Middle Class Jobs Protection Act of 2008 - Amends the Internal Revenue Code to: (1) reduce the maximum corporate income tax rate to 25%; (2) increase the expensing allowance for depreciable business assets to $250,000 in 2008 and 2009; (3) increase to 50% the current year bonus depreciation allowance for certain property placed in service in 2008 and 2009; and (4) allow additional carrybacks for certain net operating losses and for excess business and foreign tax credit amounts arising in 2008 and 2009.
[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4995 Introduced in House (IH)]
110th CONGRESS
2d Session
H. R. 4995
To amend the Internal Revenue Code of 1986 to reduce corporate marginal
income tax rates, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
January 16, 2008
Mr. Cantor (for himself, Mr. Hensarling, Mr. Blunt, Mr. Campbell of
California, Ms. Granger, Mr. Jordan of Ohio, Mr. McHenry, Mrs.
Bachmann, Mr. Herger, Mr. Chabot, Mr. Price of Georgia, Mr. Flake, Mr.
Feeney, Mr. David Davis of Tennessee, Mr. Brown of South Carolina, Mr.
Barrett of South Carolina, Mr. Garrett of New Jersey, Mr. Doolittle,
Mr. Lamborn, Mr. Akin, Mr. Weldon of Florida, Mr. Kingston, Mr. Pitts,
Mr. Marchant, Mr. Gingrey, Mr. Souder, Mr. Goode, Ms. Foxx, Mr. Roskam,
Mr. Kuhl of New York, Mr. Walberg, Mr. Bishop of Utah, Mr. Franks of
Arizona, Mr. King of Iowa, and Mr. Pence) 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 reduce corporate marginal
income tax rates, 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 ``Middle Class Jobs Protection Act of
2008''.
SEC. 2. REDUCTION IN CORPORATE MARGINAL INCOME TAX RATES.
(a) General Rule.--Paragraph (1) of section 11(b) of the Internal
Revenue Code of 1986 is amended--
(1) by inserting ``and'' at the end of subparagraph (A),
(2) by striking ``but does not exceed $75,000,'' in
subparagraph (B) and inserting a period,
(3) by striking subparagraphs (C) and (D), and
(4) by striking the last 2 sentences.
(b) Personal Service Corporations.--Paragraph (2) of section 11(b)
of such Code is amended by striking ``35 percent'' and inserting ``25
percent''.
(c) Conforming Amendments.--Paragraphs (1) and (2) of section
1445(e) of such Code are each amended by striking ``35 percent'' and
inserting ``25 percent''.
(d) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after the date of the enactment of
this Act, except that the amendments made by subsection (c) shall take
effect on such date.
SEC. 3. TEMPORARY INCREASE IN LIMITATION ON EXPENSING CERTAIN
DEPRECIABLE BUSINESS ASSETS.
(a) Dollar Limitation.--Paragraph (1) of section 179(b) of the
Internal Revenue Code of 1986 (relating to limitations) is amended by
striking ``$125,000 in the case of taxable years beginning after 2006
and before 2011'' and inserting ``$125,000 in the case of taxable years
beginning in 2007 or 2010 and $250,000 in the case of taxable years
beginning in 2008 or 2009''.
(b) Reduction in Limitation.--Paragraph (2) of section 179(b) of
such Code (relating to limitations) is amended by striking ``$500,000
in the case of taxable years beginning after 2006 and before 2011'' and
inserting ``$500,000 in the case of taxable years beginning in 2007 or
2010 and $1,000,000 in the case of taxable years beginning in 2008 or
2009''.
(c) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2007.
SEC. 4. 50 PERCENT ALLOWANCE FOR DEPRECIATION FOR CERTAIN PROPERTY
ACQUIRED DURING 2008 AND 2009.
(a) In General.--Paragraph (4) of section 168(k) of the Internal
Revenue Code of 1986 (relating to 50-percent bonus for certain
property) is amended--
(1) by striking ``May 5, 2003'' each place it appears and
inserting ``December 31, 2007'',
(2) by striking ``January 1, 2005'' each place it appears
and inserting ``January 1, 2010'',
(3) by striking ``May 6, 2003'' in subparagraph (B)(ii)(I)
and inserting ``January 1, 2008'',
(4) by striking ``January 1, 2006'' in subparagraph
(B)(iii) and inserting ``January 1, 2011'', and
(5) by striking ``of 30-percent bonus'' in the heading for
subparagraph (E).
(b) Effective Date.--
(1) In general.--The amendments made by this section shall
apply to property placed in service in taxable years beginning
after December 31, 2007.
(2) Exception for certain property.--The amendments made by
this section shall not apply to any property to which section
105 of the Gulf Opportunity Zone Act of 2005 applies.
SEC. 5. 5-YEAR CARRYBACK FOR CERTAIN NET OPERATING LOSSES.
(a) In General.--Subsection (H) of section 172(b)(1) of the
Internal Revenue Code of 1986 is amended by inserting ``or beginning
during 2008 or 2009,'' after ``2002''.
(b) Effective Date.--The amendments made by this section shall
apply to net operating losses for taxable years beginning after
December 31, 2007.
SEC. 6. 3-YEAR CARRYBACK FOR CERTAIN CREDITS.
(a) General Business Credit.--Subsection (a) of section 39 of the
Internal Revenue Code of 1986 is amended by adding at the end the
following new paragraph:
``(4) Special rule for 2008 and 2009.--In the case of an
excess described in paragraph (1) arising in a taxable year
beginning in 2008 or 2009--
``(A) paragraph (1)(A) shall be applied by
substituting `3 taxable years' for `taxable year',
``(B) paragraph (2)(A) shall be applied by
substituting `24 taxable years' for `21 taxable years',
and
``(C) paragraph (2)(B) shall be applied by
substituting `23 taxable years' for `20 taxable
years'.''.
(b) Foreign Tax Credit.--Section 904(c) of the Internal Revenue
Code of 1986 is amended by adding at the end thereof the following:
``In the case of taxable years beginning in 2008 or 2009, the first
sentence of this subsection shall, at the election of the taxpayer, be
applied by substituting `any of the three preceding taxable years' for
`the first preceding taxable year'.''.
(c) Effective Date.--The amendments made by this section shall
apply to credits arising in taxable years beginning after December 31,
2007.
<all>
Introduced in House
Introduced in House
Referred to the House Committee on Ways and Means.
Llama 3.2 · runs locally in your browser
Ask anything about this bill. The AI reads the full text to answer.
Enter to send · Shift+Enter for new line