110 HR 7298 IH: To amend the Internal Revenue Code of 1986 to make U.S. House of Representatives 2008-11-20 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. 7298 IN THE HOUSE OF REPRESENTATIVES November 20, 2008 Mr. Lamborn (for himself, Mr. Paul, and Ms. Foxx) 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 make permanent the deduction for expensing certain depreciable business assets and to allow a deduction for the original purchase of domestically manufactured automobiles.
1.
Small business expensing provisions made permanent
(a)
Increase in small business expensing made permanent
(1)
In general
Subsection (b) of section 179 of the Internal Revenue Code of 1986 (relating to limitations) is amended— (A)by striking $25,000 ($125,000 in the case of taxable years beginning after 2006 and before 2011) in paragraph (1) and inserting $500,000, and (B)by striking $200,000 ($500,000 in the case of taxable years beginning after 2006 and before 2011) in paragraph (2) and inserting $1,000,000. (2)
Conforming amendment
Section 179(b) of such Code is amended by striking paragraph (7). (b)
Expensing for computer software made permanent
Clause (ii) of section 179(d)(1)(A) of such Code is amended by striking and which is placed in service in a taxable year beginning after 2002 and before 2011,. (c)
Inflation adjustment
(1)So much of subparagraph (A) of section 179(b)(5) of such Code as precedes clause (i) thereof is amended to read as follows: (A)
In general
In the case of any taxable year beginning in a calendar year after 2009, the $500,000 and $1,00,000 amounts in paragraphs (1) and (2) shall each be increased by an amount equal to— . (2)Section 179(b)(5)(A)(ii) of such Code is amended by striking 2006 and inserting 2008. (d)
Effective date
The amendments made by this section shall apply to taxable years ending after the date of the enactment of this Act.
2.
Deduction for purchase of domestically manufactured automobiles
(a)
In general
Part VII of subchapter B of chapter 1 of the Internal Revenue Code of 1986 (relating to additional itemized deductions for individuals) is amended by redesignating section 224 as section 225 and by inserting after section 223 the following new section:
224.
Deduction for purchase of domestically manufactured automobiles
(a)
Allowance of deduction
In the case of an individual, there shall be allowed as a deduction an amount equal to the cost of any qualified automobile placed in service by the taxpayer during the taxable year. (b)
Limitation per vehicle
The amount of the deduction allowed under subsection (a) for any vehicle shall not exceed $10,000. (c)
Qualified automobile
For purposes of this section— (1)
In general
The term qualified automobile means any motor vehicle— (A)the final assembly of which is in the United States by a manufacturer, (B)the original use of which commences with the taxpayer, and (C)which is acquired for use by the taxpayer and not for resale. (2)
Motor vehicle
For purposes of paragraph (1), the term motor vehicle means any vehicle which is manufactured primarily for use on public streets, roads, and highways (not including a vehicle operated exclusively on a rail or rails) and which has at least 4 wheels. (d)
Special rules
(1)
Basis reduction
The basis of any property for which a deduction is allowable under subsection (a) shall be reduced by the amount of such deduction. (2)
Recapture
The Secretary shall, by regulations, provide for recapturing the benefit of any deduction allowable under subsection (a) with respect to any property which ceases to be property eligible for such deduction. (3)
Property used outside United States, etc., not qualified
No deduction shall be allowed under subsection (a) with respect to any property referred to in section 50(b) or with respect to the portion of the cost of any property taken into account under section 179. (4)
Property used in trade or business
No deduction shall be allowed under subsection (a) with respect to any property of a character which is subject to the allowance under section 167 (relating to allowance for depreciation, etc.). (e)
Denial of double benefit
No deduction shall be allowed under subsection (a) for any expense for which a deduction or credit is allowed under any other provision of this chapter. (f)
Termination
This section shall not apply to any taxable year beginning after December 31, 2010.
. (b)
Clerical amendment
The table of sections for part VII of subchapter B of chapter 1 of such Code is amended by striking the last item and inserting the following new items: Sec. 224. Deduction for purchase of domestically manufactured automobiles. Sec. 225. Cross reference. . (c)
Effective date
The amendments made by this section shall apply to property placed in service in taxable years ending after the date of the enactment of this Act.