[Congressional Bills 112th Congress]
[From the U.S. Government Publishing Office]
[S. 2240 Introduced in Senate (IS)]

112th CONGRESS
  2d Session
                                S. 2240

To amend the Internal Revenue Code of 1986 to extend the allowance for 
            bonus depreciation for certain business assets.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             March 27, 2012

   Ms. Stabenow (for herself, Mr. Blunt, Mr. Brown of Ohio, 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 extend the allowance for 
            bonus depreciation for certain business assets.

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

SECTION 1. EXTENSION OF ALLOWANCE FOR BONUS DEPRECIATION FOR CERTAIN 
              BUSINESS ASSETS.

    (a) Extension of 100 Percent Bonus Depreciation.--
            (1) In general.--Paragraph (5) of section 168(k) of the 
        Internal Revenue Code of 1986 is amended--
                    (A) by striking ``January 1, 2012'' each place it 
                appears and inserting ``January 1, 2013'', and
                    (B) by striking ``January 1, 2013'' and inserting 
                ``January 1, 2014''.
            (2) Conforming amendments.--
                    (A) The heading for paragraph (5) of section 168(k) 
                of such Code is amended by striking ``Pre-2012 
                periods'' and inserting ``Pre-2013 periods''.
                    (B) Clause (ii) of section 460(c)(6)(B) of such 
                Code is amended to read as follows:
                            ``(ii) is placed in service--
                                    ``(I) after December 31, 2009, and 
                                before January 1, 2011 (January 1, 
                                2012, in the case of property described 
                                in section 168(k)(2)(B)), or
                                    ``(II) after December 31, 2011, and 
                                before January 1, 2013 (January 1, 
                                2014, in the case of property described 
                                in section 168(k)(2)(B)).''.
            (3) Effective date.--The amendments made by this subsection 
        shall apply to property placed in service after December 31, 
        2011.
    (b) Expansion of Election To Accelerate AMT Credits in Lieu of 
Bonus Depreciation.--
            (1) In general.--Paragraph (4) of section 168(k) of such 
        Code is amended to read as follows:
            ``(4) Election to accelerate amt credits in lieu of bonus 
        depreciation.--
                    ``(A) In general.--If a corporation elects to have 
                this paragraph apply for any taxable year--
                            ``(i) paragraph (1) shall not apply to any 
                        eligible qualified property placed in service 
                        by the taxpayer in such taxable year,
                            ``(ii) the applicable depreciation method 
                        used under this section with respect to such 
                        property shall be the straight line method, and
                            ``(iii) the limitation imposed by section 
                        53(c) for such taxable year shall be increased 
                        by the bonus depreciation amount which is 
                        determined for such taxable year under 
                        subparagraph (B).
                    ``(B) Bonus depreciation amount.--For purposes of 
                this paragraph--
                            ``(i) In general.--The bonus depreciation 
                        amount for any taxable year is an amount equal 
                        to 20 percent of the excess (if any) of--
                                    ``(I) the aggregate amount of 
                                depreciation which would be allowed 
                                under this section for eligible 
                                qualified property placed in service by 
                                the taxpayer during such taxable year 
                                if paragraph (1) applied to all such 
                                property, over
                                    ``(II) the aggregate amount of 
                                depreciation which would be allowed 
                                under this section for eligible 
                                qualified property placed in service by 
                                the taxpayer during such taxable year 
                                if paragraph (1) did not apply to any 
                                such property.
                        The aggregate amounts determined under 
                        subclauses (I) and (II) shall be determined 
                        without regard to any election made under 
                        subsection (b)(2)(D), (b)(3)(D), or (g)(7) and 
                        without regard to subparagraph (A)(ii).
                            ``(ii) Limitation.--The bonus depreciation 
                        amount for any taxable year shall not exceed 
                        the lesser of--
                                    ``(I) 50 percent of the minimum tax 
                                credit under section 53(b) for the 
                                first taxable year ending after 
                                December 31, 2011, or
                                    ``(II) the minimum tax credit under 
                                section 53(b) for such taxable year 
                                determined by taking into account only 
                                the adjusted minimum tax for taxable 
                                years ending before January 1, 2012 
                                (determined by treating credits as 
                                allowed on a first-in, first-out 
                                basis).
                            ``(iii) Aggregation rule.--All corporations 
                        which are treated as a single employer under 
                        section 52(a) shall be treated--
                                    ``(I) as 1 taxpayer for purposes of 
                                this paragraph, and
                                    ``(II) as having elected the 
                                application of this paragraph if any 
                                such corporation so elects.
                    ``(C) Eligible qualified property.--For purposes of 
                this paragraph, the term `eligible qualified property' 
                means qualified property under paragraph (2), except 
                that in applying paragraph (2) for purposes of this 
                paragraph--
                            ``(i) `March 31, 2008' shall be substituted 
                        for `December 31, 2007' each place it appears 
                        in subparagraph (A) and clauses (i) and (ii) of 
                        subparagraph (E) thereof,
                            ``(ii) `April 1, 2008' shall be substituted 
                        for `January 1, 2008' in subparagraph 
                        (A)(iii)(I) thereof, and
                            ``(iii) only adjusted basis attributable to 
                        manufacture, construction, or production--
                                    ``(I) after March 31, 2008, and 
                                before January 1, 2010, and
                                    ``(II) after December 31, 2010, and 
                                before January 1, 2013, shall be taken 
                                into account under subparagraph (B)(ii) 
                                thereof.
                    ``(D) Credit refundable.--For purposes of section 
                6401(b), the aggregate increase in the credits 
                allowable under part IV of subchapter A for any taxable 
                year resulting from the application of this paragraph 
                shall be treated as allowed under subpart C of such 
                part (and not any other subpart).
                    ``(E) Other rules.--
                            ``(i) Election.--Any election under this 
                        paragraph may be revoked only with the consent 
                        of the Secretary.
                            ``(ii) Partnerships with electing 
                        partners.--In the case of a corporation making 
                        an election under subparagraph (A) and which is 
                        a partner in a partnership, for purposes of 
                        determining such corporation's distributive 
                        share of partnership items under section 702--
                                    ``(I) paragraph (1) shall not apply 
                                to any eligible qualified property, and
                                    ``(II) the applicable depreciation 
                                method used under this section with 
                                respect to such property shall be the 
                                straight line method.
                            ``(iii) Certain partnerships.--In the case 
                        of a partnership in which more than 50 percent 
                        of the capital and profits interests are owned 
                        (directly or indirectly) at all times during 
                        the taxable year by one corporation (or by 
                        corporations treated as 1 taxpayer under 
                        subparagraph (B)(iii)), for purposes of 
                        subparagraph (B), each partner shall take into 
                        account its distributive share of the amounts 
                        determined by the partnership under subclauses 
                        (I) and (II) of clause (i) of such subparagraph 
                        for the taxable year of the partnership ending 
                        with or within the taxable year of the partner. 
                        The preceding sentence shall apply only to 
                        amounts determined with respect to property 
                        placed in service after December 31, 2011.
                            ``(iv) Special rule for passenger 
                        aircraft.--In the case of any passenger 
                        aircraft, the written binding contract 
                        limitation under paragraph (2)(A)(iii)(I) shall 
                        not apply for purposes of subparagraphs 
                        (B)(i)(I) and (C).''.
            (2) Effective date.--The amendment made by this subsection 
        shall apply to taxable years ending after December 31, 2011.
            (3) Transitional rule.--In the case of a taxable year 
        beginning before January 1, 2012, and ending after December 31, 
        2011, the bonus depreciation amount determined under paragraph 
        (4) of section 168(k) of the Internal Revenue Code of 1986 for 
        such year shall be the sum of--
                    (A) such amount determined under such paragraph as 
                in effect on the date before the date of enactment of 
                this Act--
                            (i) taking into account only property 
                        placed in service before January 1, 2012, and
                            (ii) multiplying the limitation under 
                        subparagraph (C)(ii) of such paragraph (as so 
                        in effect) by a fraction the numerator of which 
                        is the number of days in the taxable year 
                        before January 1, 2012, and the denominator of 
                        which is the number of days in the taxable 
                        year, and
                    (B) such amount determined under such paragraph as 
                amended by this Act--
                            (i) taking into account only property 
                        placed in service after December 31, 2011, and
                            (ii) multiplying the limitation under 
                        subparagraph (B)(ii) of such paragraph (as so 
                        in effect) by a fraction the numerator of which 
                        is the number of days in the taxable year after 
                        December 31, 2011, and the denominator of which 
                        is the number of days in the taxable year.
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