[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[S. 1361 Introduced in Senate (IS)]







110th CONGRESS
  1st Session
                                S. 1361

 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.


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                   IN THE SENATE OF THE UNITED STATES

                              May 10, 2007

  Mr. Conrad (for himself and Mr. Kyl) 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 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.

    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 ``Leasehold Improvement Depreciation 
Act of 2007''.

SEC. 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.
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