[Congressional Bills 105th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1565 Introduced in House (IH)]







105th CONGRESS
  1st Session
                                H. R. 1565

 To amend the Internal Revenue Code of 1986 to increase the amount of 
   depreciable business assets which may be expensed, and for other 
                               purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                              May 8, 1997

 Mr. English of Pennsylvania (for himself, Mr. Watts of Oklahoma, Mr. 
  Fox of Pennsylvania, and Mr. Graham) 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 increase the amount of 
   depreciable business assets which may be expensed, and for other 
                               purposes.

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

SECTION 1. INCREASE IN EXPENSE TREATMENT FOR SMALL BUSINESSES.

    (a) General Rule.--Paragraph (1) of section 179(b) of the Internal 
Revenue Code of 1986 (relating to dollar limitation) is amended to read 
as follows:
            ``(1) Dollar limitation.--The aggregate cost which may be 
        taken into account under subsection (a) for any taxable year 
        shall not exceed $60,000.''
    (b) Increase in Amount of Section 179 Property At Which Phaseout 
Begins.--Paragraph (2) of section 179(b) of such Code (relating to 
reduction in limitation) is amended by striking ``$200,000'' and 
inserting ``$300,000''.
    (c) Increase in Section 280F Limitation on Automobiles Which Are 
Expensed Under Section 179.--
            (1) Paragraph (1) of section 280F(d) of such Code is 
        amended to read as follows:
            ``(1) Coordination with section 179.--
                    ``(A) In general.--Except as provided in 
                subparagraph (B), any deduction allowable under section 
                179 with respect to any listed property shall be 
                subject to the limitations of subsections (a) and (b), 
                and the limitation of paragraph (3) of this subsection, 
                in the same manner as if it were a depreciation 
                deduction allowable under section 168.
                    ``(B) Special rule for automobiles.--In the case of 
                any deduction allowable under section 179 with respect 
                to a passenger automobile, the limitation under 
                subsection (a) for the 1st taxable year of the recovery 
                period shall be increased by $15,700.''
            (2) Subparagraph (A) of section 280F(d)(7) of such Code is 
        amended--
                    (A) by striking ``subsection (a)'' and inserting 
                ``subsections (a) and (d)(1)(B)'', and
                    (B) by striking ``such subsection'' and inserting 
                ``such subsections''.
            (3) Subclause (II) of section 280F(d)(7)(B)(i) of such Code 
        is amended by inserting ``(October of 1996 in the case of the 
        dollar amount contained in subsection (d)(1)(B))'' after 
        ``October of 1987''.
    (d) Effective Date.--The amendments made by this section shall 
apply to property placed in service in taxable years beginning after 
December 31, 1996.
                                 <all>