Amends the Internal Revenue Code to: (1) increase from 30 to 50% the rate of the special depreciation allowance (bonus depreciation) for certain business equipment and assets placed in service in 2008; and (2) allow a corporation to elect to increase its alternative minimum tax credit by its bonus depreciation amount in lieu of applying such allowance.
[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[S. 2572 Introduced in Senate (IS)]
110th CONGRESS
2d Session
S. 2572
To amend the Internal Revenue Code of 1986 to provide for bonus
depreciation or an additional minimum tax credit in lieu of such bonus
depreciation.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
January 30, 2008
Mr. Voinovich introduced the following bill; which was read twice and
referred to the Committee on Finance
_______________________________________________________________________
A BILL
To amend the Internal Revenue Code of 1986 to provide for bonus
depreciation or an additional minimum tax credit in lieu of such bonus
depreciation.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. BONUS DEPRECIATION FOR CERTAIN PROPERTY ACQUIRED DURING
2008.
(a) In General.--Subsection (k) of section 168 of the Internal
Revenue Code of 1986 (relating to special allowance for certain
property acquired after September 10, 2001, and before January 1, 2005)
is amended--
(1) by striking ``September 10, 2001'' each place it
appears and inserting ``December 31, 2007'',
(2) by striking ``September 11, 2001'' each place it
appears and inserting ``January 1, 2008'',
(3) by striking ``January 1, 2005'' each place it appears
and inserting ``January 1, 2009'', and
(4) by striking ``January 1, 2006'' each place it appears
and inserting ``January 1, 2010''.
(b) 50 Percent Allowance.--Subparagraph (A) of section 168(k)(1) of
such Code is amended by striking ``30 percent'' and inserting ``50
percent''.
(c) Conforming Amendments.--
(1) Subclause (I) of section 168(k)(2)(B)(i) of such Code
is amended by striking ``and (iii)'' and inserting ``(iii), and
(iv)''.
(2) Subclause (IV) of section 168(k)(2)(B)(i) of such Code
is amended by striking ``clauses (ii) and (iii)'' and inserting
``clause (iii)''.
(3) Clause (i) of section 168(k)(2)(C) of such Code is
amended by striking ``and (iii)'' and inserting ``, (iii), and
(iv)''.
(4) Clause (i) of section 168(k)(2)(F) of such Code is
amended by striking ``$4,600'' and inserting ``$8,000''.
(5)(A) Subsection (k) of section 168 of such Code is
amended by striking paragraph (4).
(B) Clause (iii) of section 168(k)(2)(D) of such Code is
amended by striking the last sentence.
(6) Paragraph (4) of section 168(l) of such Code is amended
by redesignating subparagraphs (A), (B), and (C) as
subparagraphs (B), (C), and (D) and inserting before
subparagraph (B) (as so redesignated) the following new
subparagraph:
``(A) Bonus depreciation property under subsection
(k).--Such term shall not include any property to which
section 168(k) applies.''.
(7) Paragraph (5) of section 168(l) of such Code is
amended--
(A) by striking ``September 10, 2001'' in
subparagraph (A) and inserting ``December 31, 2007'',
and
(B) by striking ``January 1, 2005'' in subparagraph
(B) and inserting ``January 1, 2009''.
(8) Subparagraph (D) of section 1400L(b)(2) of such Code is
amended by striking ``January 1, 2005'' and inserting ``January
1, 2010''.
(9) Paragraph (3) of section 1400N(d) of such Code is
amended--
(A) by striking ``September 10, 2001'' in
subparagraph (A) and inserting ``December 31, 2007'',
and
(B) by striking ``January 1, 2005'' in subparagraph
(B) and inserting ``January 1, 2009''.
(10) Paragraph (6) of section 1400N(d) of such Code is
amended by adding at the end the following new subparagraph:
``(E) Exception for bonus depreciation property
under section 168(k).--The term `specified Gulf
Opportunity Zone extension property' shall not include
any property to which section 168(k) applies.''.
(11) The heading for subsection (k) of section 168 of such
Code is amended--
(A) by striking ``September 10, 2001'' and
inserting ``December 31, 2007'', and
(B) by striking ``January 1, 2005'' and inserting
``January 1, 2009''.
(12) The heading for clause (ii) of section 168(k)(2)(B) of
such Code is amended by striking ``pre-january 1, 2005'' and
inserting ``pre-january 1, 2009''.
(d) Effective Date.--The amendments made by this section shall
apply to property placed in service after December 31, 2007, in taxable
years ending after such date.
SEC. 2. ELECTION TO INCREASE MINIMUM TAX CREDIT IN LIEU OF BONUS
DEPRECIATION.
(a) In General.--Section 53 of the Internal Revenue Code of 1986
(relating to credit for prior year minimum tax liability) is amended by
adding at the end the following new subsection:
``(f) Additional Credit in Lieu of Bonus Depreciation.--
``(1) In general.--In the case of a corporation making an
election under this subsection for a taxable year, the
limitation under subsection (c) shall be increased by an amount
equal to the bonus depreciation amount.
``(2) Bonus depreciation amount.--For purposes of paragraph
(1), the bonus depreciation amount for any taxable year is an
amount equal to the product of--
``(A) 35 percent, and
``(B) the excess (if any) of--
``(i) the aggregate amount of depreciation
which would be determined under section 168 for
property placed in service during such taxable
year if no election under this subsection were
made, over
``(ii) the aggregate allowance for
depreciation allowable with respect to such
property placed in service for such taxable
year.
``(3) Aggregation rule.--All members of the same controlled
group shall be treated as 1 corporation for purposes of this
subsection.
``(4) Election.--Section 168(k) (relating to bonus
depreciation) shall not apply to any property placed in service
during a taxable year by a corporation making an election under
this subsection for such taxable year. An election under this
subsection may only be revoked with the consent of the
Secretary.
``(5) Credit refundable.--The aggregate increase in the
credit allowed by this section for any taxable year by reason
of this subsection shall for purposes of this title (other than
subsection (b)(2) of this section) be treated as a credit
allowed to the taxpayer under subpart C.''.
(b) Cross Reference.--Section 168(k) of such Code (relating to
bonus depreciation) is amended by adding at the end the following new
paragraph:
``(5) Cross reference.--For an election to claim additional
minimum tax credits in lieu of the allowance determined under
this subsection, see section 53(f).''.
<all>
Introduced in Senate
Read twice and referred to the Committee on Finance.
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