I 112th CONGRESS 1st Session H. R. 3123 IN THE HOUSE OF REPRESENTATIVES October 6, 2011 Mr. Tiberi (for himself, Mr. Larson of Connecticut, Mr. Reichert, Mr. Peters, and Mr. Levin) 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 allow for annual elections to accelerate AMT credits in lieu of bonus depreciation.

1.

Short title

This Act may be cited as the American Job Creation and Investment Act of 2011.

2.

Expansion of election to accelerate AMT credits in lieu of bonus depreciation

(a)

Maximum increase amount

Clause (iii) of section 168(k)(4)(C) of the Internal Revenue Code of 1986 is amended by striking the lesser of and all that follows through 6 percent and inserting 50 percent. (b)

Allowance of pre-2011 AMT credits

Clause (iv) of section 168(k)(4)(E) of such Code is amended to read as follows: (iv)

AMT credit increase amount

For purposes of this paragraph, the term AMT credit increase amount means the minimum tax credit under section 53(b) for the first taxable year ending after December 31, 2010. For purposes of the preceding sentence, credits shall be treated as allowed on a first-in, first-out basis. . (c)

Application to partnerships

Subparagraph (C) of section 168(k)(4) of such Code is amended by adding at the end the following new clause: (v)

Application to partnerships

In the case of a partnership in which more than 50 percent of the capital and profits interests in the partnership are owned (directly or indirectly) at all times during the taxable year by the corporations treated as 1 taxpayer under clause (iv)— (I)this paragraph shall be applied at the partner level, and (II)each partner shall be treated as having for the taxable year an amount equal to such partner’s allocable share of the eligible qualified property for such taxable year (as determined under regulations prescribed by the Secretary). . (d)

Separate elections for each taxable year

(1)

Taxpayers previously electing acceleration

Clause (ii) of section 168(k)(4)(I) of such Code is amended— (A)by striking property, in subclause (I) and inserting property for its first taxable year ending after December 31, 2010, or, by separate elections, any subsequent taxable year, (B)by striking the election under subclause (I) in subclause (II) and inserting an election under subclause (I) for a taxable year, and (C)by adding at the end the following: A separate bonus depreciation amount, maximum amount, and maximum increase amount shall be computed for each of the taxpayer’s taxable years ending after December 31, 2010, determined by the round 2 extension property placed in service in the taxable year.. (2)

Taxpayers not previously electing acceleration

Clause (iii) of section 168(k)(4)(I) of such Code is amended— (A)by striking and each in subclause (I) and inserting or, by separate elections, any, (B)by striking the election under subclause (I) in subclause (II) and inserting an election under subclause (I) for a taxable year, and (C)by adding at the end the following: A separate bonus depreciation amount, maximum amount, and maximum increase amount shall be computed for each of the taxpayer’s taxable years ending after December 31, 2010, determined by the round 2 extension property placed in service in the taxable year.. (3)

Maximum amount

Clause (ii) of section 168(k)(4)(C) of such Code is amended by striking , reduced (but not below zero) by the sum of the bonus depreciation amounts for all preceding taxable years. (e)

Effective date

The amendments made by this section shall apply to property placed in service after December 31, 2010, in taxable years ending after such date.