,,ii #aac? ,,congress #b;d ,session ,s4 #bfha ,,9 ,,! ,,s5ate ,,( ,,! ,,unit$ ,,/ates ,july #bi1 #bjad ,mr4 ,pryor 7= himself & ,mr4 ,wal%7 introduc$ ! foll[+ bill2 :i* 0 read twice & ref]r$ to ! ,committee on ,f9ance ,a ,,bill ,to am5d ! ,int]nal ,rev5ue ,code ( #aihf to provide inc5tives = bus9esses to keep jobs 9 ! ,unit$ ,/ates4 #a4 ,%ort title ,?is ,act may be cit$ z ! ,keep+ ,jobs 9 ,am]ica ,act4 #b4 ,inb\nd inve/m5t program to recruit jobs to ! ,unit$ ,/ates 7a7 ,def9itions ,9 ?is section3 7#a7 ,di/ress$ ,! t]m di/ress$1 ) respect to an area1 means an area 9 ! ,unit$ ,/ates t1 on ! date on :i* ! program is e/abli%$ "u subsection 7b7-- 7,a7 is includ$ 9 ! mo/ rec5t classification ( labor surplus areas by ! ,secret>y ( ,labor2 & 7,b7 has an unemploym5t rate equal to or great] ?an #aaj p]c5t ( ! unemploym5t rate ( ! ,unit$ ,/ates4 7#b7 ,eligible entity ,! t]m eligible entity means an entity t employs n few] ?an #ej full-"t equival5t employees 9 high-value jobs4 7#c7 ,eligible facility ,! t]m eligible facility means a facility at :i*-- 7,a7 an eligible entity employs n few] ?an #ej full-"t equival5t employees 9 high-value jobs2 7,b7 ) respect to a rural or di/ress$ area1 ! mean ( ! wages provid$ by ! eligible entity to individuals employ$ at su* facility is great] ?an ! mean wage = ! c\nty 9 :i* ! rural or di/ress$ area is locat$2 & 7,c7 d]ives at lea/ ! majority ( its rev5ues f-- 7i7 goods production2 or 7ii7 provid+ product design1 eng9e]+1 m>ket+1 or in=mation te*nology s]vices4 7#d7 ,high-value job def9$ ,! t]m high-value job means a job t-- 7,a7 exi/s )9 an eligible facility2 & 7,b7 has a ,nor? ,am]ican ,indu/rial ,classification t corresponds ) manufactur+1 s(tw>e publi%]s1 comput] sy/ems design1 or relat$ codes1 & is high] ?an ! mean h\rly wage 9 ! c\ntry4 7#e7 ,rural ,! t]m rural1 ) respect to an area1 means any area 9 ! ,unit$ ,/ates :i*1 z confirm$ by ! late/ dec5nial c5sus1 is n locat$ )9-- 7,a7 a city or t[n t has a population ( great] ?an #ej1jjj inhabitants2 or 7,b7 an urbaniz$ area contigu\s & adjac5t to a city or t[n describ$ 9 subp>agraph 7,a74 7b7 ,program requir$ ,n lat] ?an #ahj days aft] ! date ( ! enactm5t ( ?is ,act1 ! ,secret>y ( ,comm]ce %all e/abli% a program to aw>d grants to ,/ates t are recruit+ high-value jobs4 ,grants aw>d$ "u ?is section may be us$ to issue =givable loans to eligible entities t are decid+ :e!r to locate eligible facilities 9 ! ,unit$ ,/ates to assi/ su* entities 9 locat+ su* facilities 9 rural or di/ress$ areas4 7c7 ,f$]al grants to ,/ates 7#a7 ,9 g5]al ,! ,secret>y %all c>ry out ! program ?r\gh ! aw>d ( grants to ,/ates to provide loans & loan gu>antees describ$ 9 subsection 7d74 7#b7 ,application 7,a7 ,9 g5]al ,a ,/ate seek+ a grant "u ! program %all submit an application to ! ,secret>y 9 su* mann] & conta9+ su* in=mation z ! ,secret>y may require4 ,once ! program is op]ational1 any ,/ate may apply = a grant on an ongo+ basis1 until funds are exhau/$4 ,! ,secret>y may also e/abli% a process = pre-cle>+ applications f ,/ates4 ,! ,secret>y %all notify all ,/ates ( ?is grant opportunity once ! program is op]ational4 ,all in=mation ab\t ! program & ! ,/ate application process mu/ be onl9e & mu/ be 9 a =mat t is easily und]/ood & is widely accessible4 7,b7 ,elem5ts ,ea* application submitt$ by a ,/ate "u subp>agraph 7,a7 %all include-- 7i7 a description ( ! eligible entity ! ,/ate proposes to assi/ 9 locat+ an eligible facility 9 a rural or di/ress$ area ( ! ,/ate2 7ii7 a description ( su* facility1 includ+ ! numb] ( high-value jobs relat+ to su* facility2 7iii7 a description ( su* rural or di/ress$ area2 7iv7 a description ( ! res\rces ( ! ,/ate t ! ,/ate has committ$ to assi/+ su* corporation 9 locat+ su* facility1 includ+ tax inc5tives provid$1 bond+ au?ority ex]cis$1 & l& grant$2 & 7v7 su* o!r elem5ts z ! ,secret>y consid]s appropriate4 7,c7 ,notice ,z soon z practicable aft] e/abli%+ ! program "u subsection 7b71 ! ,secret>y %all notify all ,/ates ( ! grants available "u ! program & ! process = apply+ = su* grants4 7,d7 ,onl9e submission ( applications ,! ,secret>y %all e/abli% a me*anism = ! electronic submission ( applications "u subp>agraph 7,a74 ,su* me*anism %all utilize an ,int]net website & all in=mation on su* website %all be 9 a =mat t is easily und]/ood & widely accessible4 7,e7 ,confid5tiality ,! ,secret>y may n make public any in=mation submitt$ by a ,/ate to ! ,secret>y "u ?is p>agraph reg>d+ ! ef=ts ( su* ,/ate to assi/ an eligible entity 9 locat+ an eligible facility 9 su* ,/ate )\t ! express cons5t ( ! ,/ate4 7#c7 ,selection ,! ,secret>y %all aw>d grants "u ! program on a competitive basis to ,/ates t-- 7,a7 ! ,secret>y det]m9es are mo/ likely to succe$ ) a grant "u ! program 9 assi/+ an eligible entity 9 locat+ an eligible facility 9 a rural or di/ress$ area2 7,b7 if successful 9 assi/+ an eligible entity z describ$ 9 subp>agraph 7,a71 w create ! greate/ numb] ( high-value jobs 9 rural or di/ress$ areas2 7,c7 h committ$ significant res\rces1 to ! ext5t ( _! ability z det]m9$ by ! ,secret>y1 to assi/+ eligible entities 9 locat+ eligible facilities 9 a rural or di/ress$ areas2 or 7,d7 meet su* o!r crit]ia z ! ,secret>y consid]s appropriate1 includ+ crit]ia relat+ to m>ket+ plans1 b5efits to ongo+ regional or ,/ate /rategies = economic developm5t1 & job gr[?4 7#d7 ,limitation on competition betwe5 /ates ,! ,secret>y may n aw>d a grant to a ,/ate "u ! program to assi/ an eligible entity-- 7,a7 9 locat+ an eligible facility 9 su* ,/ate if ano!r ,/ate is already seek+ to assi/ su* eligible entity 9 locat+ su* eligible facility 9 su* o!r ,/ate2 or 7,b7 f relocat+ an eligible facility f "o ,/ate to ano!r ,/ate4 7#e7 ,availability ( grant am\nts ,= ea* grant aw>d$ to a ,/ate "u ! program1 ! ,secret>y %all make available to su* ,/ate ! am\nt ( su* grant n lat] ?an #cj days aft] ! date on :i* ! ,secret>y aw>d$ ! grant4 ,! total am\nt ( grants aw>d$ "u ?is program may n exce$ #ajj1jjj1jjj4 7d7 ,loans & loan gu>antees f ,/ates to corporations 7#a7 ,9 g5]al ,am\nts receiv$ by a ,/ate "u ! program %all be us$ to provide assi/ance to an eligible entity to locate an eligible facility 9 a rural or di/ress$ area ( ! ,/ate4 7#b7 ,loans & loan gu>antees ,a ,/ate receiv+ a grant "u ! program may provide assi/ance "u p>agraph 7#a7 9 ! =m (-- 7,a7 a s+le loan to a s+le eligible entity z describ$ 9 p>agraph 7#a7 to cov] ! co/s incurr$ by ! eligible entity 9 locat+ ! eligible facility z describ$ 9 su* p>agraph2 or 7,b7 a s+le loan gu>antee to a f9ancial in/itution mak+ a s+le loan to a s+le eligible entity z describ$ 9 p>agraph 7#a7 to cov] ! co/s incurr$ by ! eligible entity 9 locat+ ! eligible facility z describ$ 9 su* p>agraph4 7#c7 ,t]ms & conditions ,ea* loan or loan gu>antee provid$ "u p>agraph 7#b7 %all h a t]m ( #e ye>s & %all be> int]e/ at rates equal to ! ,f$]al long-t]m rate "u section #abgd7;d77#a77;,c7 ( ! ,int]nal ,rev5ue ,code ( #aihf4 7#d7 ,am\nt ,! am\nt ( a loan or loan gu>antee issu$ to an eligible entity "u ! program = ! location ( an eligible facility %all be an am\nt equal to n m ?an #e1jjj p] full-"t equival5t employee to be employ$ at su* facility4 7#e7 ,repaym5t ,repaym5t ( a loan issu$ by a ,/ate to an eligible entity "u ! program %all be repaid 9 accordance ) su* s*$ule z ! ,/ate %all e/abli% 9 accordance ) su* rules z ! ,secret>y %all prescribe = purposes ( ! program4 ,su* rules %all provide = ! foll[+3 7,a7 ,=giv5ess ( all or a portion ( ! loan1 ! am\nt ( su* =giv5ess dep5d+ ^u ! foll[+3 7i7 ,! p]=mance ( ! borr[]4 7ii7 ,! numb] or quality ( ! jobs at ! facility locat$ "u ! program4 7,b7 ,repaym5t ( pr9cipal or int]e/1 if any1 at ! end ( ! t]m ( ! loan4 7e7 ,assessm5t & recomm5dations 7#a7 ,ongo+ assessm5t ,! ,secret>y %all conduct an ongo+ assessm5t ( ! program4 7#b7 ,recomm5dations ,! ,secret>y may submit to ,congress recomm5dations = su* legislative action z ! ,secret>y consid]s appropriate to improve ! program1 includ+ ) respect to any f9d+s ( ! ,secret>y d]iv$ by comp>+ ! program e/abli%$ "u subsection 7b7 ) ! programs & policies ( gov]nm5ts ( o!r c\ntries us$ to recruit high-value jobs4 #c4 ,cr$it = ins\rc+ exp5ses 7a7 ,9 g5]al ,subp>t ,d ( "p ,,iv ( sub*apt] ,a ( *apt] #a ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$ by add+ at ! end ! foll[+ new section3 #de,s4 ,cr$it = ins\rc+ exp5ses 7a7 ,9 g5]al ,= purposes ( section #ch1 ! ins\rc+ exp5ses cr$it = any taxable ye> is an am\nt equal to #bj p]c5t ( ! eligible ins\rc+ exp5ses ( ! taxpay] :i* are tak5 into acc\nt 9 su* taxable ye> "u subsection 7d74 7b7 ,eligible ins\rc+ exp5ses ,= purposes ( ?is section-- 7#a7 ,9 g5]al ,! t]m eligible ins\rc+ exp5ses means-- 7,a7 eligible exp5ses paid or incurr$ by ! taxpay] 9 connection ) ! elim9ation ( any bus9ess unit ( ! taxpay] 7or ( any memb] ( any exp&$ affiliat$ gr\p 9 :i* ! taxpay] is also a memb]7 locat$ outside ! ,unit$ ,/ates1 & 7,b7 eligible exp5ses paid or incurr$ by ! taxpay] 9 connection ) ! e/abli%m5t ( any bus9ess unit ( ! taxpay] 7or ( any memb] ( any exp&$ affiliat$ gr\p 9 :i* ! taxpay] is also a memb]7 locat$ )9 ! ,unit$ ,/ates1 if su* e/abli%m5t con/itutes ! relocation ( ! bus9ess unit s elim9at$4 ,= purposes ( ! prec$+ s5t5ce1 a relocation %all n be treat$ z fail+ to occur m]ely because su* elim9ation occurs 9 a diff]5t taxable ye> ?an su* e/abli%m5t4 7#b7 ,eligible exp5ses ,! t]m eligible exp5ses means-- 7,a7 any am\nt = :i* a d$uction is all[$ to ! taxpay] "u section #afb1 & 7,b7 p]mit & lic5se fees1 lease brok]age fees1 equipm5t in/allation co/s1 &1 to ! ext5t provid$ by ! ,secret>y1 o!r simil> exp5ses4 ,su* t]m does n include any comp5sation :i* is paid or incurr$ 9 connection ) sev]ance f employm5t &1 to ! ext5t provid$ by ! ,secret>y1 any simil> am\nt4 7#c7 ,bus9ess unit ,! t]m bus9ess unit means-- 7,a7 any trade or bus9ess1 & 7,b7 any l9e ( bus9ess1 or functional unit1 :i* is "p ( any trade or bus9ess4 7#d7 ,exp&$ affiliat$ gr\p ,! t]m exp&$ affiliat$ gr\p means an affiliat$ gr\p z def9$ 9 section #aejd7;a71 det]m9$ )\t reg>d to section #aejd7;b77#c7 & by sub/itut+ m ?an #ej p]c5t = at lea/ #hj p]c5t ea* place x appe>s 9 section #aejd7;a74 ,a p>tn]%ip or any o!r entity 7o!r ?an a corporation7 %all be treat$ z a memb] ( an exp&$ affiliat$ gr\p if su* entity is controll$ 7)9 ! mean+ ( section #ied7;d77#c77 by memb]s ( su* gr\p 7includ+ any entity treat$ z a memb] ( su* gr\p by reason ( ?is p>agraph74 7#e7 ,exp5ses mu/ be pursuant to ins\rc+ plan ,am\nts %all be tak5 into acc\nt "u p>agraph 7#a7 only to ! ext5t t su* am\nts are paid or incurr$ pursuant to a writt5 plan to c>ry out ! relocation describ$ 9 p>agraph 7#a74 7#f7 ,op]at+ exp5ses n tak5 into acc\nt ,any am\nt paid or incurr$ 9 connection ) ! on-go+ op]ation ( a bus9ess unit %all n be treat$ z an am\nt paid or incurr$ 9 connection ) ! e/abli%m5t or elim9ation ( su* bus9ess unit4 7c7 ,increas$ dome/ic employm5t requirem5t ,no cr$it %all be all[$ "u ?is section unless ! numb] ( full-"t equival5t employees ( ! taxpay] = ! taxable ye> = :i* ! cr$it is claim$ exce$s ! numb] ( full-"t equival5t employees ( ! taxpay] = ! la/ taxable ye> end+ be=e ! fir/ taxable ye> 9 :i* su* eligible ins\rc+ exp5ses 7 paid or incurr$4 ,= purposes ( ?is subsection1 full-"t equival5t employees has ! mean+ giv5 su* t]m "u section #de,r7d7 7& ! applicable rules ( section #de,r7e774 ,all employ]s treat$ z a s+le employ] "u subsection 7b71 7c71 7m71 or 7o7 ( section #dad %all be treat$ z a s+le employ] = purposes ( ?is subsection4 7d7 ,cr$it all[$ ^u completion ( ins\rc+ plan 7#a7 ,9 g5]al ,except z provid$ 9 p>agraph 7#b71 eligible ins\rc+ exp5ses %all be tak5 into acc\nt "u subsection 7a7 9 ! taxable ye> dur+ :i* ! plan describ$ 9 subsection 7b77#e7 has be5 complet$ & all eligible ins\rc+ exp5ses pursuant to su* plan h be5 paid or incurr$4 7#b7 ,election to apply employm5t te/ & claim cr$it 9 fir/ full taxable ye> aft] completion ( plan ,if ! taxpay] elects ! application ( ?is p>agraph1 eligible ins\rc+ exp5ses %all be tak5 into acc\nt "u subsection 7a7 9 ! fir/ taxable ye> aft] ! taxable ye> describ$ 9 p>agraph 7#a74 7e7 ,possessions treat$ z "p ( ! ,unit$ ,/ates ,= purposes ( ?is section1 ! t]m ,unit$ ,/ates %all be treat$ z includ+ ea* possession ( ! ,unit$ ,/ates 7includ+ ! ,commonweal? ( ,pu]to ,rico & ! ,commonweal? ( ! ,nor!rn ,m>iana ,isl&s74 7f7 ,regulations ,! ,secret>y %all prescribe su* regulations or o!r guidance z may be necess>y or appropriate to c>ry out ! purposes ( ?is section4 4 7b7 ,cr$it ,to be "p ( g5]al bus9ess cr$it ,subsection 7b7 ( section #ch ( su* ,code is am5d$ by /rik+ plus at ! end ( p>agraph 7#ce71 by /rik+ ! p]iod at ! end ( p>agraph 7#cf7 & ins]t+ 1 plus1 & by add+ at ! end ! foll[+ new p>agraph3 7#cg7 ! ins\rc+ exp5ses cr$it det]m9$ "u section #de,s7a74 4 7c7 ,cl]ical am5dm5t ,! table ( sections = subp>t ,d ( "p ,,iv ( sub*apt] ,a ( *apt] #a ( su* ,code is am5d$ by add+ at ! end ! foll[+ new item3 ,sec4 #de,s4 ,cr$it = ins\rc+ exp5ses4 4 7d7 ,effective date ,! am5dm5ts made by ?is section %all apply to am\nts paid or incurr$ aft] ! date ( ! enactm5t ( ?is ,act4 7e7 ,application to ,unit$ ,/ates possessions 7#a7 ,paym5ts to possessions 7,a7 ,mirror code possessions ,! ,secret>y ( ! ,treasury %all make p]iodic paym5ts to ea* possession ( ! ,unit$ ,/ates ) a mirror code tax sy/em 9 an am\nt equal to ! loss to t possession by reason ( section #de,s ( ! ,int]nal ,rev5ue ,code ( #aihf4 ,su* am\nt %all be det]m9$ by ! ,secret>y ( ! ,treasury bas$ on in=mation provid$ by ! gov]nm5t ( ! respective possession4 7,b7 ,o!r possessions ,! ,secret>y ( ! ,treasury %all make annual paym5ts to ea* possession ( ! ,unit$ ,/ates :i* does n h a mirror code tax sy/em 9 an am\nt e/imat$ by ! ,secret>y ( ! ,treasury z be+ equal to ! aggregate b5efits t w\ld h be5 provid$ to resid5ts ( su* possession by reason ( section #de,s ( su* ,code if a mirror code tax sy/em _h be5 9 effect 9 su* possession4 ,! prec$+ s5t5ce %all n apply ) respect to any possession ( ! ,unit$ ,/ates unless su* possession has a plan1 :i* has be5 approv$ by ! ,secret>y ( ! ,treasury1 "u :i* su* possession w promptly di/ribute su* paym5t to ! resid5ts ( su* possession4 7#b7 ,coord9ation ) cr$it all[$ aga9/ unit$ /ates income taxes ,no cr$it %all be all[$ aga9/ ,unit$ ,/ates income taxes "u section #de,s ( su* ,code to any p]son-- 7,a7 to :om a cr$it is all[$ aga9/ taxes impos$ by ! possession by reason ( su* section1 or 7,b7 :o is eligible = a paym5t "u a plan describ$ 9 p>agraph 7#a77;,b74 7#c7 ,def9itions & special rules 7,a7 ,possessions ( ! ,unit$ ,/ates ,= purposes ( ?is section1 ! t]m possession ( ! ,unit$ ,/ates includes ! ,commonweal? ( ,pu]to ,rico & ! ,commonweal? ( ! ,nor!rn ,m>iana ,isl&s4 7,b7 ,mirror code tax sy/em ,= purposes ( ?is section1 ! t]m mirror code tax sy/em means1 ) respect to any possession ( ! ,unit$ ,/ates1 ! income tax sy/em ( su* possession if ! income tax liability ( ! resid5ts ( su* possession "u su* sy/em is det]m9$ by ref]5ce to ! income tax laws ( ! ,unit$ ,/ates z if su* possession 7 ! ,unit$ ,/ates4 7,c7 ,treatm5t ( paym5ts ,= purposes ( section #acbd7;b77#b7 ( title #ca1 ,unit$ ,/ates ,code1 ! paym5ts "u ?is section %all be treat$ 9 ! same mann] z a refund due f sections ref]r$ to 9 su* section #acbd7;b77#b74 #d4 ,d5ial ( d$uction = outs\rc+ exp5ses 7a7 ,9 g5]al ,"p ,,ix ( sub*apt] ,b ( *apt] #a ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$ by add+ at ! end ! foll[+ new section3 #bhj;,i4 ,outs\rc+ exp5ses 7a7 ,9 g5]al ,no d$uction o!rwise all[able "u ?is *apt] %all be all[$ = any specifi$ outs\rc+ exp5se4 7b7 ,specifi$ outs\rc+ exp5se ,= purposes ( ?is section-- 7#a7 ,9 g5]al ,! t]m specifi$ outs\rc+ exp5se means-- 7,a7 any eligible exp5se paid or incurr$ by ! taxpay] 9 connection ) ! elim9ation ( any bus9ess unit ( ! taxpay] 7or ( any memb] ( any exp&$ affiliat$ gr\p 9 :i* ! taxpay] is also a memb]7 locat$ )9 ! ,unit$ ,/ates1 & 7,b7 any eligible exp5se paid or incurr$ by ! taxpay] 9 connection ) ! e/abli%m5t ( any bus9ess unit ( ! taxpay] 7or ( any memb] ( any exp&$ affiliat$ gr\p 9 :i* ! taxpay] is also a memb]7 locat$ outside ! ,unit$ ,/ates1 if su* e/abli%m5t con/itutes ! relocation ( ! bus9ess unit s elim9at$4 ,= purposes ( ! prec$+ s5t5ce1 a relocation %all n be treat$ z fail+ to occur m]ely because su* elim9ation occurs 9 a diff]5t taxable ye> ?an su* e/abli%m5t4 7#b7 ,application ( c]ta9 def9itions & rules 7,a7 ,def9itions ,= purposes ( ?is section1 ! t]ms eligible exp5ses1 bus9ess unit1 & exp&$ affiliat$ gr\p %all h ! respective mean+s giv5 su* t]ms by section #de,s7b74 7,b7 ,op]at+ exp5ses n tak5 into acc\nt ,a rule simil> to ! rule ( section #de,s7b77#f7 %all apply = purposes ( ?is section4 7c7 ,special rules 7#a7 ,application to d$uctions = depreciation & amortization ,9 ! case ( any portion ( a specifi$ outs\rc+ exp5se :i* is n d$uctible 9 ! taxable ye> 9 :i* paid or incurr$1 su* portion %all nei!r be *>geable to capital acc\nt nor amortizable4 7#b7 ,possessions treat$ z "p ( ! ,unit$ ,/ates ,= purposes ( ?is section1 ! t]m ,unit$ ,/ates %all be treat$ z includ+ ea* possession ( ! ,unit$ ,/ates 7includ+ ! ,commonweal? ( ,pu]to ,rico & ! ,commonweal? ( ! ,nor!rn ,m>iana ,isl&s74 7d7 ,regulations ,! ,secret>y %all prescribe su* regulations or o!r guidance z may be necess>y or appropriate to c>ry out ! purposes ( ?is section1 includ+ regulations :i* provide 7or create a rebuttable presumption7 t c]ta9 e/abli%m5ts ( bus9ess units outside ! ,unit$ ,/ates w be treat$ z relocations 7bas$ on tim+ or su* o!r factors z ! ,secret>y may provide7 ( bus9ess units elim9at$ )9 ! ,unit$ ,/ates4 4 7b7 ,limitation on subp>t ,f income ( controll$ =eign corporations det]m9$ )\t reg>d to specifi$ outs\rc+ exp5ses ,subsection 7c7 ( section #ieb ( su* ,code is am5d$ by add+ at ! end ! foll[+ new p>agraph3 7#d7 ,e>n+s & pr(its det]m9$ )\t reg>d to specifi$ outs\rc+ exp5ses ,= purposes ( ?is subsection1 e>n+s & pr(its ( any controll$ =eign corporation %all be det]m9$ )\t reg>d to any specifi$ outs\rc+ exp5se 7z def9$ 9 section #bhj;,i7b774 4 7c7 ,cl]ical am5dm5t ,! table ( sections = "p ,,ix ( sub*apt] ,b ( *apt] #a ( su* ,code is am5d$ by add+ at ! end ! foll[+ new item3 ,sec4 #bhj;,i4 ,outs\rc+ exp5ses4 4 7d7 ,effective date ,! am5dm5ts made by ?is section %all apply to am\nts paid or incurr$ aft] ! date ( ! enactm5t ( ?is ,act4 #e4 ,ext5sion ( bonus depreciation 7a7 ,9 g5]al ,p>agraph 7#b7 ( section #afh7k7 ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$-- 7#a7 by /rik+ ,janu>y #a1 #bjae 9 subp>agraph 7,a77iv7 & ins]t+ ,janu>y #a1 #bjai1 & 7#b7 by /rik+ ,janu>y #a1 #bjad ea* place x appe>s & ins]t+ ,janu>y #a1 #bjah4 7b7 ,special rule = ,f$]al long-,t]m contracts ,clause 7ii7 ( section #dfj7;c77#f77;,b7 ( su* ,code is am5d$ by /rik+ ,janu>y #a1 #bjad 7,janu>y #a1 #bjae & ins]t+ ,janu>y #a1 #bjah 7,janu>y #a1 #bjai4 7c7 ,ext5sion ( election ,to accel]ate ! ,,amt cr$it 9 lieu ( bonus depreciation 7#a7 ,9 g5]al ,subclause 7,,ii7 ( section #afh7k77#d77;,d77iii7 ( su* ,code is am5d$ by /rik+ #bjad & ins]t+ #bjah4 7#b7 ,r\nd #d ext5sion prop]ty ,p>agraph 7#d7 ( section #afh7k7 ( su* ,code is am5d$ by add+ at ! end ! foll[+ new subp>agraph3 7,k7 ,special rules = r\nd #d ext5sion prop]ty 7i7 ,9 g5]al ,9 ! case ( r\nd #d ext5sion prop]ty1 9 apply+ ?is p>agraph to any taxpay]-- 7,i7 ! limitation describ$ 9 subp>agraph 7,b77i7 & ! bus9ess cr$it increase am\nt "u subp>agraph 7,e77iii7 !re( %all n apply1 & 7,,ii7 ! bonus depreciation am\nt1 maximum am\nt1 & maximum increase am\nt %all be comput$ sep>ately f am\nts comput$ ) respect to eligible qualifi$ prop]ty :i* is n r\nd #d ext5sion prop]ty4 7ii7 ,election 7,i7 ,a taxpay] :o has an election 9 effect "u ?is p>agraph = r\nd #c ext5sion prop]ty %all be treat$ z hav+ an election 9 effect = r\nd #d ext5sion prop]ty unless ! taxpay] elects to n h ?is p>agraph apply to r\nd #d ext5sion prop]ty4 7,,ii7 ,a taxpay] :o does n h an election 9 effect "u ?is p>agraph = r\nd #c ext5sion prop]ty may elect to h ?is p>agraph apply to r\nd #d ext5sion prop]ty4 7iii7 ,r\nd #d ext5sion prop]ty ,= purposes ( ?is subp>agraph1 ! t]m r\nd #d ext5sion prop]ty means prop]ty :i* is eligible qualifi$ prop]ty solely by reason ( ! ext5sion ( ! application ( ! special all[ance "u p>agraph 7#a7 pursuant to ! am5dm5ts made by section #e7;a7 ( ! ,keep+ ,jobs 9 ,am]ica ,act 7& ! application ( su* ext5sion to ?is p>agraph pursuant to ! am5dm5t made by section #e7;c7 ( su* ,act74 4 7d7 ,con=m+ am5dm5ts 7#a7 ,! head+ = subsection 7k7 ( section #afh ( su* ,code is am5d$ by /rik+ ,janu>y #a1 #bjad & ins]t+ ,janu>y #a1 #bjah4 7#b7 ,! head+ = clause 7ii7 ( section #afh7k77#b77;,b7 ( su* ,code is am5d$ by /rik+ pre-,janu>y #a1 #bjad & ins]t+ pre-,janu>y #a1 #bjah4 7#c7 ,subp>agraph 7,c7 ( section #afh7n77#b7 ( su* ,code is am5d$ by /rik+ ,janu>y #a1 #bjad & ins]t+ ,janu>y #a1 #bjah4 7#d7 ,subp>agraph 7,d7 ( section #adjj,l7b77#b7 ( su* ,code is am5d$ by /rik+ ,janu>y #a1 #bjad & ins]t+ ,janu>y #a1 #bjah4 7#e7 ,subp>agraph 7,b7 ( section #adjj,n7d77#c7 ( su* ,code is am5d$ by /rik+ ,janu>y #a1 #bjad & ins]t+ ,janu>y #a1 #bjah4 7e7 ,te*nical am5dm5t relat+ to section #cca ( ! ,am]ican ,taxpay] ,relief ,act ( #bjab 7#a7 ,9 g5]al ,clause 7iii7 ( section #afh7k77#d77;,j7 ( su* ,code is am5d$ by /rik+ any taxable ye> & ins]t+ its fir/ taxable ye>4 7#b7 ,effective date ,! am5dm5t made by ?is subsection %all take effect z if includ$ 9 ! provision ( ! ,am]ican ,taxpay] ,relief ,act ( #bjab to :i* x relates4 7f7 ,effective date ,! am5dm5ts made by ?is section %all apply to prop]ty plac$ 9 s]vice aft] ,decemb] #ca1 #bjac1 9 taxable ye>s end+ aft] su* date4 #f4 ,increas$ exp5s+ limitations & treatm5t ( c]ta9 real prop]ty z section #agi prop]ty 7a7 ,9 g5]al 7#a7 ,doll> limitation ,p>agraph 7#a7 ( section #agi7;b7 ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$ by /rik+ %all n exce$-- & all t foll[s & ins]t+ %all n exce$ #ejj1jjj44 7#b7 ,r$uction 9 limitation ,p>agraph 7#b7 ( section #agi7;b7 ( su* ,code is am5d$ by /rik+ exce$s-- & all t foll[s & ins]t+ exce$s #b1jjj1jjj44 7b7 ,comput] s(tw>e ,clause 7ii7 ( section #agi7;d77#a77;,a7 ( su* ,code is am5d$ by /rik+ 1 to :i* section #afg applies1 & :i* is plac$ 9 s]vice 9 a taxable ye> beg9n+ aft] #bjjb & be=e #bjad & ins]t+ & to :i* section #afg applies4 7c7 ,election ,p>agraph 7#b7 ( section #agi7;c7 ( su* ,code is am5d$-- 7#a7 by /rik+ may n be revok$ & all t foll[s ?r\gh & be=e #bjad1 & 7#b7 by /rik+ irrevocable 9 ! head+ !re(4 7d7 ,air condition+ & heat+ units ,p>agraph 7#a7 ( section #agi7;d7 ( su* ,code is am5d$ by /rik+ & %all n include air condition+ or heat+ units4 7e7 ,qualifi$ real prop]ty ,subsection 7f7 ( section #agi ( su* ,code is am5d$-- 7#a7 by /rik+ beg9n+ 9 #bjaj1 #bjaa1 #bjab1 or #bjac 9 p>agraph 7#a71 & 7#b7 by /rik+ p>agraphs 7#c7 & 7#d74 7f7 ,inflation adju/m5t ,subsection 7b7 ( section #agi ( su* ,code is am5d$ by add+ at ! end ! foll[+ new p>agraph3 7#f7 ,inflation adju/m5t 7,a7 ,9 g5]al ,9 ! case ( any taxable ye> beg9n+ aft] #bjad1 ! doll> am\nts 9 p>agraphs 7#a7 & 7#b7 %all ea* be increas$ by an am\nt equal to-- 7i7 su* doll> am\nt1 multipli$ by 7ii7 ! co/-(-liv+ adju/m5t det]m9$ "u section #a7;c77#b77;,a7 = su* cal5d> ye>1 det]m9$ by sub/itut+ cal5d> ye> #bjac = cal5d> ye> #bjab 9 clause 7ii7 !re(4 7,b7 ,r\nd+ ,! am\nt ( any increase "u subp>agraph 7,a7 %all be r\nd$ to ! ne>e/ multiple ( #aj1jjj4 4 7g7 ,effective date ,! am5dm5ts made by ?is section %all apply to taxable ye>s beg9n+ aft] ,decemb] #ca1 #bjac4 #g4 ,p]man5t ext5sion ( new m>kets tax cr$it 7a7 ,ext5sion 7#a7 ,9 g5]al ,subp>agraph 7,g7 ( section #de;,d7f77#a7 ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$ by /rik+ 1 #bjaa1 #bjab1 & #bjac & ins]t+ & ea* cal5d> ye> !reaft]4 7#b7 ,con=m+ am5dm5t ,section #de;,d7f77#c7 ( su* ,code is am5d$ by /rik+ ! la/ s5t5ce4 7b7 ,inflation adju/m5t ,subsection 7f7 ( section #de;,d ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$ by add+ at ! end ! foll[+ new p>agraph3 7#d7 ,inflation adju/m5t 7,a7 ,9 g5]al ,9 ! case ( any cal5d> ye> beg9n+ aft] #bjac1 ! doll> am\nt 9 p>agraph 7#a77;,g7 %all be increas$ by an am\nt equal to-- 7i7 su* doll> am\nt1 multipli$ by 7ii7 ! co/-(-liv+ adju/m5t det]m9$ "u section #a7;f77#c7 = ! cal5d> ye>1 det]m9$ by sub/itut+ cal5d> ye> #bjjj = cal5d> ye> #aiib 9 subp>agraph 7,b7 !re(4 7,b7 ,r\nd+ rule ,any increase "u subp>agraph 7,a7 :i* is n a multiple ( #a1jjj1jjj %all be r\nd$ to ! ne>e/ multiple ( #a1jjj1jjj4 4 7c7 ,alt]native m9imum tax relief ,subp>agraph 7,b7 ( section #ch7;c77#d7 ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$-- 7#a7 by r$esignat+ clauses 7v7 ?r\gh 7ix7 z clauses 7vi7 ?r\gh 7x71 respectively1 & 7#b7 by ins]t+ aft] clause 7iv7 ! foll[+ new clause3 7v7 ! cr$it det]m9$ "u section #de;,d1 b only ) respect to cr$its det]m9$ ) respect to qualifi$ equity inve/m5ts 7z def9$ 9 section #de;,d7b77 initially made be=e ,janu>y #a1 #bjad1 4 7d7 ,effective dates 7#a7 ,9 g5]al ,except z provid$ 9 p>agraph 7#b71 ! am5dm5ts made by ?is section %all take effect on ! date ( ! enactm5t ( ?is ,act4 7#b7 ,alt]native m9imum tax relief ,! am5dm5ts made by subsection 7c7 %all apply to cr$its det]m9$ ) respect to qualifi$ equity inve/m5ts 7z def9$ 9 section #de;,d7b7 ( ! ,int]nal ,rev5ue ,code ( #aihf7 initially made aft] ! date ( ! enactm5t ( ?is ,act4