I 112th CONGRESS 2d Session H. R. 4199 IN THE HOUSE OF REPRESENTATIVES March 16, 2012 Mr. Rigell 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 close the corporate jet depreciation loophole and to increase the work opportunity tax credit for veterans.

1.

Short title

This Act may be cited as the Closing Corporate Jet Tax Loopholes to Employ Veterans Act of 2012 or as the Jets for Vets Act of 2012.

2.

General aviation aircraft treated as 7-year property

(a)

In general

Subparagraph (C) of section 168(e)(3) of the Internal Revenue Code of 1986 (relating to classification of certain property) is amended by striking and at the end of clause (iv), by redesignating clause (v) as clause (vi), and by inserting after clause (iv) the following new clause: (v)any general aviation aircraft, and . (b)

Class Life

Paragraph (3) of section 168(g) of the Internal Revenue Code of 1986 is amended by inserting after subparagraph (E) the following new subparagraph: (F)

General aviation aircraft

In the case of any general aviation aircraft, the recovery period used for purposes of paragraph (2) shall be 12 years. . (c)

General aviation aircraft

Subsection (i) of section 168 of the Internal Revenue Code of 1986 is amended by inserting after paragraph (19) the following new paragraph: (20)

General aviation aircraft

The term general aviation aircraft means any airplane or helicopter (including airframes and engines) not used in commercial or contract carrying of passengers or freight, but which primarily engages in the carrying of passengers. . (d)

Effective date

This section shall be effective for property placed in service after December 31, 2012.

3.

Increase in work opportunity tax credit for veterans

(a)

In general

In the case of any taxable year beginning after December 31, 2011, each of the specified veteran WOTC dollar amount limitations shall be increased by the corporate jet loophole savings amount with respect to such limitation. (b)

Specified veteran WOTC dollar amount limitation

For purposes of this section, the term specified veteran WOTC dollar amount limitation means each of the $12,000, $14,000, and $24,000 amounts contained in section 51(b)(3) of the Internal Revenue Code of 1986. (c)

Corporate jet loophole savings amount

For purposes of this section, the term corporate jet loophole savings amount means, with respect to each specified veteran WOTC dollar amount limitation, the amount obtained by multiplying such limitation by such percentage as the Secretary of the Treasury (or his designee) determines will result in an aggregate decrease in Federal revenue pursuant to this section which is equal to the aggregate increase in Federal revenue which the Secretary (or his designee) determines will result pursuant to section 1.