,,ii #aafth ,,congress #b;d ,session ,s4 #dcgf ,,in ,,the ,,senate ,,of ,,the ,,united ,,states ,july #cj1 #bjbj,mr4 ,cruz 7for himself and ,ms4 ,mc,sally7 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 permanently allow a tax deduction at the time an investment in qualified property is made1 and for other purposes4 #a4 ,short title ,this ,act may be cited as the ,cost ,recovery and ,expensing ,acceleration to ,transform the ,economy and ,jumpstart ,opportunities for ,businesses and ,startups ,act of #bjbj or the ,,create ,,jobs ,act4 #b4 ,permanent full expensing for qualified property 7a7 ,in general ,paragraph 7#f7 of section #afh7k7 of the ,internal ,revenue ,code of #aihf is amended to read as follows3 7#f7 ,applicable percentage ,for purposes of this subsection1 the term applicable percentage means1 in the case of property placed in service 7or1 in the case of a specified plant described in paragraph 7#e71 a plant which is planted or grafted7 after ,september #bg1 #bjag1 #ajj percent4 4 7b7 ,conforming amendments 7#a7 ,section #afh7k7 of the ,internal ,revenue ,code of #aihf is amended-- 7,a7 in paragraph 7#b7-- 7i7 in subparagraph 7,a7-- 7,i7 in clause 7i77,v71 by inserting and at the end1 7,,ii7 in clause 7ii71 by striking clause 7ii7 of subparagraph 7,e71 and and inserting clause 7i7 of subparagraph 7,e741 and 7,,iii7 by striking clause 7iii71 7ii7 in subparagraph 7,b7-- 7,i7 in clause 7i7-- 7aa7 by striking subclauses 7,,ii7 and 7,,iii71 and 7bb7 by redesignating subclauses 7,,iv7 through 7,,vi7 as subclauses 7,,ii7 through 7,,iv71 respectively1 7,,ii7 by striking clause 7ii71 and 7,,iii7 by redesignating clauses 7iii7 and 7iv7 as clauses 7ii7 and 7iii71 respectively1 7iii7 in subparagraph 7,c7-- 7,i7 in clause 7i71 by striking and subclauses 7,,ii7 and 7,,iii7 of subparagraph 7,b77i71 and 7,,ii7 in clause 7ii71 by striking subparagraph 7,b77iii7 and inserting subparagraph 7,b77ii71 and 7iv7 in subparagraph 7,e7-- 7,i7 by striking clause 7i71 and 7,,ii7 by redesignating clauses 7ii7 and 7iii7 as clauses 7i7 and 7ii71 respectively1 and 7,b7 in paragraph 7#e77;,a71 by striking planted before ,january #a1 #bjbg1 or is grafted before such date to a plant that has already been planted1 and inserting planted or grafted4 7#b7 ,section #dfj7;c77#f77;,b7 of such ,code is amended by striking which and all that follows through the period and inserting which has a recovery period of #g years or less44 7c7 ,effective date ,the amendments made by this section shall take effect as if included in section #acbja of ,public ,law #aae-ig4 #c4 ,neutral cost recovery depreciation adjustment for residential rental property and nonresidential real property 7a7 ,in general ,section #afh of the ,internal ,revenue ,code of #aihf is amended by adding at the end thereof the following new subsection3 7n7 ,neutral cost recovery depreciation adjustment for residential rental property and nonresidential real property 7#a7 ,in general ,in the case of any applicable property1 the deduction under this section with respect to such property for any taxable year after the taxable year during which the property is placed in service shall be-- 7,a7 the amount determined under this section for such taxable year without regard to this subsection1 multiplied by 7,b7 the applicable neutral cost recovery ratio for such taxable year4 7#b7 ,applicable neutral cost recovery ratio ,for purposes of paragraph 7#a71 the applicable neutral cost recovery ratio for the applicable property for any taxable year is the number determined by-- 7,a7 dividing-- 7i7 the gross domestic product deflator for the calendar quarter ending in such taxable year which corresponds to the calendar quarter during which the property was placed in service by the taxpayer1 by 7ii7 the gross domestic product deflator for the calendar quarter during which the property was placed in service by the taxpayer1 and 7,b7 then multiplying the number determined under subparagraph 7,a7 by the number equal to #a4jc to the nth power where n is the number of full years in the period beginning on the #ast day of the calendar quarter during which the property was placed in service by the taxpayer and ending on the day before the beginning of the corresponding calendar quarter ending during such taxable year4 ,the applicable neutral cost recovery ratio shall never be less than #a4 ,the applicable neutral cost recovery ratio shall be rounded to the nearest #a_/ajjj4 7#c7 ,special rule for existing property ,in the case of any applicable property which is placed in service before the date of enactment of this subsection1 subparagraphs 7,a77ii7 and 7,b7 of paragraph 7#b7 shall be applied by substituting calendar quarter which includes the date of enactment of this subsection for calendar quarter during which the property was placed in service by the taxpayer each place it appears4 7#d7 ,gross domestic product deflator ,for purposes of paragraph 7#b71 the gross domestic product deflator for any calendar quarter is the implicit price deflator for the gross domestic product for such quarter 7as shown in the first revision thereof74 7#e7 ,election not to have subsection apply ,this subsection shall not apply to any applicable property if the taxpayer elects not to have this subsection apply to such property4 ,such an election1 once made1 shall be irrevocable4 7#f7 ,additional deduction not to affect basis or recapture 7,a7 ,in general ,the additional amount determined under this section by reason of this subsection shall not be taken into account in determining the adjusted basis of any applicable property or of any interest in a pass-thru entity which holds such property and shall not be treated as a deduction for depreciation for purposes of sections #abde and #abej4 7,b7 ,pass-thru entity defined ,for purposes of subparagraph 7,a71 the term pass-thru entity means-- 7i7 a regulated investment company1 7ii7 a real estate investment trust1 7iii7 an ,s corporation1 7iv7 a partnership1 7v7 an estate or trust1 and 7vi7 a common trust fund4 7#g7 ,applicable property ,for purposes of this subsection1 the term applicable property means residential rental property or nonresidential real property 7as such terms are defined in subsection 7e77#b774 4 7b7 ,minimum tax treatment ,paragraph 7#a7 of section #ef7;a7 of the ,internal ,revenue ,code of #aihf is amended by adding at the end thereof the following new subparagraph3 7,e7 ,use of neutral cost recovery ratio ,in the case of property to which section #afh7n7 applies1 the deduction allowable under this paragraph with respect to such property for any taxable year 7after the taxable year during which the property is placed in service7 shall be-- 7i7 the amount so allowable for such taxable year without regard to this subparagraph1 multiplied by 7ii7 the applicable neutral cost recovery ratio for such taxable year 7as determined under section #afh7n774 ,this subparagraph shall not apply to any property with respect to which there is an election in effect not to have section #afh7n7 apply4 4 7c7 ,effective date ,the amendments made by this section shall apply to property placed in service before1 on1 or after the date of the enactment of this ,act1 with respect to taxable years ending on or after such date4 #d4 ,elimination of amortization of research and experimental expenditures 7a7 ,in general ,subpart ,a of part ,,iii of subtitle ,c of title ,i of ,public ,law #aae-ig is amended by striking section #acbjf4 7b7 ,effective date ,the amendment made by this section shall take effect on the date of the enactment of this ,act4