,,ii  #aaeth ,,congress  #ast ,session  
,s4 #aadd  ,,in ,,the ,,senate ,,of     
,,the ,,united ,,states  ,may #ag1 #bjag
 ,mr4 ,thune 7for himself and ,mr4      
,roberts7 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 encourage business creation 
by allowing faster recovery of start-up 
and organizational expenses1 to simplify
 accounting methods for small           
businesses1 to expand expensing and     
provide accelerated cost recovery to    
encourage investment in new plants and  
equipment1 and for other purposes4  #a4 
,short title2 amendment of #aihf ,code2 
table of contents  7a7 ,short title     
,this ,act may be cited as the          
,investment in ,new ,ventures and       
,economic ,success ,today ,act of #bjag 
or the ,,invest ,act of #bjag4  7b7     
,amendment of #aihf ,code ,except as    
otherwise expressly provided1 whenever  
in this ,act an amendment or repeal is  

expressed in terms of an amendment to1  
or repeal of1 a section or other        
provision1 the reference shall be       
considered to be made to a section or   
other provision of the ,internal        
,revenue ,code of #aihf4  7c7 ,table of 
contents  ,sec4 #a4 ,short title2       
amendment of #aihf ,code2 table of      
contents4 ,,title ,i--,start-up and     
organizational business expenses ,sec4  
#aja4 ,unification and expansion of     
deduction for start-up and              
organizational expenditures4 ,,title    
,,ii--,accounting methods ,sec4 #bja4   
,modifications of gross receipts test   
for use of cash method of accounting by 
corporations and partnerships4 ,sec4    
#bjb4 ,clarification of inventory       
accounting rules for small businesses4  
,sec4 #bjc4 ,modification of rules for  
capitalization and inclusion in         
inventory costs of certain expenses4    
,sec4 #bjd4 ,increase in gross receipts 
test for construction contract exception
 to percentage of completion method4    

,,title ,,iii--,modifications of        
expensing and cost recovery rules       
,subtitle ,a--,expensing rules ,sec4    
#cja4 ,modifications of rules for       
expensing depreciable business assets4  
,subtitle ,b--,cost recovery rules ,sec4
 #caa4 #ej-percent expensing made       
permanent4 ,sec4 #cab4 ,modifications of
 treatment of certain farm property4    
,sec4 #cac4 ,secretarial requirement to 
reexamine economic depreciation for     
classes of depreciable property4 ,sec4  
#cad4 ,modifications to depreciation    
limitations on luxury automobiles and   
personal use property4 ,sec4 #cae4      
,reduction in amortization period for   
intangibles4  ,i ,start-up and          
organizational business expenses  #aja4 
,unification and expansion of deduction 
for start-up and organizational         
expenditures  7a7 ,unification  7#a7 ,in
 general ,subsection 7a7 of section #aie
 is amended by inserting and            
organizational after start-up4  7#b7    
,organizational expenditures ,subsection

 7c7 of section #aie is amended by      
adding at the end the following new     
paragraph3  7#c7 ,organizational        
expenditures ,the term organizational   
expenditures means any expenditure      
which--  7,a7 is incident to the        
creation of a corporation or a          
partnership1  7,b7 is chargeable to     
capital account1 and  7,c7 is of a      
character which1 if expended incident to
 the creation of a corporation or a     
partnership having an ascertainable     
life1 would be amortizable over such    
life4  4  7#c7 ,conforming amendment    
,section #aie7;b77#a7 is amended by     
inserting or organizational after       
start-up each place it appears4  7b7    
,dollar amounts and amortization period 
7#a7 ,dollar amounts  7,a7 ,increase    
,clause 7ii7 of section                 
#aie7;b77#a77;,a7 is amended--  7i7 by  
striking #e1jjj and inserting #ej1jjj1  
and  7ii7 by striking #ej1jjj and       
inserting #ajj1jjj4  7,b7 ,adjustment   
for inflation ,paragraph 7#c7 of section

 #aie7;b7 is amended to read as follows3
  7#c7 ,adjustment for inflation ,in the
 case of any taxable year beginning     
after ,december #ca1 #bjah1 the #ej1jjj 
and #ajj1jjj amounts in paragraph       
7#a77;,a77ii7 shall each be increased by
 an amount equal to--  7,a7 such dollar 
amount1 multiplied by  7,b7 the         
cost-of-living adjustment determined    
under section #a7;f77#c7 for the        
calendar year in which the taxable year 
begins1 by substituting calendar year   
#bjag for calendar year #aiib in        
subparagraph 7,b7 thereof4  ,if any     
amount as increased under the preceding 
sentence is not a multiple of #a1jjj1   
such amount shall be rounded to the     
nearest multiple of #a1jjj4  4  7#b7    
,amortization period ,subparagraph 7,b7 
of section #aie7;b77#a7 is amended by   
striking #ahj-month period and inserting
 #abj-month period4  7#c7 ,allocation of
 limit to initial start-up and          
organizational expenditures ,section    
#aie7;b7 is amended--  7,a7 by striking 

,if in paragraph 7#a7 and inserting     
,subject to paragraph 7#d71 if1 and     
7,b7 by adding at the end the following 
new paragraph3  7#d7 ,special rules for 
aggregation of initial expenditures of  
corporations and partnerships ,for      
purposes of paragraph 7#a71 if1 at the  
time a corporation or partnership first 
begins the active conduct of one or more
 trades or businesses1 a taxpayer has   
both start-up expenditures with respect 
to such trades or businesses and        
organizational expenditures with respect
 to such entity--  7,a7 any election    
under paragraph 7#a7 shall cover both   
such start-up and organizational        
expenditures1  7,b7 the amount of the   
deduction under paragraph 7#a77;,a7 with
 respect to all such start-up and       
organizational expenditures shall not   
exceed the limitation under clause 7ii7 
of paragraph 7#a77;,a71 and  7,c7 the   
amount of such start-up and             
organizational expenditures remaining   
after such deduction shall be amortized 

under paragraph 7#a77;,b74  4  7c7      
,conforming amendments  7#a7 7,a7 ,part 
,,viii of subchapter ,b of chapter #a is
 amended by striking section #bdh4  7,b7
 ,section #ef7;g77#d77;,d77ii7 is       
amended by striking ,sections #agc and  
#bdh and inserting ,section #agc4  7,c7 
,section #agj7;b77#b77;,d77ii7 is       
amended by striking 7except section     
#bdh74  7,d7 ,section #cab7n77#c7 is    
amended by striking ,sections #agc and  
#bdh and inserting ,sections #agc and   
#aie4  7,e7 ,section #ece7;b77#c7 is    
amended by striking 7except section     
#bdh74  7,f7 ,section #ede7;b77#c7 is   
amended by striking 7except section     
#bdh74  7,g7 ,section #hcd7;c77#g7 is   
amended by striking 7except section     
#bdh74  7,h7 ,section #heb7;b77#b77;,c7 
is amended by striking 7except section  
#bdh74  7,i7 ,section #heg7;b77#b77;,a7 
is amended by striking 7except section  
#bdh74  7,j7 ,section #acfc7;b77#c7 is  
amended by striking section #bdh and    
inserting section #aie4  7,k7 ,section  

#acge7;b77#a77;,b77i7 is amended by     
striking 7other than the deduction      
allowed by section #bdh1 relating to    
organization expenditures74  7,l7 ,the  
table of sections for part ,,viii of    
subchapter ,b of chapter #a is amended  
by striking the item relating to section
 #bdh4  7#b7 7,a7 ,section #gji is      
amended to read as follows3  #gji4      
,treatment of syndication fees ,no      
deduction shall be allowed under this   
chapter to a partnership or to any      
partner of the partnership for any      
amounts paid or incurred to promote the 
sale of 7or to sell7 an interest in the 
partnership4  4  7,b7 ,the item relating
 to section #gji in the table of        
sections for part ,i of subchapter ,k of
 chapter #a is amended by striking      
organization and4  7d7 ,clerical        
amendments  7#a7 ,the heading of section
 #aie is amended by striking            
expenditures and inserting and          
organizational expenditures4  7#b7 ,the 
item relating to section #aie in the    

table of contents of part ,,vi of       
subchapter ,b of chapter #a is amended  
to read as follows3  ,sec4 #aie4        
,start-up and organizational            
expenditures4  4  7e7 ,effective date   
,the amendments made by this section    
shall apply to elections which first    
take effect for taxable years beginning 
after ,december #ca1 #bjag4  ,,ii       
,accounting methods  #bja4              
,modifications of gross receipts test   
for use of cash method of accounting by 
corporations and partnerships  7a7      
,modifications of gross receipts test   
7#a7 ,in general ,so much of section    
#ddh7;c7 as precedes paragraph 7#b7 is  
amended to read as follows3  7c7 ,gross 
receipts test  7#a7 ,in general ,a      
corporation or partnership meets the    
gross receipts test of this subsection  
for any taxable year if the average     
annual gross receipts of such entity for
 the #c-taxable-year period ending with 
the taxable year which precedes such    
taxable year does not exceed the        

applicable dollar limit4  4  7#b7       
,applicable dollar limit ,subsection 7c7
 of section #ddh is amended by adding at
 the end the following new paragraph3   
7#d7 ,applicable dollar limit  7,a7 ,in 
general ,the applicable dollar limit is 
#ae1jjj1jjj4  7,b7 ,adjustment for      
inflation ,in the case of any taxable   
year beginning after ,december #ca1     
#bjah1 the #ae1jjj1jjj amount under     
subparagraph 7,a7 shall be increased by 
an amount equal to--  7i7 such dollar   
amount1 multiplied by  7ii7 the         
cost-of-living adjustment determined    
under section #a7;f77#c7 for the        
calendar year in which the taxable year 
begins1 by substituting calendar year   
#bjag for calendar year #aiib in        
subparagraph 7,b7 thereof4  ,if any     
amount as increased under the preceding 
sentence is not a multiple of #a1jjj1   
such amount shall be rounded to the     
nearest multiple of #a1jjj4  4  7#c7    
,change in method of accounting         
,paragraph 7#g7 of section #ddh7;d7 is  

amended-- 7,a7 by striking ,in the case 
of and all that follows up to           
subparagraph 7,a7 and inserting3 ,if a  
taxpayer changes its method of          
accounting because the taxpayer is      
prohibited from using the cash receipts 
and disbursement method of accounting by
 reason of subsection 7a7 or is no      
longer prohibited from using such method
 by reason of such subsection--1 and    
7,b7 by inserting and at the end of     
subparagraph 7,a71 by striking 1 andat  
the end of subparagraph 7,b7 and        
inserting a period1 and by striking     
subparagraph 7,c74  7#d7 ,conforming    
amendments  7,a7 ,paragraph 7#c7 of     
section #ddh7;b7 is amended to read as  
follows3  7#c7 ,entities satisfying     
gross receipts test ,paragraphs 7#a7 and
 7#b7 of subsection 7a7 shall not apply 
to any corporation or partnership for   
any taxable year if such entity meets   
the gross receipts test of subsection   
7c7 for the taxable year4  4  7,b7      
,clause 7iii7 of section                

#agb7;b77#a77;,e7 is amended by         
inserting 1 applied by substituting     
#e1jjj1jjj for the applicable dollar    
limit in paragraph 7#a7 thereof1 after  
section #ddh7;c74  7b7 ,application of  
modifications to farming corporations   
7#a7 ,in general ,paragraph 7#a7 of     
section #ddg7;d7 is amended to read as  
follows3  7#a7 ,in general ,a           
corporation meets the requirements of   
this subsection for any taxable year    
with respect to its gross receipts if   
the corporation meets the gross receipts
 test of section #ddh7;c7 for the       
taxable year4  4  7#b7 ,family          
corporations ,paragraph 7#b7 of section 
#ddg7;d7 is amended-- 7,a7 by striking  
subparagraph 7,a7 and inserting the     
following3  7,a7 ,in general ,in the    
case of a family corporation1 in        
applying section #ddh7;c7 for purposes  
of paragraph 7#a7-- 7i7 paragraph 7#a7  
of section #ddh7;c7 shall be applied by 
substituting the applicable family      
corporation limit for the applicable    

dollar limit1 and  7ii7 the rules of    
subparagraph 7,b7 shall apply in        
computing gross receipts4  1  7,b7      
,clause 7i7 of section #ddg7;d77#b77;,b7
 is amended by striking the last        
sentence of paragraph 7#a7 and inserting
 paragraph 7#b7 of section #ddh7;c71 and
  7,c7 by adding at the end the         
following new subparagraph3  7,d7       
,applicable family corporation limit    
7i7 ,in general ,the applicable family  
corporation limit is #be1jjj1jjj4  7ii7 
,adjustment for inflation ,in the case  
of any taxable year beginning after     
,december #ca1 #bjah1 the #be1jjj1jjj   
amount under clause 7i7 shall be        
increased by an amount equal to--  7,i7 
such dollar amount1 multiplied by       
7,,ii7 the cost-of-living adjustment    
determined under section #a7;f77#c7 for 
the calendar year in which the taxable  
year begins1 by substituting calendar   
year #bjag for calendar year #aiib in   
subparagraph 7,b7 thereof4  ,if any     
amount as increased under the preceding 

sentence is not a multiple of #a1jjj1   
such amount shall be rounded to the     
nearest multiple of #a1jjj4  4  7#c7    
,change in method of accounting ,section
 #ddg7;f7 is amended-- 7,a7 by striking 
,in the case of and all that follows up 
to paragraph 7#a7 and inserting3 ,if a  
taxpayer changes its method of          
accounting because the taxpayer is      
required to use an accrual method of    
accounting by reason of subsection 7a7  
or is no longer required to use such    
method by reason of such subsection--1  
and  7,b7 by striking paragraph 7#b7 and
 inserting3  7#b7 such change shall be  
treated as initiated by the taxpayer1   
and  4  7c7 ,effective date ,the        
amendments made by this section shall   
apply to taxable years beginning after  
,december #ca1 #bjag4  #bjb4            
,clarification of inventory accounting  
rules for small businesses  7a7         
,clarification of inventory rules  7#a7 
,in general ,section #dga is amended by 
redesignating subsection 7c7 as         

subsection 7d7 and by inserting after   
subsection 7b7 the following new        
subsection3  7c7 ,small business        
taxpayers not required ,to use          
inventories  7#a7 ,in general ,a        
qualified taxpayer shall not be required
 to use inventories under this section  
for a taxable year4  7#b7 ,treatment of 
taxpayers not using inventories ,a      
qualified taxpayer who is not required  
under this subsection to use inventories
 with respect to any property for a     
taxable year beginning after ,december  
#ca1 #bjag1 may treat such property as  
an incidental material or supply for    
such taxable year4  7#c7 ,qualified     
taxpayer ,for purposes of this          
subsection1 the term qualified taxpayer 
means1 with respect to any taxable year1
 a taxpayer who meets the gross receipts
 test of section #ddh7;c7 for the       
taxable year4 ,such term shall not      
include a tax shelter prohibited from   
using the cash receipts and             
disbursements method of accounting under

 section #ddh7;a77#c74  7#d7            
,coordination with section #dha ,if a   
taxpayer changes its method of          
accounting because the taxpayer is not  
required to use inventories by reason of
 paragraph 7#a7 or is required to use   
inventories because such paragraph no   
longer applies to the taxpayer--  7,a7  
such change shall be treated as         
initiated by the taxpayer1 and  7,b7    
such change shall be treated as made    
with the consent of the ,secretary4  4  
7#b7 ,conforming amendment ,subsection  
7c7 of section #bfc;,a is amended by    
adding at the end the following new     
paragraph3  7#h7 ,exclusion from        
inventory rules ,nothing in this section
 shall require the use of inventories   
for any taxable year by a qualified     
taxpayer 7within the meaning of section 
#dga7;c77#c77 who is not required to use
 inventories under section #dga for such
 taxable year4  4  7b7 ,effective date  
,the amendments made by this section    
shall apply to taxable years beginning  

after ,december #ca1 #bjag4  #bjc4      
,modification of rules for              
capitalization and inclusion in         
inventory costs of certain expenses  7a7
 ,gross receipts exception ,to apply to 
property produced by the taxpayer       
,section #bfc;,a7b7 is amended by       
striking all that follows paragraph 7#a7
 and inserting the following new        
paragraphs3  7#b7 ,property acquired for
 resale ,real or personal property      
described in section #abba7;a77#a7 which
 is acquired by the taxpayer for resale4
  7#c7 ,exception for small businesses  
,this section shall not apply to any    
property produced or acquired by the    
taxpayer during any taxable year if the 
taxpayer is a qualified taxpayer 7as    
defined in section #dga7;c77#c77 for the
 taxable year4  7#d7 ,films1 sound      
recordings1 books1 etc ,for purposes of 
this subsection1 the term tangible      
personal property shall include a film1 
sound recording1 video tape1 book1 or   
similar property4  7#e7 ,coordination   

with section #dha ,if a taxpayer changes
 its method of accounting because this  
section does not apply to the taxpayer  
by reason of the exception under        
paragraph 7#c7 or this section applies  
to the taxpayer because such exception  
no longer applies to the taxpayer--     
7,a7 such change shall be treated as    
initiated by the taxpayer1 and  7,b7    
such change shall be treated as made    
with the consent of the ,secretary4  4  
7b7 ,effective date ,the amendments made
 by this section shall apply to taxable 
years beginning after ,december #ca1    
#bjag4  #bjd4 ,increase in gross        
receipts test for construction contract 
exception to percentage of completion   
method  7a7 ,increase  7#a7 ,in general 
,clause 7ii7 of section                 
#dfj7;e77#a77;,b7 is amended to read as 
follows3  7ii7 who meets the gross      
receipts test of section #ddh7;c7 for   
the taxable year in which such contract 
is entered into4  4  7#b7 ,conforming   
amendments  7,a7 ,paragraph 7#b7 of     

section #dfj7;e7 is amended to read as  
follows3  7#b7 ,additional rules for    
determining gross receipts ,for purposes
 of paragraph 7#a77;,b77ii71 the        
,secretary shall prescribe regulations  
which provide attribution rules similar 
to section #ddh7;c7 and which take into 
account gross receipts of taxpayers who 
engage in construction contracts through
 partnerships1 joint ventures1 and      
corporations and which would otherwise  
not be taken into account under such    
section4  4  7,b7 ,section #dfj7;e7 is  
amended by striking paragraph 7#c7 and  
by redesignating paragraphs 7#d7 through
 7#f7 as paragraphs 7#c7 through 7#e71  
respectively4  7,c7 ,the last sentence  
of section #ef7;a77#c7 is amended by    
striking section #dfj7;e77#f7 and       
inserting section #dfj7;e77#e74  7b7    
,coordination with section #dha ,section
 #dfj7;e71 as amended by subsection 7a71
 is amended by adding at the end the    
following3  7#f7 ,coordination with     
section #dha ,if a taxpayer changes its 

method of accounting because subsections
 7a71 7b71 and 7c7 7#a7 and 7#b7 do not 
apply by reason of the exception under  
paragraph 7#a77;,b7 or such subsections 
apply to the taxpayer because such      
exception no longer applies to the      
taxpayer--  7,a7 such change shall be   
treated as initiated by the taxpayer1   
7,b7 such change shall be treated as    
made with the consent of the ,secretary1
 and  7,c7 such change shall be         
permitted only on a cut-off basis and no
 adjustments under section #dha7;a7     
shall be made4  4  7c7 ,effective date  
,the amendment made by this section     
shall apply to contracts entered into   
after ,december #ca1 #bjag1 in taxable  
years ending after such date4  ,,iii    
,modifications of expensing and cost    
recovery rules  ,a ,expensing rules     
#cja4 ,modifications of rules for       
expensing depreciable business assets   
7a7 ,increase in limitation  7#a7       
,dollar limitation ,section #agi7;b77#a7
 by striking #ejj1jjj and inserting     

#b1jjj1jjj4  7#b7 ,reduction in         
limitation ,section #agi7;b77#b7 is     
amended by striking #b1jjj1jjj and      
inserting #c1jjj1jjj4  7#c7 ,inflation  
adjustments  7,a7 ,in general           
,subparagraph 7,a7 of section           
#agi7;b77#f7 is amended-- 7i7 by        
striking #bjae and inserting #bjah1 and 
7ii7 by striking calendar year #bjad in 
clause 7ii7 and inserting calendar year 
#bjag4  7,b7 ,sport utility vehicles    
,section #agi7;b77#f7 is amended--  7i7 
by striking paragraphs 7#a7 and 7#b7 in 
subparagraph 7,a7 and inserting         
paragraphs 7#a71 7#b71 and 7#e77;,a71   
and  7ii7 by inserting 77#ajj in the    
case of any increase in the amount under
 paragraph 7#e77;,a77 after #aj1jjj in  
subparagraph 7,b74  7b7 ,section #agi   
property ,to include qualified real     
property  7#a7 ,in general ,subparagraph
 7,b7 of section #agi7;d77#a7 is amended
 to read as follows3  7,b7 which is--   
7i7 section #abde property 7as defined  
in section #abde7;a77#c771 or  7ii7     

qualified real property 7as defined in  
subsection 7f771 and  4  7#b7 ,qualified
 real property defined ,section #agi7;f7
 is amended to read as follows3  7f7    
,qualified real property ,for purposes  
of this subsection1 the term qualified  
real property means--  7#a7 any         
qualified improvement property described
 in section #afh7k77#c71 and  7#b7 any  
of the following improvements to        
nonresidential real property placed in  
service after the date such property was
 first placed in service3  7,a7 ,roofs4 
7,b7 ,heating1 ventilation1 and         
air-conditioning property4  7,c7 ,fire  
protection and alarm systems4  7,d7     
,security systems4  4  7c7 ,repeal of   
exclusion for certain property ,the last
 sentence of section #agi7;d77#a7 is    
amended by inserting 7other than        
paragraph 7#b7 thereof7 after section   
#ej7;b74  7d7 ,effective date ,the      
amendments made by this section shall   
apply to property placed in service in  
taxable years beginning after ,december 

#ca1 #bjag4  ,b ,cost recovery rules    
#caa4 #ej-percent expensing made        
permanent  7a7 ,in general ,section     
#afh7k77#b7 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 or  7,,iv7 which is   
qualified 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 to an amount     
equal to the lesser of--  7,i7 #ej      
percent of the adjusted basis of such   

automobile1 or  7,,ii7 #be1jjj4  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 
#bjah1 the #be1jjj 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 #bjag 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 ,conforming amendments  7#a7        
,amendments related to #ej-percent      
expensing  7,a7 ,each of the following  
provisions are amended by striking      
7#b77;,f7 each place it appears and     
inserting 7#b77;,d73 7i7 ,subparagraphs 
7,a77i71 7,b77i71 and 7,d77ii77,i7 of   
section #afh7k77#d74  7ii7 ,section     
#afh7k77#g74  7,b7 ,section #afh7k77#e7 
is amended--  7i7 in subparagraph 7,a7--
 7,i7 by striking before ,january #a1   
#bjbj1 and  7,,ii7 by striking before   
such date1  7ii7 in subparagraph        
7,b77ii7--  7,i7 by inserting crop or   
after will have more than one1 and      
7,,ii7 by inserting a marketable crop or
 yield of after begins bearing1  7iii7  
by striking 7#b77;,g7 in subparagraph   
7,e7 and inserting 7#b77;,e71 and  7iv7 
by striking subparagraph 7,f74  7,c7    
,section #afh7k71 as amended by         
subparagraphs 7,a77ii7 and 7,d71 is     

amended by striking paragraph 7#f7 and  
by redesignating paragraph 7#g7 as      
paragraph 7#f74  7,d7 ,section          
#afh7k77#g71 as in effect before the    
amendments made by subparagraphs        
7,a77ii7 and 7,c71 is amended by        
striking paragraphs 7#a7 and 7#b77;,f7  
and inserting paragraphs 7#a71          
7#b77;,f71 and 7#d74  7,e7 ,section     
#afh7k7 is amended by striking acquired 
after ,december #ca1 #bjjg1 and before  
,january #a1 #bjbj in the heading       
thereof4  7,f7 ,subsections             
7e77#g77;,b71 7k77#d71 7l77#c77;,a71    
7m77#b77;,b77i71 and 7n77#b77;,b77i7 of 
section #afh are each amended by        
striking bonus depreciation each place  
it appears in the text and headings     
thereof and inserting #ej-percent       
expensing4  7#b7 ,other conforming      
amendments  7,a7 ,section               
#afh7l77#c77;,b7 is amended by striking 
subsection 7k77#b77;,d7 and inserting   
subsection 7k77#b77;,b74  7,b7 ,section 
#afh7l77#d7 is amended by striking      

subsection 7k77#b77;,e7 and inserting   
subsection 7k77#b77;,c74  7,c7 ,section 
#afh7l77#e7 is amended by striking      
subsection 7k77#b77;,g7 and inserting   
subsection 7k77#b77;,e74  7,d7 ,section 
#dfj7;c77#f77;,b7 is amended by striking
 which-- and all that follows and       
inserting which has a recovery period of
 #g years or less44  7c7 ,effective     
dates  7#a7 ,in general ,the amendments 
made by this section shall apply to     
property placed in service after        
,december #ca1 #bjag1 in taxable years  
ending after such date4  7#b7 ,certain  
technical corrections  7,a7 ,the        
amendments made by subsection           
7b77#a77;,b77ii7 shall apply to         
specified plants planted or grafted     
after ,december #ca1 #bjae4  7,b7 ,the  
amendment made by subsection            
7b77#a77;,d7 shall apply to property    
placed in service after ,december #ca1  
#bjae1 in taxable years ending after    
such date4  #cab4 ,modifications of     
treatment of certain farm property  7a7 

,treatment of certain farm property as  
#e-,year property ,clause 7vii7 of      
section #afh7;e77#c77;,b7 is amended by 
striking after ,december #ca1 #bjjh1 and
 which is placed in service before      
,january #a1 #bjaj4  7b7 ,repeal of     
required use of #aej-,percent declining 
balance method ,section #afh7;b77#b7 is 
amended by striking subparagraph 7,b7   
and by redesignating subparagraphs 7,c7 
and 7,d7 as subparagraphs 7,b7 and 7,c71
 respectively4  7c7 ,effective date ,the
 amendments made by this section shall  
apply to property placed in service     
after ,december #ca1 #bjag1 in taxable  
years ending after such date4  #cac4    
,secretarial requirement to reexamine   
economic depreciation for classes of    
depreciable property  7a7 ,in general   
,paragraph 7#a7 of section #afh7;i7 is  
amended to read as follows3  7#a7 ,class
 life  7,a7 ,in general ,except as      
provided in this section1 the term class
 life means the class life 7if any7     
which would be applicable with respect  

to any property as of ,january #a1      
#aihf1 under subsection 7m7 of section  
#afg 7determined without regard to      
paragraph 7#d7 and as if the taxpayer   
had made an election under such         
subsection74 ,the reference in this     
paragraph to subsection 7m7 of section  
#afg shall be treated as a reference to 
such subsection as in effect on the day 
before the date of the enactment of the 
,revenue ,reconciliation ,act of #aiij4 
7,b7 ,secretarial authority to modify   
,rev4 ,proc4 #hg-ef  7i7 ,in general    
,the ,secretary1 through the ,office of 
,tax ,analysis and in consultation with 
the ,bureau of ,economic ,analysis of   
the ,department of ,commerce1 shall     
conduct an on-going study to--  7,i7    
determine1 and develop a schedule of1   
the economic depreciation of the major  
categories of depreciable property      
7other than specified property7 to      
approximate constant straight-line      
depreciation1 and  7,,ii7 develop       
recommendations regarding the proper    

economic depreciation for specified     
property4  7ii7 ,report ,not later than 
,december #ca1 #bjbj1 and not less      
frequently than every #e years after    
such date1 the ,secretary shall submit  
to the ,committee on ,finance of the    
,senate and to the ,committee on ,ways  
and ,means of the ,house of             
,representatives--  7,i7 any schedule   
developed under clause 7i77,i71 and     
7,,ii7 any recommendations developed    
under clause 7i77,,ii74  7iii7          
,effective date of schedules ,any       
schedule developed under clause 7i77,i7 
and submitted to ,congress under clause 
7ii7 shall take effect with respect to  
property placed in service on or after  
first day of the first calendar year    
beginning at least #a year after the    
date such schedule is submitted4  7,c7  
,treatment under ,congressional ,review 
,act ,for purposes of applying chapter  
#h of title #e1 ,united ,states ,code1  
any schedule developed and submitted    
under subparagraph 7,b7 shall be treated

 as a major rule4  7,d7 ,specified      
property ,for purposes of subparagraph  
7,b71 the term specified property       
means-- 7i7 any property which is       
classified under subsection 7e77#c7     
7other than subparagraph 7,c77v7        
thereof71 or  7ii7 any nonresidential   
real property1 residential rental       
property1 railroad grading or tunnel    
bore1 or water utility property4  4  7b7
 ,effective date ,the amendment made by 
this section shall take effect on the   
date of the enactment of this ,act4     
#cad4 ,modifications to depreciation    
limitations on luxury automobiles and   
personal use property  7a7 ,luxury      
automobiles  7#a7 ,in general           
#bhj;,f7a77#a77;,a7 is amended--  7,a7  
by striking #b1efj in clause 7i7 and    
inserting #aj1jjj1  7,b7 by striking    
#d1ajj in clause 7ii7 and inserting     
#af1jjj1  7,c7 by striking #b1dej in    
clause 7iii7 and inserting #i1fjj1 and  
7,d7 by striking #a1dge in clause 7iv7  
and inserting #e1gfj4  7#b7 ,conforming 

amendments  7,a7 ,clause 7ii7 of section
 #bhj;,f7a77#a77;,b7 is amended by      
striking #a1dge in the text and heading 
and inserting #e1gfj4  7,b7 ,paragraph  
7#g7 of section #bhj;,f7d7 is amended-- 
7i7 by striking #aihh in subparagraph   
7,a7 and inserting #bjah1 and  7ii7 by  
striking #aihg in subparagraph          
7,b77i77,,ii7 and inserting #bjag4  7b7 
,removal of computer equipment from     
listed property  7#a7 ,in general       
,section #bhj;,f7d77#d77;,a7 is amended 
by inserting and at the end of clause   
7iii7 and by striking clause 7iv74  7#b7
 ,conforming amendment ,section         
#bhj;,f7d77#d7 is amended by striking   
subparagraph 7,b7 and by redesignating  
subparagraph 7,c7 as subparagraph 7,b74 
7c7 ,effective date ,the amendments made
 by this section shall apply to property
 placed in service after ,december #ca1 
#bjag1 in taxable years ending after    
such date4  #cae4 ,reduction in         
amortization period for intangibles  7a7
 ,in general ,section #aig7;a7 is       

amended by adding at the end the        
following new sentence3 ,in the case of 
such an intangible acquired after the   
date of the enactment of the ,,invest   
,act of #bjag1 the preceding sentence   
shall be applied by substituting        
#aj-year period for #ae-year period44   
7b7 ,application of anti-,churning rules
 ,section #aig7;f77#i7 is amended by    
adding at the end the following3  7,g7  
,application to ,,invest ,act changes   
,if subparagraph 7,a7 or 7,f7 would     
apply to any section #aig intangible    
if-- 7i7 the date of the enactment of   
the ,,invest ,act of #bjag were         
substituted for the date of the         
enactment of this section each place it 
appears in each such subparagraph1 and  
7ii7 ,may #ag1 #bjag were substituted   
for ,july #be1 #aiia each place it      
appears in subparagraph 7,a71  then the 
last sentence of subsection 7a7         
7relating to #aj-year amortization7     
shall not apply to the transferee of    
such intangible4  4  7c7 ,conforming    

amendment ,section #aig7;e77#d77;,d77i7 
is amended by inserting 7#aj years in   
the case of a right acquired after the  
date of the enactment of the ,,invest   
,act of #bjag7 after #ae years4  7d7    
,effective date ,the amendments made by 
this section apply to acquisitions after
 the date of the enactment of this ,act 
in taxable years ending after such date4