[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4129 Introduced in House (IH)]







109th CONGRESS
  1st Session
                                H. R. 4129

     To amend the Internal Revenue Code of 1986 to repeal certain 
    limitations on the expensing of section 179 property, to allow 
taxpayers to elect shorter recovery periods for purposes of determining 
        the deduction for depreciation, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            October 25, 2005

 Mr. Sessions (for himself, Mr. Tiahrt, Mr. Terry, Mr. Flake, and Mr. 
   Sweeney) 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 repeal certain 
    limitations on the expensing of section 179 property, to allow 
taxpayers to elect shorter recovery periods for purposes of determining 
        the deduction for depreciation, 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. SHORT TITLE.

    This Act may be cited as the ``Expensing Property Expands our 
Nation's Strong Economy Act of 2005'' or as the ``EXPENSE Act of 
2005''.

SEC. 2. REPEAL OF CERTAIN LIMITATIONS ON THE EXPENSING OF SECTION 179 
              PROPERTY.

    (a) In General.--Section 179 of the Internal Revenue Code of 1986 
is amended by striking subsection (b) and by redesignating subsections 
(c) and (d) as subsections (b) and (c), respectively.
    (b) Conforming Amendments.--
            (1) Subsection (c) of section 179 of such Code, as 
        redesignated by subsection (a), is amended by striking 
        paragraphs (6) and (8), and by redesignating paragraphs (7), 
        (9), and (10) as paragraphs (6), (7), and (8), respectively.
            (2) Paragraph (6) of section 179 of such Code, as 
        redesignated by paragraph (1) and subsection (a), is amended by 
        striking ``paragraphs (2) and (6)'' and inserting ``paragraph 
        (2)''.
            (3) Sections 42(d)(2)(B)(i), 1397D(d)(1), 1400B(b)(4)(A)(i) 
        and 1400F(b)(4)(A)(i) of such Code are each amended by striking 
        ``section 179(d)(2)'' and inserting ``section 179(c)(2)''.
            (4) Subclause (I) of section 42(d)(2)(D)(iii) of such Code 
        is amended--
                    (A) by striking ``section 179(d)'' and inserting 
                ``section 179(c)'', and
                    (B) by striking ``section 179(d)(7)'' and inserting 
                ``section 179(c)(6)''.
            (5)(A) Subpart B of part III of subchapter U of chapter 1 
        of such Code is hereby repealed.
            (B) The table of subparts for such part III is amended by 
        striking the item relating to subpart B.
            (6)(A) Part III of subchapter X of chapter 1 of such Code 
        is amended by striking section 1400J.
            (B) The table of sections for such part is amended by 
        striking the item relating to section 1400J.
            (C) Paragraph (3) of section 1400E(b) of such Code is 
        amended by striking ``sections 1400F and 1400J'' and inserting 
        ``section 1400F''.
            (7) Clause (iv) of section 1400L(b)(2)(A) of such Code is 
        amended by striking ``section 179(d)'' and inserting ``section 
        179(c)''.
            (8) Section 1400L of such Code is amended by striking 
        subsection (f).
    (c) Effective Date.--The amendments made by this section shall 
apply to property placed in service during taxable years ending on or 
after the date of the enactment of this Act.

SEC. 3. ELECTION OF SHORTER RECOVERY PERIOD FOR PURPOSE OF DETERMINING 
              DEPRECIATION DEDUCTION.

    (a) In General.--Section 168 of the Internal Revenue Code of 1986 
is amended by adding at the end the following new subsection:
    ``(l) Election of Shorter Recovery Period.--
            ``(1) In general.--Notwithstanding subsections (c), (e), 
        (g), and (j), for purposes of subsection (a), the applicable 
        recovery period for any property placed in service during a 
        taxable year ending on or after the date of the enactment of 
        this subsection shall not exceed any period of 2 or more years 
        elected by the taxpayer with respect to such property.
            ``(2) Election.--An election made under this subsection 
        shall be made at such time and in such form and manner as the 
        Secretary may require. An election under this subsection, once 
        made, shall apply to the taxable year for which made and all 
        subsequent taxable years unless revoked with the consent of the 
        Secretary.
            ``(3) Transition rule.--In the case of any property placed 
        in service during a taxable year ending before the date of the 
        enactment of this subsection, paragraph (1) shall apply with 
        respect to the adjusted basis of such property in the same 
        manner as if such property (with such adjusted basis) were 
        placed in service on the first day of the taxable year which 
        includes the date of the enactment of this subsection. The 
        application of this paragraph shall not be treated as a change 
        in method of accounting for purposes of section 481.''.
    (b) Effective Date.--The amendment made by this section shall apply 
to property placed in service before, on, or after the date of the 
enactment of this Act.
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