[Congressional Record Volume 163, Number 195 (Thursday, November 30, 2017)]
[Senate]
[Page S7568]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

  SA 1662. Ms. BALDWIN submitted an amendment intended to be proposed 
to amendment SA 1618 proposed by Mr. McConnell (for Mr. Hatch (for 
himself and Ms. Murkowski)) to the bill H.R. 1, to provide for 
reconciliation pursuant to titles II and V of the concurrent resolution 
on the budget for fiscal year 2018; which was ordered to lie on the 
table; as follows:

       At the appropriate place, insert the following:

     SEC. ____. NEW BUSINESS EXPENDITURES.

       (a) In General.--Subsections (a) and (b) of section 195 are 
     both amended by inserting ``and organizational'' after 
     ``start-up'' each place it appears.
       (b) Organizational Expenditures.--Subsection (c) of section 
     195 is amended by adding at the end the following new 
     paragraph:
       ``(3) Organizational expenditures.--The term 
     `organizational expenditures' means any expenditure which--
       ``(A) is incident to the creation of a corporation or a 
     partnership,
       ``(B) is chargeable to capital account, and
       ``(C) is of a character which, if expended incident to the 
     creation of a corporation or a partnership having a limited 
     life, would be amortizable over such life.''.
       (c) Dollar Amounts.--Clause (ii) of section 195(b)(1)(A) is 
     amended--
       (1) by striking ``$5,000'' and inserting ``$20,000''; and
       (2) by striking ``$50,000'' and inserting ``$120,000''.
       (d) Amortization Treatment.--Subparagraph (B) of section 
     195(b)(1), as amended by subsection (a), is amended to read 
     as follows:
       ``(B) the remainder of such start-up and organizational 
     expenditures shall be charged to capital account and allowed 
     as an amortization deduction determined by amortizing such 
     expenditures ratably over the 15-year period beginning with 
     the midpoint of the taxable year in which the active trade or 
     business begins.''.
       (e) Conforming Amendments.--
       (1) Section 195(b)(1) is amended--
       (A) by inserting ``(or, in the case of a partnership, the 
     partnership elects)'' after ``If a taxpayer elects''; and
       (B) by inserting ``(or the partnership, as the case may 
     be)'' after ``the taxpayer'' in subparagraph (A).
       (2) Section 195(b)(2) is amended--
       (A) by striking ``amortization period.--In any case'' and 
     inserting the following: ``amortization period.--
       ``(A) In general.--In any case''; and
       (B) by adding at the end the following new subparagraph:
       ``(B) Special partnership rule.--In the case of a 
     partnership, subparagraph (A) shall be applied at the 
     partnership level.''.
       (3) Section 195(b) is amended by striking paragraph (3).
       (4)(A) Part VIII of subchapter B of chapter 1 of such Code 
     is amended by striking section 248 (and by striking the item 
     relating to such section in the table of sections for such 
     part).
       (B) Section 170(b)(2)(C)(ii) is amended by striking 
     ``(except section 248)''.
       (C) Section 312(n)(3) is amended by striking ``Sections 173 
     and 248'' and inserting ``Section 173''.
       (D) Section 535(b)(3) is amended by striking ``(except 
     section 248)''.
       (E) Section 545(b)(3) is amended by striking ``(except 
     section 248)''.
       (F) Section 834(c)(7) is amended by striking ``(except 
     section 248)''.
       (G) Section 852(b)(2)(C) is amended by striking ``(except 
     section 248)''.
       (H) Section 857(b)(2)(A) is amended by striking ``(except 
     section 248)''.
       (I) Section 1363(b) is amended by inserting ``and'' at the 
     end of paragraph (2), by striking paragraph (3), and by 
     redesignating paragraph (4) as paragraph (3).
       (J) Section 1375(b)(1)(B)(i) is amended by striking 
     ``(other than the deduction allowed by section 248, relating 
     to organization expenditures)''.
       (5) Part I of subchapter K of chapter 1 is amended by 
     striking section 709 (and by striking the item relating to 
     such section in the table of sections for such part).
       (6) The heading of section 195 (and the item relating to 
     such section in the table of sections for part VI of 
     subchapter B of chapter 1 of such Code) are each amended by 
     inserting ``and organizational'' after ``Start-up''.
       (f) Effective Date.--The amendments made by this section 
     shall apply to expenses paid or incurred in taxable years 
     beginning after December 31, 2017.
                                 ______