110 HR 4995 IH: Middle Class Jobs Protection Act of U.S. House of Representatives 2008-01-16 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 2d Session H. R. 4995 IN THE HOUSE OF REPRESENTATIVES January 16, 2008 Mr. Cantor (for himself, Mr. Hensarling, Mr. Blunt, Mr. Campbell of California, Ms. Granger, Mr. Jordan of Ohio, Mr. McHenry, Mrs. Bachmann, Mr. Herger, Mr. Chabot, Mr. Price of Georgia, Mr. Flake, Mr. Feeney, Mr. David Davis of Tennessee, Mr. Brown of South Carolina, Mr. Barrett of South Carolina, Mr. Garrett of New Jersey, Mr. Doolittle, Mr. Lamborn, Mr. Akin, Mr. Weldon of Florida, Mr. Kingston, Mr. Pitts, Mr. Marchant, Mr. Gingrey, Mr. Souder, Mr. Goode, Ms. Foxx, Mr. Roskam, Mr. Kuhl of New York, Mr. Walberg, Mr. Bishop of Utah, Mr. Franks of Arizona, Mr. King of Iowa, and Mr. Pence) 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 reduce corporate marginal income tax rates, and for other purposes.

1.

Short title

This Act may be cited as the Middle Class Jobs Protection Act of 2008.

2.

Reduction in corporate marginal income tax rates

(a)

General rule

Paragraph (1) of section 11(b) of the Internal Revenue Code of 1986 is amended— (1)by inserting and at the end of subparagraph (A), (2)by striking but does not exceed $75,000, in subparagraph (B) and inserting a period, (3)by striking subparagraphs (C) and (D), and (4)by striking the last 2 sentences. (b)

Personal service corporations

Paragraph (2) of section 11(b) of such Code is amended by striking 35 percent and inserting 25 percent. (c)

Conforming amendments

Paragraphs (1) and (2) of section 1445(e) of such Code are each amended by striking 35 percent and inserting 25 percent. (d)

Effective date

The amendments made by this section shall apply to taxable years beginning after the date of the enactment of this Act, except that the amendments made by subsection (c) shall take effect on such date.

3.

Temporary increase in limitation on expensing certain depreciable business assets

(a)

Dollar limitation

Paragraph (1) of section 179(b) of the Internal Revenue Code of 1986 (relating to limitations) is amended by striking $125,000 in the case of taxable years beginning after 2006 and before 2011 and inserting $125,000 in the case of taxable years beginning in 2007 or 2010 and $250,000 in the case of taxable years beginning in 2008 or 2009. (b)

Reduction in limitation

Paragraph (2) of section 179(b) of such Code (relating to limitations) is amended by striking $500,000 in the case of taxable years beginning after 2006 and before 2011 and inserting $500,000 in the case of taxable years beginning in 2007 or 2010 and $1,000,000 in the case of taxable years beginning in 2008 or 2009. (c)

Effective date

The amendments made by this section shall apply to taxable years beginning after December 31, 2007.

4.

50 percent allowance for depreciation for certain property acquired during 2008 and 2009

(a)

In general

Paragraph (4) of section 168(k) of the Internal Revenue Code of 1986 (relating to 50-percent bonus for certain property) is amended— (1)by striking May 5, 2003 each place it appears and inserting December 31, 2007, (2)by striking January 1, 2005 each place it appears and inserting January 1, 2010, (3)by striking May 6, 2003 in subparagraph (B)(ii)(I) and inserting January 1, 2008, (4)by striking January 1, 2006 in subparagraph (B)(iii) and inserting January 1, 2011, and (5)by striking of 30-percent bonus in the heading for subparagraph (E). (b)

Effective date

(1)

In general

The amendments made by this section shall apply to property placed in service in taxable years beginning after December 31, 2007. (2)

Exception for certain property

The amendments made by this section shall not apply to any property to which section 105 of the Gulf Opportunity Zone Act of 2005 applies.

5.

5-year carryback for certain net operating losses

(a)

In general

Subsection (H) of section 172(b)(1) of the Internal Revenue Code of 1986 is amended by inserting or beginning during 2008 or 2009, after 2002. (b)

Effective date

The amendments made by this section shall apply to net operating losses for taxable years beginning after December 31, 2007.

6.

3-year carryback for certain credits

(a)

General business credit

Subsection (a) of section 39 of the Internal Revenue Code of 1986 is amended by adding at the end the following new paragraph: (4)

Special rule for 2008 and 2009

In the case of an excess described in paragraph (1) arising in a taxable year beginning in 2008 or 2009— (A)paragraph (1)(A) shall be applied by substituting 3 taxable years for taxable year, (B)paragraph (2)(A) shall be applied by substituting 24 taxable years for 21 taxable years, and (C)paragraph (2)(B) shall be applied by substituting 23 taxable years for 20 taxable years. . (b)

Foreign tax credit

Section 904(c) of the Internal Revenue Code of 1986 is amended by adding at the end thereof the following: In the case of taxable years beginning in 2008 or 2009, the first sentence of this subsection shall, at the election of the taxpayer, be applied by substituting any of the three preceding taxable years for the first preceding taxable year.. (c)

Effective date

The amendments made by this section shall apply to credits arising in taxable years beginning after December 31, 2007.