110 HR 2014 IH: Leasehold Improvement Depreciation Act U.S. House of Representatives 2007-04-24 text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain.

I 110th CONGRESS 1st Session H. R. 2014 IN THE HOUSE OF REPRESENTATIVES April 24, 2007 Mr. Crowley (for himself and Mr. Weller of Illinois) 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 permanently extend the 15-year recovery period for the depreciation of certain leasehold improvements and to modify the depreciation rules relating to such leasehold improvements for purposes of computing earnings and profits.

1.

Short title

This Act may be cited as the Leasehold Improvement Depreciation Act of 2007.

2.

Permanent extension and modification of depreciation rules relating to certain leasehold improvements

(a)

Permanent extension

Section 168(e)(3)(E)(iv) of the Internal Revenue Code of 1986 (defining 15-year property) is amended by striking placed in service before January 1, 2008. (b)

Depreciation rules for certain leasehold improvements for purposes of earnings and profits

Paragraph (3) of section 312(k) of such Code (relating to exception for tangible property) is amended by adding at the end the following new subparagraph: (C)

Treatment of qualified leasehold improvement property

In the case of any qualified leasehold improvement property (within the meaning of section 168(e)(6), the adjustment to earnings and profits for depreciation for any taxable year shall be determined under the alternative depreciation method (within the meaning of section 168(g)(2)), except that the recovery period shall be 15 years. . (c)

Conforming amendment

Subparagraph (A) of section 312(k)(3) of such Code is amended by striking subparagraph (B), and inserting subparagraphs (B) and (C),. (d)

Effective date

The amendments made by this section shall apply to taxable years beginning after the date of the enactment of this Act.