S 2240 ISCommentsClose CommentsPermalink

112th CONGRESSCommentsClose CommentsPermalink

2d SessionCommentsClose CommentsPermalink

S. 2240CommentsClose CommentsPermalink

To amend the Internal Revenue Code of 1986 to extend the allowance for bonus depreciation for certain business assets.CommentsClose CommentsPermalink

IN THE SENATE OF THE UNITED STATESCommentsClose CommentsPermalink

March 27, 2012CommentsClose CommentsPermalink

Ms. STABENOW (for herself, Mr. BLUNT, Mr. BROWN of Ohio, and Mr. ROBERTS) introduced the following bill; which was read twice and referred to the Committee on FinanceCommentsClose CommentsPermalink

A BILLCommentsClose CommentsPermalink

To amend the Internal Revenue Code of 1986 to extend the allowance for bonus depreciation for certain business assets.CommentsClose CommentsPermalink

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,CommentsClose CommentsPermalink

SECTION 1. EXTENSION OF ALLOWANCE FOR BONUS DEPRECIATION FOR CERTAIN BUSINESS ASSETS.

(a) Extension of 100 Percent Bonus Depreciation-CommentsClose CommentsPermalink





(1) IN GENERAL- Paragraph (5) of section 168(k) of the Internal Revenue Code of 1986 is amended--CommentsClose CommentsPermalink





(A) by striking ‘January 1, 2012’ each place it appears and inserting ‘January 1, 2013’, andCommentsClose CommentsPermalink





(B) by striking ‘January 1, 2013’ and inserting ‘January 1, 2014’.CommentsClose CommentsPermalink





(2) CONFORMING AMENDMENTS-CommentsClose CommentsPermalink





(A) The heading for paragraph (5) of section 168(k) of such Code is amended by striking ‘PRE-2012 PERIODS’ and inserting ‘PRE-2013 PERIODS’.CommentsClose CommentsPermalink





(B) Clause (ii) of section 460(c)(6)(B) of such Code is amended to read as follows:CommentsClose CommentsPermalink





‘(ii) is placed in service--CommentsClose CommentsPermalink





‘(I) after December 31, 2009, and before January 1, 2011 (January 1, 2012, in the case of property described in section 168(k)(2)(B)), orCommentsClose CommentsPermalink





‘(II) after December 31, 2011, and before January 1, 2013 (January 1, 2014, in the case of property described in section 168(k)(2)(B)).’.CommentsClose CommentsPermalink





(3) EFFECTIVE DATE- The amendments made by this subsection shall apply to property placed in service after December 31, 2011.CommentsClose CommentsPermalink





(b) Expansion of Election To Accelerate AMT Credits in Lieu of Bonus Depreciation-CommentsClose CommentsPermalink





(1) IN GENERAL- Paragraph (4) of section 168(k) of such Code is amended to read as follows:CommentsClose CommentsPermalink





‘(4) ELECTION TO ACCELERATE AMT CREDITS IN LIEU OF BONUS DEPRECIATION-CommentsClose CommentsPermalink





‘(A) IN GENERAL- If a corporation elects to have this paragraph apply for any taxable year--CommentsClose CommentsPermalink





‘(i) paragraph (1) shall not apply to any eligible qualified property placed in service by the taxpayer in such taxable year,CommentsClose CommentsPermalink





‘(ii) the applicable depreciation method used under this section with respect to such property shall be the straight line method, andCommentsClose CommentsPermalink





‘(iii) the limitation imposed by section 53(c) for such taxable year shall be increased by the bonus depreciation amount which is determined for such taxable year under subparagraph (B).CommentsClose CommentsPermalink





‘(B) BONUS DEPRECIATION AMOUNT- For purposes of this paragraph--CommentsClose CommentsPermalink





‘(i) IN GENERAL- The bonus depreciation amount for any taxable year is an amount equal to 20 percent of the excess (if any) of--CommentsClose CommentsPermalink





‘(I) the aggregate amount of depreciation which would be allowed under this section for eligible qualified property placed in service by the taxpayer during such taxable year if paragraph (1) applied to all such property, overCommentsClose CommentsPermalink





‘(II) the aggregate amount of depreciation which would be allowed under this section for eligible qualified property placed in service by the taxpayer during such taxable year if paragraph (1) did not apply to any such property.CommentsClose CommentsPermalink





The aggregate amounts determined under subclauses (I) and (II) shall be determined without regard to any election made under subsection (b)(2)(D), (b)(3)(D), or (g)(7) and without regard to subparagraph (A)(ii).CommentsClose CommentsPermalink





‘(ii) LIMITATION- The bonus depreciation amount for any taxable year shall not exceed the lesser of--CommentsClose CommentsPermalink





‘(I) 50 percent of the minimum tax credit under section 53(b) for the first taxable year ending after December 31, 2011, orCommentsClose CommentsPermalink





‘(II) the minimum tax credit under section 53(b) for such taxable year determined by taking into account only the adjusted minimum tax for taxable years ending before January 1, 2012 (determined by treating credits as allowed on a first-in, first-out basis).CommentsClose CommentsPermalink





‘(iii) AGGREGATION RULE- All corporations which are treated as a single employer under section 52(a) shall be treated--CommentsClose CommentsPermalink





‘(I) as 1 taxpayer for purposes of this paragraph, andCommentsClose CommentsPermalink





‘(II) as having elected the application of this paragraph if any such corporation so elects.CommentsClose CommentsPermalink





‘(C) ELIGIBLE QUALIFIED PROPERTY- For purposes of this paragraph, the term ‘eligible qualified property’ means qualified property under paragraph (2), except that in applying paragraph (2) for purposes of this paragraph--CommentsClose CommentsPermalink





‘(i) ‘March 31, 2008’ shall be substituted for ‘December 31, 2007’ each place it appears in subparagraph (A) and clauses (i) and (ii) of subparagraph (E) thereof,CommentsClose CommentsPermalink





‘(ii) ‘April 1, 2008’ shall be substituted for ‘January 1, 2008’ in subparagraph (A)(iii)(I) thereof, andCommentsClose CommentsPermalink





‘(iii) only adjusted basis attributable to manufacture, construction, or production--CommentsClose CommentsPermalink





‘(I) after March 31, 2008, and before January 1, 2010, andCommentsClose CommentsPermalink





‘(II) after December 31, 2010, and before January 1, 2013, shall be taken into account under subparagraph (B)(ii) thereof.CommentsClose CommentsPermalink





‘(D) CREDIT REFUNDABLE- For purposes of section 6401(b), the aggregate increase in the credits allowable under part IV of subchapter A for any taxable year resulting from the application of this paragraph shall be treated as allowed under subpart C of such part (and not any other subpart).CommentsClose CommentsPermalink





‘(E) OTHER RULES-CommentsClose CommentsPermalink





‘(i) ELECTION- Any election under this paragraph may be revoked only with the consent of the Secretary.CommentsClose CommentsPermalink





‘(ii) PARTNERSHIPS WITH ELECTING PARTNERS- In the case of a corporation making an election under subparagraph (A) and which is a partner in a partnership, for purposes of determining such corporation’s distributive share of partnership items under section 702--CommentsClose CommentsPermalink





‘(I) paragraph (1) shall not apply to any eligible qualified property, andCommentsClose CommentsPermalink





‘(II) the applicable depreciation method used under this section with respect to such property shall be the straight line method.CommentsClose CommentsPermalink





‘(iii) CERTAIN PARTNERSHIPS- In the case of a partnership in which more than 50 percent of the capital and profits interests are owned (directly or indirectly) at all times during the taxable year by one corporation (or by corporations treated as 1 taxpayer under subparagraph (B)(iii)), for purposes of subparagraph (B), each partner shall take into account its distributive share of the amounts determined by the partnership under subclauses (I) and (II) of clause (i) of such subparagraph for the taxable year of the partnership ending with or within the taxable year of the partner. The preceding sentence shall apply only to amounts determined with respect to property placed in service after December 31, 2011.CommentsClose CommentsPermalink





‘(iv) SPECIAL RULE FOR PASSENGER AIRCRAFT- In the case of any passenger aircraft, the written binding contract limitation under paragraph (2)(A)(iii)(I) shall not apply for purposes of subparagraphs (B)(i)(I) and (C).’.CommentsClose CommentsPermalink





(2) EFFECTIVE DATE- The amendment made by this subsection shall apply to taxable years ending after December 31, 2011.CommentsClose CommentsPermalink





(3) TRANSITIONAL RULE- In the case of a taxable year beginning before January 1, 2012, and ending after December 31, 2011, the bonus depreciation amount determined under paragraph (4) of section 168(k) of the Internal Revenue Code of 1986 for such year shall be the sum of--CommentsClose CommentsPermalink





(A) such amount determined under such paragraph as in effect on the date before the date of enactment of this Act--CommentsClose CommentsPermalink





(i) taking into account only property placed in service before January 1, 2012, andCommentsClose CommentsPermalink





(ii) multiplying the limitation under subparagraph (C)(ii) of such paragraph (as so in effect) by a fraction the numerator of which is the number of days in the taxable year before January 1, 2012, and the denominator of which is the number of days in the taxable year, andCommentsClose CommentsPermalink





(B) such amount determined under such paragraph as amended by this Act--CommentsClose CommentsPermalink





(i) taking into account only property placed in service after December 31, 2011, andCommentsClose CommentsPermalink





(ii) multiplying the limitation under subparagraph (B)(ii) of such paragraph (as so in effect) by a fraction the numerator of which is the number of days in the taxable year after December 31, 2011, and the denominator of which is the number of days in the taxable year.CommentsClose CommentsPermalink