Amends the Internal Revenue Code to: (1) extend for one year the 100% bonus depreciation allowance for business assets, and (2) increase the amount of alternative minimum tax (AMT) credits that corporate taxpayers may elect to accelerate in a taxable year in lieu of claiming bonus depreciation.
[Congressional Bills 112th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4196 Introduced in House (IH)]
112th CONGRESS
2d Session
H. R. 4196
To amend the Internal Revenue Code of 1986 to extend the allowance for
bonus depreciation for certain business assets.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
March 13, 2012
Mr. Tiberi (for himself, Mr. Larson of Connecticut, Mr. Paulsen, Mr.
Neal, Mr. Marchant, and Mr. Pascrell) introduced the following bill;
which was referred to the Committee on Ways and Means
_______________________________________________________________________
A BILL
To amend the Internal Revenue Code of 1986 to extend the allowance for
bonus depreciation for certain business assets.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. EXTENSION OF ALLOWANCE FOR BONUS DEPRECIATION FOR CERTAIN
BUSINESS ASSETS.
(a) Extension of 100 Percent Bonus Depreciation.--
(1) In general.--Paragraph (5) of section 168(k) of the
Internal Revenue Code of 1986 is amended--
(A) by striking ``January 1, 2012'' each place it
appears and inserting ``January 1, 2013'', and
(B) by striking ``January 1, 2013'' and inserting
``January 1, 2014''.
(2) Conforming amendments.--
(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''.
(B) Clause (ii) of section 460(c)(6)(B) of such
Code is amended to read as follows:
``(ii) is placed in service--
``(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)), or
``(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)).''.
(3) Effective date.--The amendments made by this subsection
shall apply to property placed in service after December 31,
2011.
(b) Expansion of Election To Accelerate AMT Credits in Lieu of
Bonus Depreciation.--
(1) In general.--Paragraph (4) of section 168(k) of such
Code is amended to read as follows:
``(4) Election to accelerate amt credits in lieu of bonus
depreciation.--
``(A) In general.--If a corporation elects to have
this paragraph apply for any taxable year--
``(i) paragraph (1) shall not apply to any
eligible qualified property placed in service
by the taxpayer in such taxable year,
``(ii) the applicable depreciation method
used under this section with respect to such
property shall be the straight line method, and
``(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).
``(B) Bonus depreciation amount.--For purposes of
this paragraph--
``(i) In general.--The bonus depreciation
amount for any taxable year is an amount equal
to 20 percent of the excess (if any) of--
``(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, over
``(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.
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).
``(ii) Limitation.--The bonus depreciation
amount for any taxable year shall not exceed
the lesser of--
``(I) 50 percent of the minimum tax
credit under section 53(b) for the
first taxable year ending after
December 31, 2011, or
``(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).
``(iii) Aggregation rule.--All corporations
which are treated as a single employer under
section 52(a) shall be treated--
``(I) as 1 taxpayer for purposes of
this paragraph, and
``(II) as having elected the
application of this paragraph if any
such corporation so elects.
``(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--
``(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,
``(ii) `April 1, 2008' shall be substituted
for `January 1, 2008' in subparagraph
(A)(iii)(I) thereof, and
``(iii) only adjusted basis attributable to
manufacture, construction, or production--
``(I) after March 31, 2008, and
before January 1, 2010, and
``(II) after December 31, 2010, and
before January 1, 2013, shall be taken
into account under subparagraph (B)(ii)
thereof.
``(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).
``(E) Other rules.--
``(i) Election.--Any election under this
paragraph may be revoked only with the consent
of the Secretary.
``(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--
``(I) paragraph (1) shall not apply
to any eligible qualified property, and
``(II) the applicable depreciation
method used under this section with
respect to such property shall be the
straight line method.
``(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.
``(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).''.
(2) Effective date.--The amendment made by this subsection
shall apply to taxable years ending after December 31, 2011.
(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--
(A) such amount determined under such paragraph as
in effect on the date before the date of enactment of
this Act--
(i) taking into account only property
placed in service before January 1, 2012, and
(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, and
(B) such amount determined under such paragraph as
amended by this Act--
(i) taking into account only property
placed in service after December 31, 2011, and
(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.
<all>
Introduced in House
Introduced in House
Referred to the House Committee on Ways and Means.
Llama 3.2 · runs locally in your browser
Ask anything about this bill. The AI reads the full text to answer.
Enter to send · Shift+Enter for new line