[Congressional Bills 114th Congress]
[From the U.S. Government Publishing Office]
[H.R. 636 Engrossed in House (EH)]

114th CONGRESS
  1st Session
                                H. R. 636

_______________________________________________________________________

                                 AN ACT


 
   To amend the Internal Revenue Code of 1986 to permanently extend 
        increased expensing limitations, and for other purposes.

    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 ``America's Small Business Tax Relief 
Act of 2015''.

SEC. 2. EXPENSING CERTAIN DEPRECIABLE BUSINESS ASSETS FOR SMALL 
              BUSINESS.

    (a) In General.--
            (1) Dollar limitation.--Section 179(b)(1) of the Internal 
        Revenue Code of 1986 is amended by striking ``shall not 
        exceed--'' and all that follows and inserting ``shall not 
        exceed $500,000.''.
            (2) Reduction in limitation.--Section 179(b)(2) of such 
        Code is amended by striking ``exceeds--'' and all that follows 
        and inserting ``exceeds $2,000,000.''.
    (b) Computer Software.--Section 179(d)(1)(A)(ii) of such Code is 
amended by striking ``, to which section 167 applies, and which is 
placed in service in a taxable year beginning after 2002 and before 
2015'' and inserting ``and to which section 167 applies''.
    (c) Election.--Section 179(c)(2) of such Code is amended--
            (1) by striking ``may not be revoked'' and all that follows 
        through ``and before 2015''; and
            (2) by striking ``irrevocable'' in the heading thereof.
    (d) Air Conditioning and Heating Units.--Section 179(d)(1) of such 
Code is amended by striking ``and shall not include air conditioning or 
heating units''.
    (e) Qualified Real Property.--Section 179(f) of such Code is 
amended--
            (1) by striking ``beginning after 2009 and before 2015'' in 
        paragraph (1); and
            (2) by striking paragraphs (3) and (4).
    (f) Inflation Adjustment.--Section 179(b) of such Code is amended 
by adding at the end the following new paragraph:
            ``(6) Inflation adjustment.--
                    ``(A) In general.--In the case of any taxable year 
                beginning after 2015, the dollar amounts in paragraphs 
                (1) and (2) shall each be increased by an amount equal 
                to--
                            ``(i) such dollar amount, multiplied by
                            ``(ii) the cost-of-living adjustment 
                        determined under section 1(f)(3) for the 
                        calendar year in which the taxable year begins, 
                        determined by substituting `calendar year 2014' 
                        for `calendar year 1992' in subparagraph (B) 
                        thereof.
                    ``(B) Rounding.--The amount of any increase under 
                subparagraph (A) shall be rounded to the nearest 
                multiple of $10,000.''.
    (g) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2014.

SEC. 3. REDUCED RECOGNITION PERIOD FOR BUILT-IN GAINS OF S CORPORATIONS 
              MADE PERMANENT.

    (a) In General.--Paragraph (7) of section 1374(d) of the Internal 
Revenue Code of 1986 is amended to read as follows:
            ``(7) Recognition period.--
                    ``(A) In general.--The term `recognition period' 
                means the 5-year period beginning with the first day of 
                the first taxable year for which the corporation was an 
                S corporation. For purposes of applying this section to 
                any amount includible in income by reason of 
                distributions to shareholders pursuant to section 
                593(e), the preceding sentence shall be applied without 
                regard to the phrase `5-year'.
                    ``(B) Installment sales.--If an S corporation sells 
                an asset and reports the income from the sale using the 
                installment method under section 453, the treatment of 
                all payments received shall be governed by the 
                provisions of this paragraph applicable to the taxable 
                year in which such sale was made.''.
    (b) Effective Date.--The amendment made by this section shall apply 
to taxable years beginning after December 31, 2014.

SEC. 4. PERMANENT RULE REGARDING BASIS ADJUSTMENT TO STOCK OF S 
              CORPORATIONS MAKING CHARITABLE CONTRIBUTIONS OF PROPERTY.

    (a) In General.--Section 1367(a)(2) of the Internal Revenue Code of 
1986 is amended by striking the last sentence.
    (b) Effective Date.--The amendment made by this section shall apply 
to contributions made in taxable years beginning after December 31, 
2014.

SEC. 5. BUDGETARY EFFECTS.

    The budgetary effects of this Act shall not be entered on either 
PAYGO scorecard maintained pursuant to section 4(d) of the Statutory 
Pay-As-You-Go Act of 2010.

            Passed the House of Representatives February 13, 2015.

            Attest:

                                                                 Clerk.
114th CONGRESS

  1st Session

                               H. R. 636

_______________________________________________________________________

                                 AN ACT

   To amend the Internal Revenue Code of 1986 to permanently extend 
        increased expensing limitations, and for other purposes.