A bill to amend the Internal Revenue Code of 1954 to increase the amount of the deduction for depreciation allowed with respect to certain small business property.

Amends the Internal Revenue Code to permit small businesses to depreciate business property according to the practical cost recovery method. Provides, under such method, for a class life of: (1) two years for highway transportation equipment, tool, dies, and similar assets; (2) five years for machinery; and (3) ten years for real estate improvements. Limits the amount of the tax deduction for such depreciation to $200,000 for the taxable year. Permits a one-year carryover of depreciation amounts which exceed such limit.