,,ii #aaf? ,,congress #b;d ,session ,s4 #dcgf ,,9 ,,! ,,s5ate ,,( ,,! ,,unit$ ,,/ates ,july #cj1 #bjbj,mr4 ,cruz 7= himself & ,ms4 ,mc,sally7 introduc$ ! foll[+ bill2 :i* 0 read twice & ref]r$ to ! ,committee on ,f9ance ,a ,,bill ,to am5d ! ,int]nal ,rev5ue ,code ( #aihf to p]man5tly all[ a tax d$uction at ! "t an inve/m5t 9 qualifi$ prop]ty is made1 & = o!r purposes4 #a4 ,%ort title ,?is ,act may be cit$ z ! ,co/ ,recov]y & ,exp5s+ ,accel]ation to ,trans=m ! ,economy & ,jump/>t ,opportunities = ,bus9esses & ,/>tups ,act ( #bjbj or ! ,,create ,,jobs ,act4 #b4 ,p]man5t full exp5s+ = qualifi$ prop]ty 7a7 ,9 g5]al ,p>agraph 7#f7 ( section #afh7k7 ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$ to read z foll[s3 7#f7 ,applicable p]c5tage ,= purposes ( ?is subsection1 ! t]m applicable p]c5tage means1 9 ! case ( prop]ty plac$ 9 s]vice 7or1 9 ! case ( a specifi$ plant describ$ 9 p>agraph 7#e71 a plant :i* is plant$ or graft$7 aft] ,septemb] #bg1 #bjag1 #ajj p]c5t4 4 7b7 ,con=m+ am5dm5ts 7#a7 ,section #afh7k7 ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$-- 7,a7 9 p>agraph 7#b7-- 7i7 9 subp>agraph 7,a7-- 7,i7 9 clause 7i77,v71 by ins]t+ & at ! end1 7,,ii7 9 clause 7ii71 by /rik+ clause 7ii7 ( subp>agraph 7,e71 & & ins]t+ clause 7i7 ( subp>agraph 7,e741 & 7,,iii7 by /rik+ clause 7iii71 7ii7 9 subp>agraph 7,b7-- 7,i7 9 clause 7i7-- 7aa7 by /rik+ subclauses 7,,ii7 & 7,,iii71 & 7bb7 by r$esignat+ subclauses 7,,iv7 ?r\gh 7,,vi7 z subclauses 7,,ii7 ?r\gh 7,,iv71 respectively1 7,,ii7 by /rik+ clause 7ii71 & 7,,iii7 by r$esignat+ clauses 7iii7 & 7iv7 z clauses 7ii7 & 7iii71 respectively1 7iii7 9 subp>agraph 7,c7-- 7,i7 9 clause 7i71 by /rik+ & subclauses 7,,ii7 & 7,,iii7 ( subp>agraph 7,b77i71 & 7,,ii7 9 clause 7ii71 by /rik+ subp>agraph 7,b77iii7 & ins]t+ subp>agraph 7,b77ii71 & 7iv7 9 subp>agraph 7,e7-- 7,i7 by /rik+ clause 7i71 & 7,,ii7 by r$esignat+ clauses 7ii7 & 7iii7 z clauses 7i7 & 7ii71 respectively1 & 7,b7 9 p>agraph 7#e77;,a71 by /rik+ plant$ be=e ,janu>y #a1 #bjbg1 or is graft$ be=e su* date to a plant t has already be5 plant$1 & ins]t+ plant$ or graft$4 7#b7 ,section #dfj7;c77#f77;,b7 ( su* ,code is am5d$ by /rik+ :i* & all t foll[s ?r\gh ! p]iod & ins]t+ :i* has a recov]y p]iod ( #g ye>s or less44 7c7 ,effective date ,! am5dm5ts made by ?is section %all take effect z if includ$ 9 section #acbja ( ,public ,law #aae-ig4 #c4 ,neutral co/ recov]y depreciation adju/m5t = resid5tial r5tal prop]ty & nonresid5tial real prop]ty 7a7 ,9 g5]al ,section #afh ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$ by add+ at ! end !re( ! foll[+ new subsection3 7n7 ,neutral co/ recov]y depreciation adju/m5t = resid5tial r5tal prop]ty & nonresid5tial real prop]ty 7#a7 ,9 g5]al ,9 ! case ( any applicable prop]ty1 ! d$uction "u ?is section ) respect to su* prop]ty = any taxable ye> aft] ! taxable ye> dur+ :i* ! prop]ty is plac$ 9 s]vice %all be-- 7,a7 ! am\nt det]m9$ "u ?is section = su* taxable ye> )\t reg>d to ?is subsection1 multipli$ by 7,b7 ! applicable neutral co/ recov]y ratio = su* taxable ye>4 7#b7 ,applicable neutral co/ recov]y ratio ,= purposes ( p>agraph 7#a71 ! applicable neutral co/ recov]y ratio = ! applicable prop]ty = any taxable ye> is ! numb] det]m9$ by-- 7,a7 divid+-- 7i7 ! gross dome/ic product deflator = ! cal5d> qu>t] end+ 9 su* taxable ye> :i* corresponds to ! cal5d> qu>t] dur+ :i* ! prop]ty 0 plac$ 9 s]vice by ! taxpay]1 by 7ii7 ! gross dome/ic product deflator = ! cal5d> qu>t] dur+ :i* ! prop]ty 0 plac$ 9 s]vice by ! taxpay]1 & 7,b7 !n multiply+ ! numb] det]m9$ "u subp>agraph 7,a7 by ! numb] equal to #a4jc to ! n? p[] :]e n is ! numb] ( full ye>s 9 ! p]iod beg9n+ on ! #a/ day ( ! cal5d> qu>t] dur+ :i* ! prop]ty 0 plac$ 9 s]vice by ! taxpay] & end+ on ! day be=e ! beg9n+ ( ! correspond+ cal5d> qu>t] end+ dur+ su* taxable ye>4 ,! applicable neutral co/ recov]y ratio %all nev] be less ?an #a4 ,! applicable neutral co/ recov]y ratio %all be r\nd$ to ! ne>e/ #a_/ajjj4 7#c7 ,special rule = exi/+ prop]ty ,9 ! case ( any applicable prop]ty :i* is plac$ 9 s]vice be=e ! date ( enactm5t ( ?is subsection1 subp>agraphs 7,a77ii7 & 7,b7 ( p>agraph 7#b7 %all be appli$ by sub/itut+ cal5d> qu>t] :i* includes ! date ( enactm5t ( ?is subsection = cal5d> qu>t] dur+ :i* ! prop]ty 0 plac$ 9 s]vice by ! taxpay] ea* place x appe>s4 7#d7 ,gross dome/ic product deflator ,= purposes ( p>agraph 7#b71 ! gross dome/ic product deflator = any cal5d> qu>t] is ! implicit price deflator = ! gross dome/ic product = su* qu>t] 7z %[n 9 ! fir/ revision !re(74 7#e7 ,election n to h subsection apply ,?is subsection %all n apply to any applicable prop]ty if ! taxpay] elects n to h ?is subsection apply to su* prop]ty4 ,su* an election1 once made1 %all be irrevocable4 7#f7 ,additional d$uction n to affect basis or recapture 7,a7 ,9 g5]al ,! additional am\nt det]m9$ "u ?is section by reason ( ?is subsection %all n be tak5 into acc\nt 9 det]m9+ ! adju/$ basis ( any applicable prop]ty or ( any int]e/ 9 a pass-?ru entity :i* holds su* prop]ty & %all n be treat$ z a d$uction = depreciation = purposes ( sections #abde & #abej4 7,b7 ,pass-?ru entity def9$ ,= purposes ( subp>agraph 7,a71 ! t]m pass-?ru entity means-- 7i7 a regulat$ inve/m5t company1 7ii7 a real e/ate inve/m5t tru/1 7iii7 an ,s corporation1 7iv7 a p>tn]%ip1 7v7 an e/ate or tru/1 & 7vi7 a common tru/ fund4 7#g7 ,applicable prop]ty ,= purposes ( ?is subsection1 ! t]m applicable prop]ty means resid5tial r5tal prop]ty or nonresid5tial real prop]ty 7z su* t]ms are def9$ 9 subsection 7e77#b774 4 7b7 ,m9imum tax treatm5t ,p>agraph 7#a7 ( section #ef7;a7 ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$ by add+ at ! end !re( ! foll[+ new subp>agraph3 7,e7 ,use ( neutral co/ recov]y ratio ,9 ! case ( prop]ty to :i* section #afh7n7 applies1 ! d$uction all[able "u ?is p>agraph ) respect to su* prop]ty = any taxable ye> 7aft] ! taxable ye> dur+ :i* ! prop]ty is plac$ 9 s]vice7 %all be-- 7i7 ! am\nt s all[able = su* taxable ye> )\t reg>d to ?is subp>agraph1 multipli$ by 7ii7 ! applicable neutral co/ recov]y ratio = su* taxable ye> 7z det]m9$ "u section #afh7n774 ,?is subp>agraph %all n apply to any prop]ty ) respect to :i* !re is an election 9 effect n to h section #afh7n7 apply4 4 7c7 ,effective date ,! am5dm5ts made by ?is section %all apply to prop]ty plac$ 9 s]vice be=e1 on1 or aft] ! date ( ! enactm5t ( ?is ,act1 ) respect to taxable ye>s end+ on or aft] su* date4 #d4 ,elim9ation ( amortization ( rese>* & exp]im5tal exp5ditures 7a7 ,9 g5]al ,subp>t ,a ( "p ,,iii ( subtitle ,c ( title ,i ( ,public ,law #aae-ig is am5d$ by /rik+ section #acbjf4 7b7 ,effective date ,! am5dm5t made by ?is section %all take effect on ! date ( ! enactm5t ( ?is ,act4