,,ii  #aag? ,,congress  #b;d ,session   
,s4 #djab  ,,9 ,,! ,,s5ate ,,( ,,!      
,,unit$ ,,/ates  ,april #f1 #bjbb,mr4   
,braun introduc$ ! foll[+ bill2 :i* 0   
read twice & ref]r$ to ! ,committee on  
,f9ance  ,a ,,bill  ,to am5d ! ,int]nal 
,rev5ue ,code ( #aihf to modify !       
depreciation ( nonresid5tial real       
prop]ty & resid5tial r5tal prop]ty4  #a4
 ,%ort title ,?is ,act may be cit$ z !  
,r5ew+ ,inve/m5t 9 ,am]ican ,work]s &   
,supply ,*a9s ,act4  #b4 ,modification (
 depreciation ( nonresid5tial real      
prop]ty & resid5tial r5tal prop]ty  7a7 
#bj-,ye> recov]y p]iod  7#a7 ,9 g5]al   
,section #afh7;e77#c77;,f7 ( ! ,int]nal 
,rev5ue ,code ( #aihf is am5d$ to read z
 foll[s3  7,f7 #bj-ye> prop]ty ,! t]m   
#bj-ye> prop]ty means-- 7i7 initial     
cle>+ & grad+ l& improvem5ts ) respect  
to any electric utility transmission &  
di/ribution plant1  7ii7 any            
nonresid5tial real prop]ty1 &  7iii7 any
 resid5tial r5tal prop]ty4  4  7#b7     
,bonus depreciation n applicable        

,section #afh7k77#b77;,a77i77,i7 ( su*  
,code is am5d$ by ins]t+ 7o!r ?an       
nonresid5tial real prop]ty & resid5tial 
r5tal prop]ty7 be=e ! comma at ! end4   
7#c7 ,con=m+ am5dm5t ,! table conta9$ 9 
section #afh7;c7 ( su* ,code is am5d$-- 
7,a7 by /rik+ ! r[ relat+ to resid5tial 
r5tal prop]ty1 &  7,b7 by /rik+ ! r[    
relat+ to nonresid5tial real prop]ty4   
7b7 ,adju/m5t ( d$uction ,to provide    
neutral co/ recov]y ,section #afh ( su* 
,code is am5d$ by add+ at ! end ! foll[+
 new subsection3  7n7 ,neutral co/      
recov]y = nonresid5tial real prop]ty &  
resid5tial r5tal prop]ty  7#a7 ,9 g5]al 
,! d$uction o!rwise provid$ "u section  
#afg7;a7 ) respect to nonresid5tial real
 prop]ty & resid5tial r5tal prop]ty =   
any taxable ye> %all be equal to !      
product ( su* am\nt 7det]m9$ )\t reg>d  
to ?is subsection7 multipli$ by !       
applicable neutral co/ recov]y ratio )  
respect to su* prop]ty = su* taxable    
ye>4  7#b7 ,neutral co/ recov]y ratio ,=
 purposes ( p>agraph 7#a71 ! t]m        

applicable neutral co/ recov]y ratio    
means1 ) respect to any prop]ty = any   
taxable ye>1 ! product 7n less ?an #a & 
r\nd$ to ! ne>e/ #j4jja7 (-- 7,a7 !     
quoti5t (-- 7i7 ! gross dome/ic product 
deflator 7z det]m9$ by ! ,bureau (      
,economic ,analysis7 = ! cal5d> qu>t]   
end+ 9 su* taxable ye> :i* corresponds  
to ! cal5d> qu>t] dur+ :i* su* prop]ty 0
 plac$ 9 s]vice by ! taxpay]1 divid$ by 
7ii7 ! gross dome/ic product deflator 7z
 det]m9$ by ! ,bureau ( ,economic       
,analysis7 = ! cal5d> qu>t] dur+ :i* su*
 prop]ty 0 plac$ 9 s]vice by ! taxpay]1 
multipli$ by  7,b7 #a4jc to ! n? p[]1   
:]e n is ! numb] ( full ye>s 9 ! p]iod  
beg9n+ on ! #a/ day ( ! cal5d> qu>t]    
dur+ :i* su* 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  7#c7 ,application to  
prop]ty plac$ 9 s]vice be=e date (      
enactm5t ,9 ! case ( nonresid5tial real 
prop]ty or resid5tial r5tal prop]ty :i* 
is plac$ 9 s]vice be=e ! date ( enactm5t

 ( ?is subsection1 subp>agraphs 7,a77i71
 7,a77ii71 & 7,b7 ( p>agraph 7#b7 %all  
ea* be appli$ by sub/itut+ cal5d> qu>t] 
:i* includes ! date ( enactm5t ( ?is    
subsection = cal5d> qu>t] dur+ :i* su*  
prop]ty 0 plac$ 9 s]vice by ! taxpay]4  
7#d7 ,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  4  7c7 ,effective dates  7#a7    
#bj-ye> recov]y p]iod ,! am5dm5ts made  
by subsection 7a7 %all apply to prop]ty 

plac$ 9 s]vice aft] ! date ( ! enactm5t 
( ?is ,act1 9 taxable ye>s end+ aft] su*
 date4  7#b7 ,neutral co/ recov]y ,!    
am5dm5ts made by subsection 7b7 %all    
apply to taxable ye>s end+ aft] ! date (
 ! enactm5t ( ?is ,act4