[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[S. 1407 Introduced in Senate (IS)]







110th CONGRESS
  1st Session
                                S. 1407

  To amend the Internal Revenue Code of 1986 to temporarily provide a 
    shorter recovery period for the depreciation of certain systems 
     installed in nonresidential and residential rental buildings.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                              May 16, 2007

 Mr. Pryor (for himself and Mr. Crapo) 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 temporarily provide a 
    shorter recovery period for the depreciation of certain systems 
     installed in nonresidential and residential rental buildings.

    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 ``Smart Buildings Act''.

SEC. 2. RECOVERY PERIOD FOR DEPRECIATION OF CERTAIN SYSTEMS INSTALLED 
              IN NONRESIDENTIAL AND RESIDENTIAL RENTAL BUILDINGS.

    (a) 20-Year Recovery Period.--Subparagraph (F) of section 168(e)(3) 
of the Internal Revenue Code of 1986 (relating to 20-year property) is 
amended to read as follows:
                    ``(F) 20-year property.--The term `20-year 
                property' means--
                            ``(i) initial clearing and grading land 
                        improvements with respect to any electric 
                        utility transmission and distribution plant, 
                        and
                            ``(ii) any property--
                                    ``(I) which is part of a heating, 
                                ventilation, air conditioning, or 
                                refrigeration system, or which replaces 
                                1 or more components of such a system 
                                but only if such system or such 
                                replacement component exceeds by at 
                                least 10 percent the applicable minimum 
                                performance standard for such system or 
                                component under the National Appliance 
                                Energy Conservation Act of 1987, the 
                                Energy Policy Act of 2005, or the 
                                American Society of Heating, 
                                Refrigerating and Air-Conditioning 
                                Engineers Standard 90.1,
                                    ``(II) which is installed on or in 
                                a building which is nonresidential real 
                                property or residential rental 
                                property,
                                    ``(III) the original use of which 
                                commences with the taxpayer (the owner 
                                or lessor in the case of residential 
                                rental property), and
                                    ``(IV) which is placed in service 
                                before January 1, 2012.''.
    (b) Requirement To Use Straight Line Method.--Paragraph (3) of 
section 168(b) of such Code (relating to property to which straight 
line method applies) is amended by redesignating subparagraphs (F), 
(G), and (H) as subparagraphs (G), (H), and (I), respectively, and by 
inserting after subparagraph (E) the following new subparagraph:
                    ``(F) Property described in subsection 
                (e)(3)(F)(ii).''.
    (c) Alternative System.--The table contained in section 
168(g)(3)(B) of such Code is amended by striking the item relating to 
subparagraph (F) and inserting the following new items:


``(F)(i)..................................................           25
(F)(ii)...................................................        25''.
 

    (d) Effective Date.--The amendments made by this section shall 
apply to property placed in service after December 31, 2007.
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