,,ib ,union ,calendar ,no4 #cha #aacth ,,congress #b;d ,session ,h4 ,r4 #dgah ,report ,no4 #aac-eji ,,in ,,the ,,house ,,of ,,representatives ,may #bb1 #bjad ,mr4 ,tiberi 7for himself1 ,mr4 ,schock1 ,mr4 ,young of ,indiana1 ,mr4 ,reed1 ,mr4 ,paulsen1 ,mr4 ,griffin of ,arkansas1 ,mr4 ,nunes1 ,mr4 ,kelly of ,pennsylvania1 ,mr4 ,brady of ,texas1 ,ms4 ,jenkins1 ,mr4 ,boustany1 ,mr4 ,marchant1 ,mrs4 ,black1 ,mr4 ,buchanan1 ,mr4 ,renacci1 ,mr4 ,gerlach1 ,mr4 ,reichert1 ,mr4 ,huizenga of ,michigan1 and ,mr4 ,roskam7 introduced the following bill2 which was referred to the ,committee on ,ways and ,means ,july #c1 #bjad ,additional sponsors3 ,mr4 ,price of ,georgia1 ,mr4 ,kline1 ,mr4 ,sessions1 ,mr4 ,gardner1 ,mr4 ,stivers1 ,mr4 ,denham1 ,mr4 ,neugebauer1 and ,mr4 ,peters of ,michigan ,july #c1 #bjad ,reported with an amendment1 committed to the ,committee of the ,whole ,house on the ,state of the ,union1 and ordered to be printed ,strike out all after the enacting clause and insert the part printed in italic ,for text of introduced bill1 see copy of bill as introduced on ,may #bb1 #bjad ,a ,,bill ,to amend the ,internal ,revenue ,code of #aihf to modify and make permanent bonus depreciation4 #a4 ,bonus depreciation modified and made permanent 7a7 ,made permanent2 inclusion of qualified retail improvement property ,section #afh7k77#b7 of the ,internal ,revenue ,code of #aihf is amended to read as follows3 7#b7 ,qualified property ,for purposes of this subsection-- 7,a7 ,in general ,the term qualified property means property-- 7i7 7,i7 to which this section applies which has a recovery period of #bj years or less1 7,,ii7 which is computer software 7as defined in section #afg7;f77#a77;,b77 for which a deduction is allowable under section #afg7;a7 without regard to this subsection1 7,,iii7 which is water utility property1 7,,iv7 which is qualified leasehold improvement property1 or 7,v7 which is qualified retail improvement property1 and 7ii7 the original use of which commences with the taxpayer4 7,b7 ,exception for alternative depreciation property ,the term qualified property shall not include any property to which the alternative depreciation system under subsection 7g7 applies1 determined-- 7i7 without regard to paragraph 7#g7 of subsection 7g7 7relating to election to have system apply71 and 7ii7 after application of section #bhj;,f7b7 7relating to listed property with limited business use74 7,c7 ,special rules 7i7 ,sale-leasebacks ,for purposes of clause 7ii7 and subparagraph 7,a77ii71 if property is-- 7,i7 originally placed in service by a person1 and 7,,ii7 sold and leased back by such person within #c months after the date such property was originally placed in service1 such property shall be treated as originally placed in service not earlier than the date on which such property is used under the leaseback referred to in subclause 7,,ii74 7ii7 ,syndication ,for purposes of subparagraph 7,a77ii71 if-- 7,i7 property is originally placed in service by the lessor of such property1 7,,ii7 such property is sold by such lessor or any subsequent purchaser within #c months after the date such property was originally placed in service 7or1 in the case of multiple units of property subject to the same lease1 within #c months after the date the final unit is placed in service1 so long as the period between the time the first unit is placed in service and the time the last unit is placed in service does not exceed #ab months71 and 7,,iii7 the user of such property after the last sale during such #c-month period remains the same as when such property was originally placed in service1 such property shall be treated as originally placed in service not earlier than the date of such last sale4 7,d7 ,coordination with section #bhj;,f ,for purposes of section #bhj;,f-- 7i7 ,automobiles ,in the case of a passenger automobile 7as defined in section #bhj;,f7d77#e77 which is qualified property1 the ,secretary shall increase the limitation under section #bhj;,f7a77#a77;,a77i7 by #h1jjj4 7ii7 ,listed property ,the deduction allowable under paragraph 7#a7 shall be taken into account in computing any recapture amount under section #bhj;,f7b77#b74 7iii7 ,inflation adjustment ,in the case of any taxable year beginning in a calendar year after #bjad1 the #h1jjj amount in clause 7i7 shall be increased by an amount equal to-- 7,i7 such dollar amount1 multiplied by 7,,ii7 the automobile price inflation adjustment determined under section #bhj;,f7d77#g77;,b77i7 for the calendar year in which such taxable year begins by substituting #bjac for #aihg in subclause 7,,ii7 thereof4 ,if any increase under the preceding sentence is not a multiple of #ajj1 such increase shall be rounded to the nearest multiple of #ajj4 7,e7 ,deduction allowed in computing minimum tax ,for purposes of determining alternative minimum taxable income under section #ee1 the deduction under section #afg for qualified property shall be determined without regard to any adjustment under section #ef4 4 7b7 ,expansion of election to accelerate amt credits in lieu of bonus depreciation ,section #afh7k77#d7 of such ,code is amended to read as follows3 7#d7 ,election to accelerate amt credits in lieu of bonus depreciation 7,a7 ,in general ,if a corporation elects to have this paragraph apply for any taxable year-- 7i7 paragraphs 7#a77;,a71 7#b77;,d77i71 and 7#e77;,a77i7 shall not apply for such taxable year1 7ii7 the applicable depreciation method used under this section with respect to any qualified property shall be the straight line method1 and 7iii7 the limitation imposed by section #ec7;c7 for such taxable year shall be increased by the bonus depreciation amount which is determined for such taxable year under subparagraph 7,b74 7,b7 ,bonus depreciation amount ,for purposes of this paragraph-- 7i7 ,in general ,the bonus depreciation amount for any taxable year is an amount equal to #bj percent of the excess 7if any7 of-- 7,i7 the aggregate amount of depreciation which would be allowed under this section for qualified property placed in service by the taxpayer during such taxable year if paragraph 7#a7 applied to all such property1 over 7,,ii7 the aggregate amount of depreciation which would be allowed under this section for qualified property placed in service by the taxpayer during such taxable year if paragraph 7#a7 did not apply to any such property4 ,the aggregate amounts determined under subclauses 7,i7 and 7,,ii7 shall be determined without regard to any election made under subsection 7b77#b77;,d71 7b77#c77;,d71 or 7g77#g7 and without regard to subparagraph 7,a77ii74 7ii7 ,limitation ,the bonus depreciation amount for any taxable year shall not exceed the lesser of-- 7,i7 #ej percent of the minimum tax credit under section #ec7;b7 for the first taxable year ending after ,december #ca1 #bjac1 or 7,,ii7 the minimum tax credit under section #ec7;b7 for such taxable year determined by taking into account only the adjusted net minimum tax for taxable years ending before ,january #a1 #bjad 7determined by treating credits as allowed on a first-in1 first-out basis74 7iii7 ,aggregation rule ,all corporations which are treated as a single employer under section #eb7;a7 shall be treated-- 7,i7 as #a taxpayer for purposes of this paragraph1 and 7,,ii7 as having elected the application of this paragraph if any such corporation so elects4 7,c7 ,credit refundable ,for purposes of section #fdja7;b71 the aggregate increase in the credits allowable under part ,,iv of subchapter ,a for any taxable year resulting from the application of this paragraph shall be treated as allowed under subpart ,c of such part 7and not any other subpart74 7,d7 ,other rules 7i7 ,election ,any election under this paragraph may be revoked only with the consent of the ,secretary4 7ii7 ,partnerships with electing partners ,in the case of a corporation which is a partner in a partnership and which makes an election under subparagraph 7,a7 for the taxable year1 for purposes of determining such corporation's distributive share of partnership items under section #gjb for such taxable year-- 7,i7 paragraphs 7#a77;,a71 7#b77;,d77i71 and 7#e77;,a77i7 shall not apply1 and 7,,ii7 the applicable depreciation method used under this section with respect to any qualified property shall be the straight line method4 7iii7 ,certain partnerships ,in the case of a partnership in which more than #ej percent of the capital and profits interests are owned 7directly or indirectly7 at all times during the taxable year by #a corporation 7or by corporations treated as #a taxpayer under subparagraph 7,b77iii771 each partner shall compute its bonus depreciation amount under clause 7i7 of subparagraph 7,b7 by taking into account its distributive share of the amounts determined by the partnership under subclauses 7,i7 and 7,,ii7 of such clause for the taxable year of the partnership ending with or within the taxable year of the partner4 4 7c7 ,special rules for trees and vines bearing fruits and nuts ,section #afh7k7 of such ,code is amended-- 7#a7 by striking paragraph 7#e71 and 7#b7 by inserting after paragraph 7#d7 the following new paragraph3 7#e7 ,special rules for trees and vines bearing fruits and nuts 7,a7 ,in general ,in the case of any tree or vine bearing fruits or nuts which is planted1 or is grafted to a plant that has already been planted1 by the taxpayer in the ordinary course of the taxpayer's farming business 7as defined in section #bfc;,a7e77#d77-- 7i7 a depreciation deduction equal to #ej percent of the adjusted basis of such tree or vine shall be allowed under section #afg7;a7 for the taxable year in which such tree or vine is so planted or grafted1 and 7ii7 the adjusted basis of such tree or vine shall be reduced by the amount of such deduction4 7,b7 ,election out ,if a taxpayer makes an election under this subparagraph for any taxable year1 this paragraph shall not apply to any tree or vine planted or grafted during such taxable year4 ,an election under this subparagraph may be revoked only with the consent of the ,secretary4 7,c7 ,additional depreciation may be claimed only once ,if this paragraph applies to any tree or vine1 such tree or vine shall not be treated as qualified property in the taxable year in which placed in service4 7,d7 ,coordination with election to accelerate ,,amt credits ,if a corporation makes an election under paragraph 7#d7 for any taxable year1 the amount under paragraph 7#d77;,b77i77,i7 for such taxable year shall be increased by the amount determined under subparagraph 7,a77i7 for such taxable year4 7,e7 ,deduction allowed in computing minimum tax ,rules similar to the rules of paragraph 7#b77;,e7 shall apply for purposes of this paragraph4 4 7d7 ,conforming amendments 7#a7 ,section #afh7;e77#h7 of such ,code is amended by striking subparagraph 7,d74 7#b7 ,section #afh7k7 of such ,code is amended by adding at the end the following new paragraph3 7#f7 ,election out ,if a taxpayer makes an election under this paragraph with respect to any class of property for any taxable year1 this subsection shall not apply to all property in such class placed in service 7or1 in the case of paragraph 7#e71 planted or grafted7 during such taxable year4 ,an election under this paragraph may be revoked only with the consent of the ,secretary4 4 7#c7 ,section #afh7l77#e7 of such ,code is amended by striking section #afh7k77#b77;,g7 and inserting section #afh7k77#b77;,e74 7#d7 ,section #bfc;,a7c7 of such ,code is amended by adding at the end the following new paragraph3 7#g7 ,coordination with section #afh7k77#e7 ,this section shall not apply to any amount allowable as a deduction by reason of section #afh7k77#e7 7relating to special rules for trees and vines bearing fruits and nuts74 4 7#e7 ,section #dfj7;c77#f77;,b7 of such ,code is amended by striking which-- and all that follows and inserting which has a recovery period of #g years or less44 7#f7 ,section #afh7k7 of such ,code is amended by striking acquired after ,december #ca1 #bjjg1 and before ,january #a1 #bjad in the heading thereof4 7e7 ,effective dates 7#a7 ,in general ,except as otherwise provided in this subsection1 the amendments made by this section shall apply to property placed in service after ,december #ca1 #bjac4 7#b7 ,expansion of election to accelerate amt credits in lieu of bonus depreciation 7,a7 ,in general ,the amendment made by subsection 7b7 7other than so much of such amendment as relates to section #afh7k77#d77;,d77iii7 of such ,code1 as added by such amendment7 shall apply to taxable years ending after ,december #ca1 #bjac4 7,b7 ,transitional rule ,in the case of a taxable year beginning before ,january #a1 #bjad1 and ending after ,december #ca1 #bjac1 the bonus depreciation amount determined under section #afh7k77#d7 of such ,code for such year shall be the sum of-- 7i7 such amount determined without regard to the amendments made by this section and-- 7,i7 by taking into account only property placed in service before ,january #a1 #bjad1 and 7,,ii7 by multiplying the limitation under section #afh7k77#d77;,c77ii7 of such ,code 7determined without regard to the amendments made by this section7 by a fraction the numerator of which is the number of days in the taxable year before ,january #a1 #bjad1 and the denominator of which is the number of days in the taxable year1 and 7ii7 such amount determined after taking into account the amendments made by this section and-- 7,i7 by taking into account only property placed in service after ,december #ca1 #bjac1 and 7,,ii7 by multiplying the limitation under section #afh7k77#d77;,b77ii7 of such ,code 7as amended by this section7 by a fraction the numerator of which is the number of days in the taxable year after ,december #ca1 #bjac1 and the denominator of which is the number of days in the taxable year4 7#c7 ,special rules for certain trees and vines ,the amendment made by subsection 7c77#b7 shall apply to trees and vines planted or grafted after ,december #ca1 #bjac4 ,july #c1 #bjad ,reported with an amendment1 committed to the ,committee of the ,whole ,house on the ,state of the ,union1 and ordered to be printed