[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4311 Introduced in House (IH)]

111th CONGRESS
  1st Session
                                H. R. 4311

 To amend the Internal Revenue Code of 1986 to extend the increase in 
             the expensing deduction for small businesses.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                           December 15, 2009

Mrs. Halvorson 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 extend the increase in 
             the expensing deduction for small businesses.

    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 ``Bonus Depreciation and Enhanced 
Expensing for Small Businesses Extension Act of 2009''.

SEC. 2. EXTENSION OF INCREASED EXPENSING FOR SMALL BUSINESSES.

    (a) In General.--Paragraph (7) of section 179(b) of the Internal 
Revenue Code of 1986 is amended--
            (1) by striking ``or 2009'' and inserting ``2009, or 
        2010'', and
            (2) by striking ``and 2009'' in the heading thereof and 
        inserting ``2009, or 2010''.
    (b) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2009.

SEC. 3. SPECIAL ALLOWANCE FOR CERTAIN PROPERTY ACQUIRED DURING 2010.

    (a) Extension of Special Allowance.--
            (1) In general.--Paragraph (2) of section 168(k) of the 
        Internal Revenue Code of 1986 is amended--
                    (A) by striking ``January 1, 2011'' and inserting 
                ``January 1, 2012'', and
                    (B) by striking ``January 1, 2010'' each place it 
                appears and inserting ``January 1, 2011''.
            (2) Conforming amendments.--
                    (A) The heading for subsection (k) of section 168 
                of such Code is amended by striking ``2010'' and 
                inserting ``2011''.
                    (B) The heading for clause (ii) of section 
                168(k)(2)(B) of such Code is amended by striking ``pre-
                january 1, 2010'' and inserting ``pre-january 1, 
                2011''.
                    (C) Subparagraph (B) of section 168(l)(5) of such 
                Code is amended by striking ``January 1, 2009'' and 
                inserting ``January 1, 2010''.
                    (D) Subparagraph (C) of section 168(n)(2) of such 
                Code is amended by striking ``January 1, 2009'' and 
                inserting ``January 1, 2010''.
                    (E) Subparagraph (B) of section 1400N(d)(3) of such 
                Code is amended by striking ``January 1, 2009'' and 
                inserting ``January 1, 2010''.
    (b) Extension of Election To Accelerate the AMT and Research 
Credits in Lieu of Bonus Depreciation.--Section 168(k)(4) of such Code 
(relating to election to accelerate the AMT and research credits in 
lieu of bonus depreciation) is amended--
            (1) by striking ``January, 1, 2010'' and inserting 
        ``January 1, 2011'' in subparagraph (D)(iii), and
            (2) by adding at the end the following new subparagraph:
                    ``(I) Special rules for 2010 extension property.--
                            ``(i) Taxpayers previously electing 
                        acceleration.--In the case of a taxpayer who 
                        made the election under subparagraph (A) for 
                        its first taxable year ending after March 31, 
                        2008--
                                    ``(I) the taxpayer may elect not to 
                                have this paragraph apply to 2010 
                                extension property, but
                                    ``(II) if the taxpayer does not 
                                make the election under subclause (I), 
                                in applying this paragraph to the 
                                taxpayer a separate bonus depreciation 
                                amount, maximum amount, and maximum 
                                increase amount shall be computed and 
                                applied to eligible qualified property 
                                which is 2010 extension property and to 
                                eligible qualified property which is 
                                not 2010 extension property.
                            ``(ii) Taxpayers not previously electing 
                        acceleration.--In the case of a taxpayer who 
                        did not make the election under subparagraph 
                        (A) for its first taxable year ending after 
                        March 31, 2008--
                                    ``(I) the taxpayer may elect to 
                                have this paragraph apply to its first 
                                taxable year ending after December 31, 
                                2009, and each subsequent taxable year, 
                                and
                                    ``(II) if the taxpayer makes the 
                                election under subclause (I), this 
                                paragraph shall only apply to eligible 
                                qualified property which is 2010 
                                extension property.
                            ``(iii) Modification of maximum increase 
                        amount.--In applying this paragraph with 
                        respect to 2010 extension property, 
                        subparagraph (C)(iii) shall be applied without 
                        regard to subclause (II) thereof.
                            ``(iv) 2010 extension property.--For 
                        purposes of this subparagraph, the term `2010 
                        extension property' means property which is 
                        eligible qualified property solely by reason of 
                        the extension of the application of the special 
                        allowance under paragraph (1) pursuant to the 
                        amendments made by section 3 of the Bonus 
                        Depreciation and Enhanced Expensing for Small 
                        Businesses Extension Act of 2009 (and the 
                        application of such extension to this paragraph 
                        pursuant to the amendment made by section 
                        3(b)(1) of such Act).''.
    (c) Effective Date.--The amendments made by this section shall 
apply to property placed in service after December 31, 2009, in taxable 
years ending after such date.
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