II 111th CONGRESS 1st Session S. 304 IN THE SENATE OF THE UNITED STATES January 22, 2009 Mr. Dorgan 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 stimulate business investment, and for other purposes.

1.

Short title

This Act may be cited as the Main Street Recovery Act.

2.

Temporary reinstatement of regular investment tax credit

The current year business credit under section 38 of Internal Revenue Code of 1986 shall include the amount that would be determined under section 46(a) of such Code (without regard to paragraphs (2) and (3) of such subsection) (as such Code was in effect before the amendments made by the Revenue Reconciliation Act of 1990 (Public Law 101–508)) with respect to property placed in service after 2008 and before July 1, 2010, if the regular percentage were 15 percent.

3.

Temporary extension and modification of special allowance for certain property

(a)

Temporary extension

(1)

In general

Paragraph (2) of section 168(k) of the Internal Revenue Code of 1986 is amended— (A)by striking January 1, 2010 and inserting July 1, 2011, and (B)by striking January 1, 2009 each place it appears and inserting July 1, 2010. (2)

Conforming amendments

(A)The heading for subsection (k) of section 168 of such Code is amended by striking January 1, 2009 and inserting July 1, 2010. (B)The heading for clause (ii) of section 168(k)(2)(B) of such Code is amended by striking pre-january 1, 2009 and inserting pre-july 1, 2010. (C)Subparagraph (D) of section 168(k)(4) of such Code is amended— (i)by striking and at the end of clause (i), (ii)by redesignating clause (ii) as clause (v), and (iii)by inserting after clause (i) the following new clauses: (ii)April 1, 2008 shall be substituted for January 1, 2008 in subparagraph (A)(iii)(I) thereof, (iii)January 1, 2009 shall be substituted for July 1, 2010 each place it appears, (iv)January 1, 2010 shall be substituted for July 1, 2011 in subparagraph (A)(iv) thereof, and . (D)Subparagraph (B) of section 168(l)(5) of such Code is amended by striking January 1, 2009 and inserting July 1, 2010. (E)Subparagraph (B) of section 1400N(d)(3) of such Code is amended by striking January 1, 2009 and inserting July 1, 2010. (b)

Expansion to certain real property

(1)

In general

Section 168(k)(2)(A)(i) of the Internal Revenue Code of 1986 is amended by striking or at the end of subclause (III), by inserting or at the end of subclause (IV), and by inserting after subclause (IV) the following new subclause: (V)which is nonresidential real property or residential rental property, . (2)

Conforming amendments

Sections 1400L(b)(2)(A)(i)(I) and 1400N(d)(2)(A)(i)(I) of such Code are each amended by inserting subclause (I), (II), (III), or (IV) of before section 168(k)(2)(A)(i). (c)

Effective dates

(1)

In general

Except as provided in paragraph (2), the amendments made by this section shall apply to property placed in service after December 31, 2008, in taxable years ending after such date. (2)

Technical amendment

Section 168(k)(4)(D)(ii) of the Internal Revenue Code of 1986, as added by subsection (a)(2)(C)(iii), shall apply to taxable years ending after March 31, 2008.

4.

Temporary increase in limitations on, and modification of, expensing of certain depreciable business assets

(a)

In general

Paragraph (7) of section 179(b) of the Internal Revenue Code of 1986 is amended— (1)by inserting , 2009, and 2010 after 2008 in the heading, and (2)by inserting , 2009, or 2010 after In the case of any taxable year beginning in 2008. (b)

Expensing available for all tangible depreciable property

Section 179(d)(1) of the Internal Revenue Code of 1986 (defining section 179 property) is amended by inserting and at the end of subparagraph (A)(ii), by striking subparagraph (B), and by redesignating subparagraph (C) as subparagraph (B). (c)

Effective date

The amendments made by this section shall apply to taxable years beginning after December 31, 2008.