,i  #aac? ,,congress  #b;d ,session  ,h4
 ,r4 #dgah  ,,9 ,,! ,,h\se ,,(          
,,repres5tatives  ,may #bb1 #bjad ,mr4  
,tib]i 7= himself1 ,mr4 ,s*ock1 ,mr4 ,"y
 ( ,indiana1 ,mr4 ,re$1 ,mr4 ,pauls51   
,mr4 ,griff9 ( ,arkansas1 ,mr4 ,nunes1  
,mr4 ,kelly ( ,p5nsylvania1 ,mr4 ,brady 
( ,texas1 ,ms4 ,j5k9s1 ,mr4 ,b\/any1    
,mr4 ,m>*ant1 ,mrs4 ,black1 ,mr4        
,bu*anan1 ,mr4 ,r5acci1 ,mr4 ,g]la*1    
,mr4 ,rei*]t1 ,mr4 ,huiz5ga ( ,mi*igan1 
& ,mr4 ,roskam7 introduc$ ! foll[+ bill2
 :i* 0 ref]r$ to ! ,committee on ,ways &
 ,means  ,a ,,bill  ,to am5d ! ,int]nal 
,rev5ue ,code ( #aihf to modify & make  
p]man5t bonus depreciation4  #a4 ,bonus 
depreciation modifi$ & made p]man5t  7a7
 ,made p]man5t2 inclusion ( qualifi$    
retail improvem5t prop]ty ,section      
#afh7k77#b7 ( ! ,int]nal ,rev5ue ,code (
 #aihf is am5d$ to read z foll[s3  7#b7 
,qualifi$ prop]ty ,= purposes ( ?is     
subsection--  7,a7 ,9 g5]al ,! t]m      
qualifi$ prop]ty means prop]ty--  7i7   
7,i7 to :i* ?is section applies :i* has 

a recov]y p]iod ( #bj ye>s or less1     
7,,ii7 :i* is comput] s(tw>e 7z def9$ 9 
section #afg7;f77#a77;,b77 = :i* a      
d$uction is all[able "u section #afg7;a7
 )\t reg>d to ?is subsection1  7,,iii7  
:i* is wat] utility prop]ty1  7,,iv7 :i*
 is qualifi$ leasehold improvem5t       
prop]ty1 or  7,v7 :i* is qualifi$ retail
 improvem5t prop]ty1 &  7ii7 ! orig9al  
use ( :i* comm5ces ) ! taxpay]4  7,b7   
,exception = alt]native depreciation    
prop]ty ,! t]m qualifi$ prop]ty %all n  
include any prop]ty to :i* ! alt]native 
depreciation sy/em "u subsection 7g7    
applies1 det]m9$--  7i7 )\t reg>d to    
p>agraph 7#g7 ( subsection 7g7 7relat+  
to election to h sy/em apply71 &  7ii7  
aft] application ( section #bhj;,f7b7   
7relat+ to li/$ prop]ty ) limit$ bus9ess
 use74  7,c7 ,special rules  7i7        
,sale-leasebacks ,= purposes ( clause   
7ii7 & subp>agraph 7,a77ii71 if prop]ty 
is--  7,i7 orig9ally plac$ 9 s]vice by a
 p]son1 &  7,,ii7 sold & leas$ back by  
su* p]son )9 #c mon?s aft] ! date su*   

prop]ty 0 orig9ally plac$ 9 s]vice1  su*
 prop]ty %all be treat$ z orig9ally     
plac$ 9 s]vice n e>li] ?an ! date on :i*
 su* prop]ty is us$ "u ! leaseback      
ref]r$ to 9 subclause 7,,ii74  7ii7     
,syndication ,= purposes ( subp>agraph  
7,a77ii71 if--  7,i7 prop]ty is         
orig9ally plac$ 9 s]vice by ! lessor (  
su* prop]ty1  7,,ii7 su* prop]ty is sold
 by su* lessor or any subsequ5t pur*as] 
)9 #c mon?s aft] ! date su* prop]ty 0   
orig9ally plac$ 9 s]vice 7or1 9 ! case (
 multiple units ( prop]ty subject to !  
same lease1 )9 #c mon?s aft] ! date !   
f9al unit is plac$ 9 s]vice1 s long z ! 
p]iod betwe5 ! "t ! fir/ unit is plac$ 9
 s]vice & ! "t ! la/ unit is plac$ 9    
s]vice does n exce$ #ab mon?s71 &       
7,,iii7 ! us] ( su* prop]ty aft] ! la/  
sale dur+ su* #c-mon? p]iod rema9s !    
same z :5 su* prop]ty 0 orig9ally plac$ 
9 s]vice1  su* prop]ty %all be treat$ z 
orig9ally plac$ 9 s]vice n e>li] ?an !  
date ( su* la/ sale4  7,d7 ,coord9ation 
) section #bhj;,f ,= purposes ( section 

#bhj;,f3  7i7 ,automobiles ,9 ! case ( a
 pass5g] automobile 7z def9$ 9 section  
#bhj;,f7d77#e77 :i* is qualifi$ prop]ty1
 ! ,secret>y %all increase ! limitation 
"u section #bhj;,f7a77#a77;,a77i7 by    
#h1jjj4  7ii7 ,li/$ prop]ty ,! d$uction 
all[able "u p>agraph 7#a7 %all be tak5  
into acc\nt 9 comput+ any recapture     
am\nt "u section #bhj;,f7b77#b74  7iii7 
,inflation adju/m5t ,9 ! case ( any     
taxable ye> beg9n+ 9 a cal5d> ye> aft]  
#bjad1 ! #h1jjj am\nt 9 clause 7i7 %all 
be increas$ by an am\nt equal to--  7,i7
 su* doll> am\nt1 multipli$ by  7,,ii7 !
 automobile price inflation adju/m5t    
det]m9$ "u section                      
#bhj;,f7d77#g77;,b77i7 = ! cal5d> ye> 9 
:i* su* taxable ye> beg9s by sub/itut+  
#bjac = #aihg 9 subclause 7,,ii7 !re(4  
,if any increase "u ! prec$+ s5t5ce is n
 a multiple ( #ajj1 su* increase %all be
 r\nd$ to ! ne>e/ multiple ( #ajj4  7,e7
 ,d$uction all[$ 9 comput+ m9imum tax ,=
 purposes ( det]m9+ alt]native m9imum   
taxable income "u section #ee1 !        

d$uction "u section #afg = qualifi$     
prop]ty %all be det]m9$ )\t reg>d to any
 adju/m5t "u section #ef4  4  7b7       
,expansion ( election ,to accel]ate     
,,amt cr$its 9 lieu ( bonus depreciation
 ,section #afh7k77#d7 ( su* ,code is    
am5d$ to read z foll[s3  7#d7 ,election 
to accel]ate amt cr$its 9 lieu ( bonus  
depreciation  7,a7 ,9 g5]al ,if a       
corporation elects to h ?is p>agraph    
apply = any taxable ye>--  7i7 p>agraphs
 7#a77;,a71 7#b77;,d77i71 & 7#e77;,a77i7
 %all n apply = su* taxable ye>1  7ii7 !
 applicable depreciation me?od us$ "u   
?is section ) respect to any qualifi$   
prop]ty %all be ! /raight l9e me?od1 &  
7iii7 ! limitation impos$ by section    
#ec7;c7 = su* taxable ye> %all be       
increas$ by ! bonus depreciation am\nt  
:i* is det]m9$ = su* taxable ye> "u     
subp>agraph 7,b74  7,b7 ,bonus          
depreciation am\nt ,= purposes ( ?is    
p>agraph--  7i7 ,9 g5]al ,! bonus       
depreciation am\nt = any taxable ye> is 
an am\nt equal to #bj p]c5t ( ! excess  

7if any7 (--  7,i7 ! aggregate am\nt (  
depreciation :i* w\ld be all[$ "u ?is   
section = qualifi$ prop]ty plac$ 9      
s]vice by ! taxpay] dur+ su* taxable ye>
 if p>agraph 7#a7 appli$ to all su*     
prop]ty1 ov]  7,,ii7 ! aggregate am\nt (
 depreciation :i* w\ld be all[$ "u ?is  
section = qualifi$ prop]ty plac$ 9      
s]vice by ! taxpay] dur+ su* taxable ye>
 if p>agraph 7#a7 did n apply to any su*
 prop]ty4  ,! aggregate am\nts det]m9$  
"u subclauses 7,i7 & 7,,ii7 %all be     
det]m9$ )\t reg>d to any election made  
"u subsection 7b77#b77;,d71             
7b77#c77;,d71 or 7g77#g7 & )\t reg>d to 
subp>agraph 7,a77ii74  7ii7 ,limitation 
,! bonus depreciation am\nt = any       
taxable ye> %all n exce$ ! less] (--    
7,i7 #ej p]c5t ( ! m9imum tax cr$it "u  
section #ec7;b7 = ! fir/ taxable ye>    
end+ aft] ,decemb] #ca1 #bjac1 or       
7,,ii7 ! m9imum tax cr$it "u section    
#ec7;b7 = su* taxable ye> det]m9$ by    
tak+ into acc\nt only ! adju/$ m9imum   
tax = taxable ye>s end+ be=e ,janu>y #a1

 #bjad 7det]m9$ by treat+ cr$its z all[$
 on a fir/-91 fir/-out basis74  7iii7   
,aggregation rule ,all corporations :i* 
are treat$ z a s+le employ] "u section  
#eb7;a7 %all be treat$--  7,i7 z #a     
taxpay] = purposes ( ?is p>agraph1 &    
7,,ii7 z hav+ elect$ ! application ( ?is
 p>agraph if any su* corporation s      
elects4  7,c7 ,cr$it refundable ,=      
purposes ( section #fdja7;b71 !         
aggregate increase 9 ! cr$its all[able  
"u "p ,,iv ( sub*apt] ,a = any taxable  
ye> result+ f ! application ( ?is       
p>agraph %all be treat$ z all[$ "u      
subp>t ,c ( su* "p 7& n any o!r subp>t74
  7,d7 ,o!r rules  7i7 ,election ,any   
election "u ?is p>agraph may be revok$  
only ) ! cons5t ( ! ,secret>y4  7ii7    
,p>tn]%ips ) elect+ p>tn]s ,9 ! case ( a
 corporation :i* is a p>tn] 9 a p>tn]%ip
 & :i* makes an election "u subp>agraph 
7,a7 = ! taxable ye>1 = purposes (      
det]m9+ su* corporation's di/ributive   
%>e ( p>tn]%ip items "u section #gjb =  
su* taxable ye>--  7,i7 p>agraphs       

7#a77;,a71 7#b77;,d77i71 & 7#e77;,a77i7 
%all n apply1 &  7,,ii7 ! applicable    
depreciation me?od us$ "u ?is section ) 
respect to any qualifi$ prop]ty %all be 
! /raight l9e me?od4  7iii7 ,c]ta9      
p>tn]%ips ,9 ! case ( a p>tn]%ip 9 :i* m
 ?an #ej p]c5t ( ! capital & pr(its     
int]e/s are own$ 7directly or           
indirectly7 at all times dur+ ! taxable 
ye> by #a corporation 7or by            
corporations treat$ z #a taxpay] "u     
subp>agraph 7,b77iii771 ea* p>tn] %all  
compute its bonus depreciation am\nt "u 
clause 7i7 ( subp>agraph 7,b7 by tak+   
into acc\nt its di/ributive %>e ( !     
am\nts det]m9$ by ! p>tn]%ip "u         
subclauses 7,i7 & 7,,ii7 ( su* clause = 
! taxable ye> ( ! p>tn]%ip end+ ) or )9 
! taxable ye> ( ! p>tn]4  4  7c7        
,special rules = trees & v9es be>+      
fruits & nuts ,section #afh7k7 ( su*    
,code is am5d$--  7#a7 by /rik+ p>agraph
 7#e71 &  7#b7 by ins]t+ aft] p>agraph  
7#d7 ! foll[+ new p>agraph3  7#e7       
,special rules = trees & v9es be>+      

fruits & nuts  7,a7 ,9 g5]al ,9 ! case (
 any tree or v9e be>+ fruits or nuts :i*
 is plant$1 or is graft$ to a plant t   
has already be5 plant$1 by ! taxpay] 9 !
 ord9>y c\rse ( ! taxpay]'s f>m+ bus9ess
 7z def9$ 9 section #bfc;,a7e77#d77--   
7i7 a depreciation d$uction equal to #ej
 p]c5t ( ! adju/$ basis ( su* tree or   
v9e %all be all[$ "u section #afg7;a7 = 
! taxable ye> 9 :i* su* tree or v9e is s
 plant$ or graft$1 &  7ii7 ! adju/$     
basis ( su* tree or v9e %all be r$uc$ by
 ! am\nt ( su* d$uction4  7,b7 ,election
 out ,if a taxpay] makes an election "u 
?is subp>agraph = any taxable ye>1 ?is  
p>agraph %all n apply to any tree or v9e
 plant$ or graft$ dur+ su* taxable ye>4 
,an election "u ?is subp>agraph may be  
revok$ only ) ! cons5t ( ! ,secret>y4   
7,c7 ,additional depreciation may be    
claim$ only once ,if ?is p>agraph       
applies to any tree or v9e1 su* tree or 
v9e %all n be treat$ z qualifi$ prop]ty 
9 ! taxable ye> 9 :i* plac$ 9 s]vice4   
7,d7 ,coord9ation ) election to         

accel]ate ,,amt cr$its ,if a corporation
 makes an election "u p>agraph 7#d7 =   
any taxable ye>1 ! am\nt "u p>agraph    
7#d77;,b77i77,i7 = su* taxable ye> %all 
be increas$ by ! am\nt det]m9$ "u       
subp>agraph 7,a77i7 = su* taxable ye>4  
7,e7 ,d$uction all[$ 9 comput+ m9imum   
tax ,rules simil> to ! rules ( p>agraph 
7#b77;,e7 %all apply = purposes ( ?is   
p>agraph4  4  7d7 ,con=m+ am5dm5ts  7#a7
 ,section #afh7;e77#h7 ( su* ,code is   
am5d$ by /rik+ subp>agraph 7,d74  7#b7  
,section #afh7k7 ( su* ,code is am5d$ by
 add+ at ! end ! foll[+ new p>agraph3   
7#f7 ,election out ,if a taxpay] makes  
an election "u ?is p>agraph ) respect to
 any class ( prop]ty = any taxable ye>1 
?is subsection %all n apply to all      
prop]ty 9 su* class plac$ 9 s]vice 7or1 
9 ! case ( p>agraph 7#e71 plant$ or     
graft$7 dur+ su* taxable ye>4 ,an       
election "u ?is p>agraph may be revok$  
only ) ! cons5t ( ! ,secret>y4  4  7#c7 
,section #afh7l77#e7 ( su* ,code is     
am5d$ by /rik+ section #afh7k77#b77;,g7 

& ins]t+ section #afh7k77#b77;,e74  7#d7
 ,section #bfc;,a7c7 ( su* ,code is     
am5d$ by add+ at ! end ! foll[+ new     
p>agraph3  7#g7 ,coord9ation ) section  
#afh7k77#e7 ,?is section %all n apply to
 any am\nt all[able z a d$uction by     
reason ( section #afh7k77#e7 7relat+ to 
special rules = trees & v9es be>+ fruits
 & nuts74  4  7#e7 ,section             
#dfj7;c77#f77;,b7 ( su* ,code is am5d$  
by /rik+ :i*-- & all t foll[s & ins]t+  
:i* has a recov]y p]iod ( #g ye>s or    
less44  7#f7 ,section #afh7k7 ( su*     
,code is am5d$ by /rik+ acquir$ aft]    
,decemb] #ca1 #bjjg1 & be=e ,janu>y #a1 
#bjad 9 ! head+ !re(4  7e7 ,effective   
dates  7#a7 ,9 g5]al ,except z o!rwise  
provid$ 9 ?is subsection1 ! am5dm5ts    
made by ?is subsection %all apply to    
prop]ty plac$ 9 s]vice aft] ,decemb]    
#ca1 #bjac4  7#b7 ,expansion ( election 
to accel]ate amt cr$its 9 lieu ( bonus  
depreciation  7,a7 ,9 g5]al ,! am5dm5t  
made by subsection 7b7 7o!r ?an s mu* ( 
su* am5dm5t z relates to section        

#afh7k77#d77;,d77iii7 ( su* ,code1 z    
add$ by su* am5dm5t7 %all apply to      
taxable ye>s end+ aft] ,decemb] #ca1    
#bjac4  7,b7 ,transitional rule ,9 !    
case ( a taxable ye> beg9n+ be=e ,janu>y
 #a1 #bjad1 & end+ aft] ,decemb] #ca1   
#bjac1 ! bonus depreciation am\nt       
det]m9$ "u section #afh7k77#d7 ( su*    
,code = su* ye> %all be ! sum (--  7i7  
su* am\nt det]m9$ )\t reg>d to !        
am5dm5ts made by ?is section &--  7,i7  
by tak+ into acc\nt only prop]ty plac$ 9
 s]vice be=e ,janu>y #a1 #bjad1 &       
7,,ii7 by multiply+ ! limitation "u     
section #afh7k77#d77;,c77ii7 ( su* ,code
 7det]m9$ )\t reg>d to ! am5dm5ts made  
by ?is section7 by a fraction ! num]ator
 ( :i* is ! numb] ( days 9 ! taxable ye>
 be=e ,janu>y #a1 #bjad1 & ! d5om9ator (
 :i* is ! numb] ( days 9 ! taxable ye>1 
&  7ii7 su* am\nt det]m9$ aft] tak+ into
 acc\nt ! am5dm5ts made by ?is section  
&--  7,i7 by tak+ into acc\nt only      
prop]ty plac$ 9 s]vice aft] ,decemb]    
#ca1 #bjac1 &  7,,ii7 by multiply+ !    

limitation "u section                   
#afh7k77#d77;,b77ii7 ( su* ,code 7z     
am5d$ by ?is section7 by a fraction !   
num]ator ( :i* is ! numb] ( days 9 !    
taxable ye> aft] ,decemb] #ca1 #bjac1 & 
! d5om9ator ( :i* is ! numb] ( days 9 ! 
taxable ye>4  7#c7 ,special rules =     
c]ta9 trees & v9es ,! am5dm5t made by   
subsection 7c77#b7 %all apply to trees &
 v9es plant$ or graft$ aft] ,decemb]    
#ca1 #bjac4