II 110th CONGRESS 1st Session S. 1621 IN THE SENATE OF THE UNITED STATES June 14, 2007 Mr. Conrad (for himself, Mr. Crapo, Mr. Harkin, Mr. Roberts, Mrs. Lincoln, Mr. Bunning, and Mr. Salazar) 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 treat certain farming business machinery and equipment as 5-year property for purposes of depreciation.

1.

Certain farming business machinery and equipment treated as 5-year property

(a)

In general

Section 168(e)(3)(B) of the Internal Revenue Code of 1986 (defining 5-year property) is amended by striking and at the end of clause (v), by striking the period at the end of clause (vi)(III) and inserting , and, and by inserting after clause (vi) the following new clause: (vii)any machinery or equipment (other than any grain bin, cotton ginning asset, fence, or other land improvement) which is used in a farming business (as defined in section 263A(e)(4)) and placed in service before January 1, 2010. . (b)

Alternative system

The table contained in section 168(g)(3)(B) of the Internal Revenue Code of 1986 (relating to special rule for certain property assigned to classes) is amended by inserting after the item relating to subparagraph (B)(iii) the following: (B)(vii)10 . (c)

Effective date

The amendments made by this section shall apply to property placed in service after the date of the enactment of this Act.