To amend the Internal Revenue Code of 1986 to treat certain farming business machinery and equipment as 5-year property for purposes of depreciation.

Amends the Internal Revenue Code to allow a five-year depreciation recovery period for certain farming business machinery or equipment placed in service before January 1, 2010.

[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4236 Introduced in House (IH)]







109th CONGRESS
  1st Session
                                H. R. 4236

  To amend the Internal Revenue Code of 1986 to treat certain farming 
  business machinery and equipment as 5-year property for purposes of 
                             depreciation.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            November 4, 2005

  Mr. Chocola (for himself, Mr. Pomeroy, Mr. Herger, Mr. Ramstad, Mr. 
Nussle, Mr. English of Pennsylvania, Mr. Weller, Mr. Hulshof, Mr. Lewis 
  of Kentucky, Mr. Foley, Mr. Beauprez, and Mr. Lucas) 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 treat certain farming 
  business machinery and equipment as 5-year property for purposes of 
                             depreciation.

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

SECTION 1. CERTAIN FARMING BUSINESS MACHINERY AND EQUIPMENT TREATED AS 
              5-YEAR PROPERTY.

    (a) In General.--Section 168(e)(3)(B) of the Internal Revenue Code 
of 1986 (defining 5-year property) is amended by striking ``and'' at 
the end of clause (v), by striking the period at the end of clause 
(vi)(III) and inserting ``, and'', and by inserting after clause (vi) 
the following new clause:
                            ``(vii) any machinery or equipment (other 
                        than any grain bin, cotton ginning asset, 
                        fence, or other land improvement) which is used 
                        in a farming business (as defined in section 
                        263A(e)(4)) and placed in service before 
                        January 1, 2010.''.
    (b) Alternative System.--The table contained in section 
168(g)(3)(B) of the Internal Revenue Code of 1986 (relating to special 
rule for certain property assigned to classes) is amended by inserting 
after the item relating to subparagraph (B)(iii) the following:

``(B)(vii)..................................................      10''.
    (c) Effective Date.--The amendments made by this section shall 
apply to property placed in service after the date of the enactment of 
this Act.
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