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Text of the Bonus Depreciation and Small Business Expense Extension Act

This bill was introduced on November 15, 2011, in a previous session of Congress, but was not enacted. The text of the bill below is as of Nov 15, 2011 (Introduced).

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Source: GPO

II

112th CONGRESS

1st Session

S. 1873

IN THE SENATE OF THE UNITED STATES

November 15, 2011

introduced the following bill; which was read twice and referred to the Committee on Finance

A BILL

To amend the Internal Revenue Code of 1986 to extend for 1 year the allowance for bonus depreciation and the increased expensing limitations for depreciable business assets.

1.

Short title

This Act may be cited as the Bonus Depreciation and Small Business Expense Extension Act.

2.

Extension of bonus depreciation; temporary 100 percent expensing for certain business assets

(a)

In general

Paragraph (2) of section 168(k) of the Internal Revenue Code of 1986 is amended—

(1)

by striking January 1, 2014 in subparagraph (A)(iv) and inserting January 1, 2015, and

(2)

by striking January 1, 2013 each place it appears and inserting January 1, 2014.

(b)

Temporary 100 percent expensing

Paragraph (5) of section 168(k) of the Internal Revenue Code of 1986 is amended—

(1)

by striking 2013 and inserting 2014, and

(2)

by striking 2012 each place it appears in the text and heading and inserting 2013.

(c)

Extension of election To accelerate the AMT credit in lieu of bonus depreciation

(1)

In general

Subclause (II) of section 168(k)(4)(D)(iii) of the Internal Revenue Code of 1986 is amended by striking 2013 and inserting 2014.

(2)

Round 3 extension property

Paragraph (4) of section 168(k) of such Code is amended by adding at the end the following new subparagraph:

(J)

Special rules for round 3 extension property

(i)

In general

In the case of round 3 extension property, this paragraph shall be applied without regard to—

(I)

the limitation described in subparagraph (B)(i) thereof, and

(II)

the business credit increase amount under subparagraph (E)(iii) thereof.

(ii)

Taxpayers previously electing acceleration

In the case of a taxpayer who made the election under subparagraph (A) for its first taxable year ending after March 31, 2008, a taxpayer who made the election under subparagraph (H)(ii) for its first taxable year ending after December 31, 2008, or a taxpayer who made the election under subparagraph (I)(iii) for its first taxable year ending after December 31, 2010—

(I)

the taxpayer may elect not to have this paragraph apply to round 3 extension property, but

(II)

if the taxpayer does not make the election under subclause (I), in applying this paragraph to the taxpayer the bonus depreciation amount, maximum amount, and maximum increase amount shall be computed and applied to eligible qualified property which is round 3 extension property.

The amounts described in subclause (II) shall be computed separately from any amounts computed with respect to eligible qualified property which is not round 2 extension property.
(iii)

Taxpayers not previously electing acceleration

In the case of a taxpayer who neither made the election under subparagraph (A) for its first taxable year ending after March 31, 2008, nor made the election under subparagraph (H)(ii) for its first taxable year ending after December 31, 2008, nor made the election under subparagraph (I)(iii) for its first taxable year ending after December 31, 2010—

(I)

the taxpayer may elect to have this paragraph apply to its first taxable year ending after December 31, 2011, and each subsequent taxable year, and

(II)

if the taxpayer makes the election under subclause (I), this paragraph shall only apply to eligible qualified property which is round 3 extension property.

(iv)

Round 3 extension property

For purposes of this subparagraph, the term round 3 extension property means property which is eligible qualified property solely by reason of the extension of the application of the special allowance under paragraph (1) pursuant to the amendments made by section 2(a) of the Bonus Depreciation and Small Business Expense Extension Act (and the application of such extension to this paragraph pursuant to the amendment made by section 2(c)(1) of such Act).

.

(d)

Conforming amendments

(1)

The heading for subsection (k) of section 168 of the Internal Revenue Code of 1986 is amended by striking January 1, 2013 and inserting January 1, 2014.

(2)

The heading for clause (ii) of section 168(k)(2)(B) of such Code is amended by striking pre-January 1, 2013 and inserting pre-January 1, 2014.

(3)

Paragraph (5) of section 168(l) of such Code is amended—

(A)

by striking and at the end of subparagraph (A),

(B)

by redesignating subparagraph (C) as subparagraph (B), and

(C)

by inserting after subparagraph (A) the following new subparagraph:

(B)

by substituting January 1, 2013 for January 1, 2014 in clause (i) thereof, and

.

(4)

Subparagraph (C) of section 168(n)(2) of such Code is amended by striking January 1, 2013 and inserting January 1, 2014.

(5)

Subparagraph (D) of section 1400L(b)(2) of such Code is amended by striking January 1, 2013 and inserting January 1, 2014.

(6)

Subparagraph (B) of section 1400N(d)(3) of such Code is amended by striking January 1, 2013 and inserting January 1, 2014.

(e)

Effective date

The amendments made by this section shall apply to property placed in service after December 31, 2011, in taxable years ending after such date.

3.

Extension of increased expensing limitations for certain depreciable business assets and treatment of certain real property as section 179 property

(a)

In general

Section 179(b) of the Internal Revenue Code of 1986 is amended—

(1)

by striking 2010 or 2011 each place it appears in paragraph (1)(B) and (2)(B) and inserting 2010, 2011, or 2012,

(2)

by striking 2012 each place it appears in paragraph (1)(C) and (2)(C) and inserting 2013, and

(3)

by striking 2012 each place it appears in paragraph (1)(D) and (2)(D) and inserting 2013.

(b)

Inflation adjustment

Subparagraph (A) of section 179(b)(6) of the Internal Revenue Code of 1986 is amended by striking 2012 and inserting 2013.

(c)

Computer software

Section 179(d)(1)(A)(ii) of the Internal Revenue Code of 1986 is amended by striking 2013 and inserting 2014.

(d)

Election

Section 179(c)(2) of the Internal Revenue Code of 1986 is amended by striking 2013 and inserting 2014.

(e)

Special rules for treatment of qualified real property

Section 179(f)(1) of the Internal Revenue Code of 1986 is amended by striking 2010 or 2011 and inserting 2010, 2011, or 2012.

(f)

Effective date

The amendments made by this section shall apply to taxable years beginning after December 31, 2011.