‘(A) IN GENERAL- In the case of any qualified noncommercial aircraft to which this subparagraph applies--
‘(i) the depreciation deduction provided by section 167(a) for the taxable year in which such property is placed in service shall include an allowance equal to 50 percent of the adjusted basis of the qualified noncommercial aircraft property, and
‘(ii) the adjusted basis of the qualified noncommercial aircraft property shall be reduced by the amount of such deduction before computing the amount otherwise allowable as a depreciation deduction under this chapter for such taxable year and any subsequent taxable year.
‘(B) APPLICATION TO AIRCRAFT PURCHASED IN 2010 OR 2011- Subparagraph (A) applies to qualified noncommercial aircraft property placed in service after December 31, 2009, and before January 1, 2012, which is--
‘(i) acquired by the taxpayer after December 31, 2009, and before January 1, 2012, but only if no written binding contract for the acquisition was in effect before January 1, 2010, or
‘(ii) acquired by the taxpayer pursuant to a written binding contract which was entered into after December 31, 2009, and before January 1, 2012, and
‘(A) IN GENERAL- Qualified noncommercial aircraft to which this subparagraph applies shall be treated as 3-year property.
‘(B) APPLICATION TO AIRCRAFT PURCHASED BEFORE 2015- Subparagraph (A) applies to qualified noncommercial aircraft placed in service after the date of the enactment of this subsection and before January 1, 2015, which is--
‘(i) acquired by the taxpayer after the date of the enactment of this subsection and before January 1, 2015, but only if no written binding contract for the acquisition was in effect before such date of the enactment, or
‘(ii) acquired by the taxpayer pursuant to a written binding contract which was entered into after December 31, 2008, and before January 1, 2015, and
‘(3) QUALIFIED NONCOMMERCIAL AIRCRAFT PROPERTY- For purposes of this subsection--
‘(A) IN GENERAL- The term ‘qualified noncommercial aircraft property’ means any aircraft--
‘(i) which is not used in the trade or business of transporting persons or property,
‘(ii) to which this section applies, and
‘(iii) the original use of which commences with the taxpayer after--
‘(I) December 31, 2009, for purposes of paragraph (1), and
‘(II) the date of the enactment of this subsection for purposes of paragraph (2).
‘(B) EXCEPTIONS-
‘(i) BONUS DEPRECIATION PROPERTY UNDER SUBSECTION (k)- The term ‘qualified noncommercial aircraft property’ shall not include any property to which subsection (k)(1) applies.
‘(ii) ALTERNATIVE DEPRECIATION PROPERTY- The term ‘qualified noncommercial aircraft property’ shall not include any property to which the alternative depreciation system under subsection (g) applies, determined--
‘(I) without regard to paragraph (7) of subsection (g) (relating to election to have system apply), and
‘(II) after application of section 280F(b) (relating to listed property with limited business use).
‘(iii) ELECTION OUT- If a taxpayer makes an election under this clause with respect to any class of property for any taxable year, this subsection shall not apply to all property in such class placed in service during such taxable year.
‘(C) SPECIAL RULE FOR SELF-CONSTRUCTED PROPERTY- In the case of a taxpayer manufacturing, constructing, or producing property for the taxpayer’s own use, if the taxpayer begins manufacturing, constructing, or producing the property--
‘(i) after December 31, 2009, and before January 1, 2012, for purposes of paragraph (1), and
‘(ii) after the date of the enactment of this subsection and before January 1, 2015, for purposes of paragraph (2),
the requirements of paragraph (1)(B) or (2)(B) (as the case may be) shall be treated as met.
‘(D) DEDUCTION ALLOWED IN COMPUTING MINIMUM TAX- For purposes of determining alternative minimum taxable income under section 55, the deduction under subsection (a) for qualified noncommercial aircraft property shall be determined under this section without regard to any adjustment under section 56.’.
U.S. Congress - Text of H.R.3844 as Introduced in House To amend the Internal Revenue Code of 1986 to provide a special depreciation allowance ...
