II 110th CONGRESS 2d Session S. 2572 IN THE SENATE OF THE UNITED STATES January 30, 2008 Mr. Voinovich 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 provide for bonus depreciation or an additional minimum tax credit in lieu of such bonus depreciation.

1.

Bonus depreciation for certain property acquired during 2008

(a)

In general

Subsection (k) of section 168 of the Internal Revenue Code of 1986 (relating to special allowance for certain property acquired after September 10, 2001, and before January 1, 2005) is amended— (1)by striking September 10, 2001 each place it appears and inserting December 31, 2007, (2)by striking September 11, 2001 each place it appears and inserting January 1, 2008, (3)by striking January 1, 2005 each place it appears and inserting January 1, 2009, and (4)by striking January 1, 2006 each place it appears and inserting January 1, 2010. (b)

50 percent allowance

Subparagraph (A) of section 168(k)(1) of such Code is amended by striking 30 percent and inserting 50 percent. (c)

Conforming amendments

(1)Subclause (I) of section 168(k)(2)(B)(i) of such Code is amended by striking and (iii) and inserting (iii), and (iv). (2)Subclause (IV) of section 168(k)(2)(B)(i) of such Code is amended by striking clauses (ii) and (iii) and inserting clause (iii). (3)Clause (i) of section 168(k)(2)(C) of such Code is amended by striking and (iii) and inserting , (iii), and (iv). (4)Clause (i) of section 168(k)(2)(F) of such Code is amended by striking $4,600 and inserting $8,000. (5)(A)Subsection (k) of section 168 of such Code is amended by striking paragraph (4). (B)Clause (iii) of section 168(k)(2)(D) of such Code is amended by striking the last sentence. (6)Paragraph (4) of section 168(l) of such Code is amended by redesignating subparagraphs (A), (B), and (C) as subparagraphs (B), (C), and (D) and inserting before subparagraph (B) (as so redesignated) the following new subparagraph: (A)

Bonus depreciation property under subsection (k)

Such term shall not include any property to which section 168(k) applies. . (7)Paragraph (5) of section 168(l) of such Code is amended— (A)by striking September 10, 2001 in subparagraph (A) and inserting December 31, 2007, and (B)by striking January 1, 2005 in subparagraph (B) and inserting January 1, 2009. (8)Subparagraph (D) of section 1400L(b)(2) of such Code is amended by striking January 1, 2005 and inserting January 1, 2010. (9)Paragraph (3) of section 1400N(d) of such Code is amended— (A)by striking September 10, 2001 in subparagraph (A) and inserting December 31, 2007, and (B)by striking January 1, 2005 in subparagraph (B) and inserting January 1, 2009. (10)Paragraph (6) of section 1400N(d) of such Code is amended by adding at the end the following new subparagraph: (E)

Exception for bonus depreciation property under section 168(k)

The term specified Gulf Opportunity Zone extension property shall not include any property to which section 168(k) applies. . (11)The heading for subsection (k) of section 168 of such Code is amended— (A)by striking September 10, 2001 and inserting December 31, 2007, and (B)by striking January 1, 2005 and inserting January 1, 2009. (12)The heading for clause (ii) of section 168(k)(2)(B) of such Code is amended by striking pre-January 1, 2005 and inserting pre-January 1, 2009. (d)

Effective date

The amendments made by this section shall apply to property placed in service after December 31, 2007, in taxable years ending after such date.

2.

Election to increase minimum tax credit in lieu of bonus depreciation

(a)

In general

Section 53 of the Internal Revenue Code of 1986 (relating to credit for prior year minimum tax liability) is amended by adding at the end the following new subsection: (f)

Additional credit in lieu of bonus depreciation

(1)

In general

In the case of a corporation making an election under this subsection for a taxable year, the limitation under subsection (c) shall be increased by an amount equal to the bonus depreciation amount. (2)

Bonus depreciation amount

For purposes of paragraph (1), the bonus depreciation amount for any taxable year is an amount equal to the product of— (A)35 percent, and (B)the excess (if any) of— (i)the aggregate amount of depreciation which would be determined under section 168 for property placed in service during such taxable year if no election under this subsection were made, over (ii)the aggregate allowance for depreciation allowable with respect to such property placed in service for such taxable year. (3)

Aggregation rule

All members of the same controlled group shall be treated as 1 corporation for purposes of this subsection. (4)

Election

Section 168(k) (relating to bonus depreciation) shall not apply to any property placed in service during a taxable year by a corporation making an election under this subsection for such taxable year. An election under this subsection may only be revoked with the consent of the Secretary. (5)

Credit refundable

The aggregate increase in the credit allowed by this section for any taxable year by reason of this subsection shall for purposes of this title (other than subsection (b)(2) of this section) be treated as a credit allowed to the taxpayer under subpart C. . (b)

Cross reference

Section 168(k) of such Code (relating to bonus depreciation) is amended by adding at the end the following new paragraph: (5)

Cross reference

For an election to claim additional minimum tax credits in lieu of the allowance determined under this subsection, see section 53(f). .