[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[S. 2723 Introduced in Senate (IS)]

111th CONGRESS
  1st Session
                                S. 2723

    To amend the Internal Revenue Code of 1986 to provide a special 
 depreciation allowance and recovery period for noncommercial aircraft 
                               property.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                            November 3, 2009

 Mr. Brownback (for himself and Mr. Roberts) 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 a special 
 depreciation allowance and recovery period for noncommercial aircraft 
                               property.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SPECIAL DEPRECIATION ALLOWANCE AND RECOVERY PERIOD FOR 
              NONCOMMERCIAL AIRCRAFT PROPERTY.

    (a) In General.--Section 168 of the Internal Revenue Code of 1986 
is amended by adding at the end the following:
    ``(o) Special Allowance for Noncommercial Airplanes.--
            ``(1) Additional allowance.--
                    ``(A) In general.--In the case of any qualified 
                noncommercial aircraft to which this subparagraph 
                applies--
                            ``(i) the depreciation deduction provided 
                        by section 167(a) for the taxable year in which 
                        such property is placed in service shall 
                        include an allowance equal to 50 percent of the 
                        adjusted basis of the qualified noncommercial 
                        aircraft property, and
                            ``(ii) the adjusted basis of the qualified 
                        noncommercial aircraft property shall be 
                        reduced by the amount of such deduction before 
                        computing the amount otherwise allowable as a 
                        depreciation deduction under this chapter for 
                        such taxable year and any subsequent taxable 
                        year.
                    ``(B) Application to aircraft purchased in 2010 or 
                2011.--Subparagraph (A) applies to qualified 
                noncommercial aircraft property placed in service after 
                December 31, 2009, and before January 1, 2012, which 
                is--
                            ``(i) acquired by the taxpayer after 
                        December 31, 2009, and before January 1, 2012, 
                        but only if no written binding contract for the 
                        acquisition was in effect before January 1, 
                        2010, or
                            ``(ii) acquired by the taxpayer pursuant to 
                        a written binding contract which was entered 
                        into after December 31, 2009, and before 
                        January 1, 2012.
            ``(2) Recovery period.--For purposes of this section--
                    ``(A) In general.--Qualified noncommercial aircraft 
                to which this subparagraph applies shall be treated as 
                3-year property.
                    ``(B) Application to aircraft purchased before 
                2015.--Subparagraph (A) applies to qualified 
                noncommercial aircraft placed in service after the date 
                of the enactment of this subsection and before January 
                1, 2015, which is--
                            ``(i) acquired by the taxpayer after the 
                        date of the enactment of this subsection and 
                        before January 1, 2015, but only if no written 
                        binding contract for the acquisition was in 
                        effect before such date of the enactment, or
                            ``(ii) acquired by the taxpayer pursuant to 
                        a written binding contract which was entered 
                        into after December 31, 2008, and before 
                        January 1, 2015.
            ``(3) Qualified noncommercial aircraft property.--For 
        purposes of this subsection--
                    ``(A) In general.--The term `qualified 
                noncommercial aircraft property' means any aircraft--
                            ``(i) which is not used in the trade or 
                        business of transporting persons or property,
                            ``(ii) to which this section applies, and
                            ``(iii) the original use of which commences 
                        with the taxpayer after--
                                    ``(I) December 31, 2009, for 
                                purposes of paragraph (1), and
                                    ``(II) the date of the enactment of 
                                this subsection for purposes of 
                                paragraph (2).
                    ``(B) Exceptions.--
                            ``(i) Bonus depreciation property under 
                        subsection (k).--The term `qualified 
                        noncommercial aircraft property' shall not 
                        include any property to which subsection (k)(1) 
                        applies.
                            ``(ii) Alternative depreciation property.--
                        The term `qualified noncommercial aircraft 
                        property' shall not include any property to 
                        which the alternative depreciation system under 
                        subsection (g) applies, determined--
                                    ``(I) without regard to paragraph 
                                (7) of subsection (g) (relating to 
                                election to have system apply), and
                                    ``(II) after application of section 
                                280F(b) (relating to listed property 
                                with limited business use).
                            ``(iii) Election out.--If a taxpayer makes 
                        an election under this clause with respect to 
                        any class of property for any taxable year, 
                        this subsection shall not apply to all property 
                        in such class placed in service during such 
                        taxable year.
                    ``(C) Special rule for self-constructed property.--
                In the case of a taxpayer manufacturing, constructing, 
                or producing property for the taxpayer's own use, if 
                the taxpayer begins manufacturing, constructing, or 
                producing the property--
                            ``(i) after December 31, 2009, and before 
                        January 1, 2012, for purposes of paragraph (1), 
                        and
                            ``(ii) after the date of the enactment of 
                        this subsection and before January 1, 2015, for 
                        purposes of paragraph (2),
                the requirements of paragraph (1)(B) or (2)(B) (as the 
                case may be) shall be treated as met.
                    ``(D) Deduction allowed in computing minimum tax.--
                For purposes of determining alternative minimum taxable 
                income under section 55, the deduction under subsection 
                (a) for qualified noncommercial aircraft property shall 
                be determined under this section without regard to any 
                adjustment under section 56.''.
    (b) Effective Date.--The amendments made by this section shall 
apply to property placed in service after the date of the enactment of 
this Act, in taxable years ending after such date.
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