[Congressional Bills 114th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5818 Introduced in House (IH)]

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114th CONGRESS
  2d Session
                                H. R. 5818

To amend the Internal Revenue Code of 1986 to provide for expensing of 
       property used to comply with Federal laws and regulations.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             July 14, 2016

   Mr. Blum (for himself, Mr. Grothman, and Mr. Bishop of Michigan) 
 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 provide for expensing of 
       property used to comply with Federal laws and regulations.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Mandated Expenses Tax Relief Act''.

SEC. 2. EXPENSING OF PROPERTY USED TO COMPLY WITH FEDERAL LAWS AND 
              REGULATIONS.

    (a) In General.--Part VI of subchapter B of chapter 1 of the 
Internal Revenue Code of 1986 is amended by inserting after section 
179E the following new section:

``SEC. 179F. ELECTION TO EXPENSE PROPERTY USED TO COMPLY WITH FEDERAL 
              LAWS AND REGULATIONS.

    ``(a) In General.--A taxpayer may elect to treat the cost of any 
Federal compliance property as an expense which is not chargeable to 
capital account. Any cost so treated shall be allowed as a deduction 
for the taxable year in which the Federal compliance property is placed 
in service.
    ``(b) Federal Compliance Property.--For purposes of this section, 
the term `Federal compliance property' means any property--
            ``(1) which is of a character with respect to which 
        depreciation (or amortization in lieu of depreciation) is 
        allowable, and
            ``(2) which is used by the taxpayer to comply with any 
        Federal law or regulation.
    ``(c) Election.--
            ``(1) In general.--An election under this section for any 
        taxable year shall be made on the taxpayer's return of the tax 
        imposed by this chapter for the taxable year. Such election 
        shall specify the Federal compliance property to which the 
        election applies and shall be made in such manner as the 
        Secretary may provide.
            ``(2) Election irrevocable.--Any election made under this 
        section may not be revoked except with the consent of the 
        Secretary.''.
    (b) Conforming Amendments.--
            (1) Section 312(k)(3)(B) of such Code is amended by 
        striking ``or 179E'' each place it appears in the heading and 
        text and inserting ``179E, or 179F''.
            (2) Paragraphs (2)(C) and (3)(C) of section 1245(a) of such 
        Code are each amended by inserting ``179F,'' after ``179E,''.
            (3) The table of sections for part VI of subchapter B of 
        chapter 1 of such Code is amended by inserting after the item 
        relating to section 179E the following new item:

``Sec. 179F. Election to expense property used to comply with Federal 
                            laws and regulations.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to amounts paid or incurred after the date of the enactment of 
this Act.
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