[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[S. 1562 Introduced in Senate (IS)]







106th CONGRESS
  1st Session
                                S. 1562

    To amend the Internal Revenue Code of 1986 to classify certain 
     franchise operation property as 15-year depreciable property.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             August 5, 1999

  Mr. Nickles introduced the following bill; which was read twice and 
                  referred to the Committee on Finance

_______________________________________________________________________

                                 A BILL


 
    To amend the Internal Revenue Code of 1986 to classify certain 
     franchise operation property as 15-year depreciable property.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Small Business Franchise Property 
Recovery Act of 1999''.

SEC. 2. CLASS LIFE FOR FRANCHISE OPERATIONS.

    (a) In General.--Section 168(e)(3)(E) of the Internal Revenue Code 
of 1996 (classifying certain property as 15-year property) is amended 
by striking ``and'' at the end of the clause (ii), by striking the 
period at the end of clause (iii) and inserting ``, and'', and by 
adding at the end the following new clause:
                            ``(iv) any section 1250 property which is a 
                        franchise operation subject to section 1253.''.
    (b) Conforming Amendment.--Subparagraph (B) of section 168(g)(3) of 
such Code is amended by inserting after the item relating to 
subparagraph (E)(iii) in the table contained therein the following new 
item:

        ``(E)(iv)..............................................   15''.
    (c) Effective Date.--The amendments made by this section shall 
apply to property which is placed in service on or after the date of 
the enactment of this Act and to which section 168 of the Internal 
Revenue Code of 1986 applies after the amendment made by section 201 of 
the Tax Reform Act of 1986. A taxpayer may elect (in such form and 
manner as the Secretary of the Treasury may prescribe) to have such 
amendments apply with respect to any property placed in service before 
such date and to which such section so applies.
                                 <all>