Jets for Vets Act of 2012

Closing Corporate Jet Tax Loopholes to Employ Veterans Act of 2012 or the Jets for Vets Act of 2012 - Amends the Internal Revenue Code to classify general aviation aircraft as seven-year property for purposes of the depreciation tax deduction (currently, expenses for aircraft can be deducted or expensed in the current taxable year). Defines "general aviation aircraft" as any airplane or helicopter not used in commercial or contract carrying of passengers or freight, but which primarily engages in the carrying of passengers.

Increases the work opportunity tax credit for the hiring of veterans by increasing the dollar limitation on veteran wages eligible for such credit with revenue saved from the depreciation reclassification of general aviation aircraft by this Act.

[Congressional Bills 112th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4199 Introduced in House (IH)]

112th CONGRESS
  2d Session
                                H. R. 4199

 To amend the Internal Revenue Code of 1986 to close the corporate jet 
 depreciation loophole and to increase the work opportunity tax credit 
                             for veterans.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             March 16, 2012

  Mr. Rigell 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 close the corporate jet 
 depreciation loophole and to increase the work opportunity tax credit 
                             for veterans.

    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 ``Closing Corporate Jet Tax Loopholes 
to Employ Veterans Act of 2012'' or as the ``Jets for Vets Act of 
2012''.

SEC. 2. GENERAL AVIATION AIRCRAFT TREATED AS 7-YEAR PROPERTY.

    (a) In General.--Subparagraph (C) of section 168(e)(3) of the 
Internal Revenue Code of 1986 (relating to classification of certain 
property) is amended by striking ``and'' at the end of clause (iv), by 
redesignating clause (v) as clause (vi), and by inserting after clause 
(iv) the following new clause:
                            ``(v) any general aviation aircraft, and''.
    (b) Class Life.--Paragraph (3) of section 168(g) of the Internal 
Revenue Code of 1986 is amended by inserting after subparagraph (E) the 
following new subparagraph:
                    ``(F) General aviation aircraft.--In the case of 
                any general aviation aircraft, the recovery period used 
                for purposes of paragraph (2) shall be 12 years.''.
    (c) General Aviation Aircraft.--Subsection (i) of section 168 of 
the Internal Revenue Code of 1986 is amended by inserting after 
paragraph (19) the following new paragraph:
            ``(20) General aviation aircraft.--The term `general 
        aviation aircraft' means any airplane or helicopter (including 
        airframes and engines) not used in commercial or contract 
        carrying of passengers or freight, but which primarily engages 
        in the carrying of passengers.''.
    (d) Effective Date.--This section shall be effective for property 
placed in service after December 31, 2012.

SEC. 3. INCREASE IN WORK OPPORTUNITY TAX CREDIT FOR VETERANS.

    (a) In General.--In the case of any taxable year beginning after 
December 31, 2011, each of the specified veteran WOTC dollar amount 
limitations shall be increased by the corporate jet loophole savings 
amount with respect to such limitation.
    (b) Specified Veteran WOTC Dollar Amount Limitation.--For purposes 
of this section, the term ``specified veteran WOTC dollar amount 
limitation'' means each of the $12,000, $14,000, and $24,000 amounts 
contained in section 51(b)(3) of the Internal Revenue Code of 1986.
    (c) Corporate Jet Loophole Savings Amount.--For purposes of this 
section, the term ``corporate jet loophole savings amount'' means, with 
respect to each specified veteran WOTC dollar amount limitation, the 
amount obtained by multiplying such limitation by such percentage as 
the Secretary of the Treasury (or his designee) determines will result 
in an aggregate decrease in Federal revenue pursuant to this section 
which is equal to the aggregate increase in Federal revenue which the 
Secretary (or his designee) determines will result pursuant to section 
1.
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