Short title

This Act may be cited as the

America’s Small Business Tax Relief Act of 2015

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.

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.

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.

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.