is whether small companies majority-owned by venture capital firms should be eligible to receive SBIR awards.

These types of companies have been shut out of the SBIR program since 2003, when an administrative law judge ruled they don't qualify as small businesses since they aren't independently owned.

The Biotechnology Industry Organization and the National Venture Capital Association have been lobbying Congress ever since to overturn this ruling and make VC-owned firms eligible for the program.

Bills pending in both the House and Senate would allow VC-owned firms to win a limited share of the awards, but the House bill is much more generous to VC-owned firms.

The Senate bill failed to clear a procedural hurdle last month because of a dispute over unrelated amendments, but the House bill has "widespread bipartisan support," said Rep. Sam Graves, R-Mo., who chairs the House Small Business Committee.

"I hope that the House can act very soon to pass this legislation and work with the Senate towards a long-term solution that will bring more certainty to the small-business research and development community," Graves said.

The Internal Revenue Service is considering changing the New Markets Tax Credit to encourage more investment in businesses in low-income neighborhoods.

The tax credit is awarded to taxpayers who make qualified equity investments in community development organizations that, in turn, invest or lend to businesses in low-income communities. Through 2009, the tax credit has helped spur $16 billion of investments in 3,000 businesses and real estate projects.

Only one-third of these investments have been in businesses that aren't real estate-related, however.

Based on comments from investors, community development organizations and businesses, the IRS has identified changes in the tax credit rules that could encourage more investment in non-real estate businesses.

These include revising reinvestment requirements for organizations that invest in operating businesses and streamlining compliance requirements.

The IRS published its proposals in the June 7 issue of the Federal Register and will accept written and electronic comments on them until Sept. 6. It also will hold a public meeting on the issue Sept. 29 in Washington, D.C.

The Minority Business Development Agency is soliciting applications from organizations interested in running a new center that will help minority-owned businesses win federal contracts.

The center will be located in the Washington, D.C., area but will serve businesses from around the country.

"MBDA has never had a center solely focusing on federal contracting, and we are confident this program will serve as an invaluable tool in facilitating teaming arrangements, joint ventures and access to contracts," said Alex Done, MBDA's associate director for business development.

The center will help minority-owned businesses of all sizes prepare for, identify and obtain federal contracting opportunities.

But it will particularly target businesses with more than $1 million or more in annual revenue in high-growth industries such as clean energy, health care and broadband technology.

Businesses, nonprofit organizations, educational institutions and state and local governments are eligible to apply for the $1.75 million, five-year contract to run the center.

Applications are due by July 7.

Corporate financial executives became more pessimistic about the U.S. economy in the second quarter.

That's according to a survey conducted by the American Institute of Certified Public Accountants, which found that only 33 percent of CPAs serving in executive positions were optimistic about the economy this quarter.

That's down 15 percentage points from the first quarter.

As a result, hiring and expansion plans have moderated, and concerns about inflation increased - due to rising raw material costs and energy prices. Companies also continue to struggle with health-care costs. Most employers plan to require workers to contribute more to cover the cost of health insurance next year.

"For the last five quarters, employee health-care costs ranked as a top challenge for companies," said Stuart Benton, chief financial officer for Bradford Soap Works Inc. in West Warwick, R.I. "As costs go up year after year, companies are being forced onto a ledge and are considering a range of cost-containment strategies, including requiring workers to pay more for benefits."

Kent Hoover: khoover@bizjournals.com.