,,ii  #aacth ,,congress  #b;d ,session  
,s4 #bbcg  ,,in ,,the ,,senate ,,of     
,,the ,,united ,,states  ,april #aj1    
#bjad ,mr4 ,hoeven 7for himself and ,ms4
 ,cantwell7 introduced the following    
bill2 which was read twice and referred 
to the ,committee on ,finance  ,a ,,bill
  ,to amend the ,internal ,revenue ,code
 of #aihf to provide an elective safe   
harbor for the expensing by small       
businesses of the costs of acquiring or 
producing tangible property4  #a4 ,short
 title ,this ,act may be cited as the   
,farm and ,small ,business ,expensing   
,tax ,relief ,act4  #b4 ,safe harbor for
 expensing by small businesses of       
acquisition or production costs of      
tangible property  7a7 ,in general      
,section #bfc of the ,internal ,revenue 
,code of #aihf is amended by adding at  
the end the following3  7j7 ,election   
for small businesses ,to expense certain
 acquisition and production costs  7#a7 
,in general ,if the amount paid or      
incurred by an eligible taxpayer to     

acquire or produce any item of tangible 
property does not exceed #e1jjj 7or such
 higher amount as the ,secretary may    
prescribe by regulations71 then1        
notwithstanding subsection 7a71 the     
taxpayer may elect to treat such amount 
as an expense which is not chargeable to
 capital account nor treated as a       
material or supply4 ,any amount so      
treated shall be allowed as a deduction 
for the taxable year in which the       
property is acquired or produced4  7#b7 
,eligible taxpayer ,for purposes of this
 subsection-- 7,a7 ,in general ,the term
 eligible taxpayer means1 with respect  
to any taxable year1 a taxpayer-- 7i7   
who meets the gross receipts test of    
subparagraph 7,b7 for the taxable year1 
and  7ii7 who1 as of the beginning of   
the taxable year1 has in effect written 
accounting procedures meeting such      
requirements as the ,secretary may      
prescribe with respect to the expensing 
of amounts described in paragraph 7#a74 
7,b7 ,gross receipts test ,a taxpayer   

meets the gross receipts test of this   
subparagraph for any taxable year if the
 average annual gross receipts of such  
taxpayer for the #c-taxable-year period 
ending with the taxable year which      
precedes such taxable year does not     
exceed #aj1jjj1jjj4  7,c7 ,rules        
relating to gross receipts test ,for    
purposes of subparagraph 7,b7-- 7i7 the 
rules of paragraphs 7#b7 and 7#c7 of    
section #ddh7;c7 shall apply1 and  7ii7 
in the case of a partnership1 ,s        
corporation1 trust1 estate1 or other    
pass-thru entity1 the gross receipts    
test shall apply at the entity level4   
7#c7 ,election ,any election under this 
subsection for any taxable year shall-- 
7,a7 specify the items of tangible      
property to which the election applies1 
and  7,b7 be made1 in such manner as the
 ,secretary may prescribe1 on the       
taxpayer's return of the tax imposed by 
this chapter for the taxable year4  ,any
 election made under this subsection1   
and any specification made in any such  

election1 may not be revoked except with
 the consent of the ,secretary4  7#d7   
,coordination with section #agi ,this   
subsection shall be applied before      
section #agi4  7#e7 ,regulations ,the   
,secretary shall prescribe such         
regulations as are necessary to carry   
out the purposes of this subsection1    
including regulations providing for--   
7,a7 exceptions for property which is   
inventory or land or for which the      
taxpayer makes an election for optional 
treatment under section #afb2 and  7,b7 
the aggregation of all amounts paid or  
incurred with respect to any item of    
tangible property4  7#f7 ,rule of       
construction ,if1 for any taxable year1 
a taxpayer is not an eligible taxpayer  
7or is an eligible taxpayer who does not
 elect to have this subsection apply71  
nothing in this subsection shall be     
construed as prohibiting the expensing  
of any amount paid or incurred during   
the taxable year to acquire or produce  
any item of tangible property if such   

expensing is permitted under any safe   
harbor or other provision of the        
regulations prescribed under this       
section4  7#g7 ,cross reference ,for    
capitalization of certain expenses where
 a taxpayer produces property or        
acquires property for resale1 see       
section #bfc;,a4  4  7b7 ,effective date
 ,the amendment made by this section    
shall apply to amounts paid or incurred 
in taxable years beginning after        
,december #ca1 #bjac4