Bill > HR3967

This bill, known as the CREATE JOBS Act, introduces several significant changes to the Internal Revenue Code. First, it permanently establishes full expensing for qualified property, allowing businesses to immediately deduct the full cost of eligible property investments placed in service after September 27, 2017, instead of depreciating those assets over time. Second, the bill introduces a neutral cost recovery depreciation adjustment for residential rental and nonresidential real property, which adjusts depreciation deductions annually based on the gross domestic product deflator, effectively accounting for inflation and providing a more dynamic approach to property value calculation. Third, the bill eliminates the current amortization requirements for research and experimental expenditures, allowing businesses to treat these costs as immediate expenses in the year they are incurred, rather than spreading them out over multiple years. These changes are designed to provide businesses with more immediate tax benefits, potentially encouraging investment, innovation, and economic growth by offering more favorable tax treatment for capital investments and research spending. The bill would apply to various types of property and expenditures across different tax years, with specific effective dates for each provision.

Budget and Finance

https://www.congress.gov/bill/119th-congress/house-bill/3967/all-info