Small Business Growth Act of 2009 - Amends the Internal Revenue Code to allow small business taxpayers with gross receipts of $5 million or less to elect to expense certain depreciable real property in the year such property is placed in service. Limits the amount of such expensing allowance to $125,000, adjusted for inflation after 2009.
[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3178 Introduced in House (IH)]
111th CONGRESS
1st Session
H. R. 3178
To amend the Internal Revenue Code of 1986 to allow the expensing of
certain real property.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
July 10, 2009
Ms. Markey of Colorado (for herself, Mr. Luetkemeyer, Mr. Grayson, Mr.
Paul, Ms. Ginny Brown-Waite of Florida, Mr. Buchanan, Mr. Bright, and
Mrs. Kirkpatrick of Arizona) 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 allow the expensing of
certain real property.
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 ``Small Business Growth Act of 2009''.
SEC. 2. EXPENSING FOR CERTAIN REAL PROPERTY.
(a) In General.--Part VI of subchapter B of chapter 1 is amended by
inserting after section 179E the following new section:
``SEC. 179F. ELECTION TO EXPENSE CERTAIN REAL PROPERTY.
``(a) Treatment as Expenses.--In the case of a taxpayer described
in subsection (e), the taxpayer may elect to treat the cost of any
qualified real property as an expense which is not chargeable to
capital account. Any cost so treated shall be allowed as a deduction
for the taxable year in which the qualified real property is placed in
service.
``(b) Limitation.--
``(1) In general.--The aggregate cost which may be taken
into account under subsection (a) for any taxable year shall
not exceed $125,000.
``(2) Inflation adjustment.--
``(A) In general.--In the case of any taxable year
beginning in a calendar year after 2009, the $125,000
amount in paragraph (1) shall 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,
by substituting `calendar year 2008' for
`calendar year 1992' in subparagraph (B)
thereof.
``(B) Rounding.--If any amount as adjusted under
subparagraph (A) is not a multiple of $1,000, such
amount shall be rounded to the nearest multiple of
$1,000.
``(c) Election.--
``(1) In general.--An election under this section for any
taxable year shall be made on the taxpayer's return of the tax
imposed by this chapter for the taxable year. Such election
shall specify the qualified real property to which the election
applies and shall be made in such manner as the Secretary may
by regulations prescribe.
``(2) Election irrevocable.--Any election made under this
section may not be revoked except with the consent of the
Secretary.
``(d) Qualified Real Property.--For purposes of this section, the
term `qualified real property' means section 1250 property (as defined
by section 1250(c)) located in the United States--
``(1) the original use of which commences with the
taxpayer, and
``(2) which is placed in service by the taxpayer after the
date of the enactment of this section.
``(e) Taxpayer Described.--
``(1) In general.--A taxpayer is described in this
subsection if, for the immediately prior taxable year, the
taxpayer (or any predecessor) met the $5,000,000 gross receipts
test of paragraph (2).
``(2) $5,000,000 gross receipts test.--For purposes of
paragraph (1)--
``(A) In general.--A taxpayer meets the $5,000,000
gross receipts test of this paragraph for a taxable
year if the average annual gross receipts of the
taxpayer for the 3-taxable-year period ending with such
taxable year does not exceed $5,000,000.
``(B) Aggregation rules.--All persons treated as a
single employer under subsection (a) or (b) of section
52 or subsection (m) or (o) of section 414 shall be
treated as one person for purposes of subparagraph (A).
``(C) Not in existence for entire 3-year period.--
If the taxpayer was not in existence for the entire 3-
year period referred to in subparagraph (A), such
paragraph shall be applied on the basis of the period
during which the taxpayer (or trade or business) was in
existence.
``(D) Special rules.--For purposes of subparagraph
(A), the rules of paragraph (3) of section 448(c) shall
apply.
``(f) Reporting.--No deduction shall be allowed under subsection
(a) to any taxpayer for any taxable year unless the taxpayer files with
the Secretary a report containing such information as the Secretary
shall require.''.
(b) Conforming Amendments.--
(1) Section 263(a)(1) is amended by striking ``or'' at the
end of subparagraph (K), by striking the period at the end of
subparagraph (L) and inserting ``, or'', and by inserting after
subparagraph (L) the following new subparagraph:
``(M) expenditures for which a deduction is allowed
under section 179F.''.
(2) Section 312(k)(3)(B) is amended by striking ``or 179E''
each place it appears in the heading and text thereof and
inserting ``179E, or 179F''.
(3) The table of sections for part VI of subchapter B of
chapter 1 is amended by inserting after the item relating to
section 179E the following new item:
``Sec. 179F. Election to expense certain real property.''.
(c) Effective Date.--The amendments made by this section shall
apply to costs paid or incurred after the date of the enactment of this
Act.
<all>
Introduced in House
Introduced in House
Sponsor introductory remarks on measure. (CR E1725)
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