II 109th CONGRESS 2d Session S. 2345 IN THE SENATE OF THE UNITED STATES March 1, 2006 Mr. Grassley (for himself and Mr. Baucus) 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 exempt passenger vehicles eligible for the alternative motor vehicle credit and the credit for qualified electric vehicles from the limitation on depreciation for luxury automobiles.

1.

Short title

This Act may be cited as the America’s Business Choice Act.

2.

Exception from depreciation limitation for certain alternative and electric passenger automobiles

(a)

In general

Paragraph (1) of section 280F(a) of the Internal Revenue Code of 1986 (relating to limitation) is amended by adding at the end the following new subparagraph: (D)

Special rule for certain alternative motor vehicles and qualified electric vehicles

Subparagraph (A) shall not apply to any motor vehicle for which a credit is allowable under section 30 or 30B. . (b)

Conforming amendment

Subparagraph (C) of section 280F(a)(1) of the Internal Revenue Code of 1986 is amended by striking clause (ii) and by redesignating clause (iii) as clause (ii). (c)

Effective date

The amendments made by this section shall apply to property placed in service after the date of the enactment of this Act.